Power Solutions International (NASDAQ:PSIX) Trading 7.4% Higher - Should You Buy?

Key Points

• Power Solutions International's stock price surged by 7.4% to $94.41, despite a trading volume decline of 49% compared to the average session volume.
• Analyst upgrades from Weiss Ratings indicate a strong performance outlook, with two analysts assigning a "Buy" rating and a consensus target price of $37.00.
• Recent insider trading shows significant sales, with CEO Constantine Xykis reducing his stake by 76.8%, raising questions about management's confidence in future performance.

Power Solutions International, Inc. (NASDAQ:PSIX - Get Free Report) shot up 7.4% on Thursday . The company traded as high as $94.55 and last traded at $94.41. 248,137 shares were traded during mid-day trading, a decline of 49% from the average session volume of 490,028 shares. The stock had previously closed at $87.91.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings restated a "buy (b)" rating on shares of Power Solutions International in a research report on Wednesday. Two equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus target price of $37.00.

Power Solutions International Trading Up 3.7%

The stock's 50 day moving average is $92.32 and its 200-day moving average is $62.54. The company has a market cap of $2.10 billion, a P/E ratio of 18.96 and a beta of 1.53. The company has a current ratio of 1.26, a quick ratio of 0.65 and a debt-to-equity ratio of 0.01.

Power Solutions International (NASDAQ:PSIX - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported $2.23 earnings per share (EPS) for the quarter. The business had revenue of $191.91 million for the quarter. Power Solutions International had a net margin of 18.56% and a return on equity of 136.57%.

Insiders Place Their Bets

In related news, CEO Constantine Xykis sold 26,005 shares of the firm's stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $95.85, for a total value of $2,492,579.25. Following the transaction, the chief executive officer directly owned 7,854 shares of the company's stock, valued at approximately $752,805.90. This trade represents a 76.80% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Hong He sold 2,500 shares of the firm's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $90.03, for a total value of $225,075.00. Following the completion of the transaction, the director directly owned 26,250 shares in the company, valued at approximately $2,363,287.50. This represents a 8.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 211,014 shares of company stock valued at $18,768,831. 0.96% of the stock is currently owned by corporate insiders.

Institutional Trading of Power Solutions International

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Geode Capital Management LLC raised its position in shares of Power Solutions International by 102.2% during the second quarter. Geode Capital Management LLC now owns 154,383 shares of the company's stock valued at $9,987,000 after buying an additional 78,034 shares during the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in Power Solutions International in the 2nd quarter valued at $4,735,000. Raymond James Financial Inc. increased its holdings in Power Solutions International by 174.6% in the 2nd quarter. Raymond James Financial Inc. now owns 67,914 shares of the company's stock valued at $4,393,000 after acquiring an additional 43,185 shares during the last quarter. Valiant Capital Management L.P. increased its holdings in Power Solutions International by 38.8% in the 2nd quarter. Valiant Capital Management L.P. now owns 60,505 shares of the company's stock valued at $3,913,000 after acquiring an additional 16,900 shares during the last quarter. Finally, Lazard Asset Management LLC bought a new stake in shares of Power Solutions International in the second quarter worth about $2,968,000. Institutional investors own 22.28% of the company's stock.

About Power Solutions International

Power Solutions International, Inc engages in the design, manufacture, and trade of power systems and electrical power generation equipment. The firm provides integrated turnkey solutions to global original equipment manufacturers and end-user customers within the energy, industrial, and transportation end markets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.