Power Integrations (NASDAQ:POWI) Shares Climb 7.4% - What's Next?

Key Points

• Power Integrations shares rose 7.4% to about $55.30, although trading volume was 74% below the average session volume.
• Analyst sentiment remains cautiously positive, with a consensus “Moderate Buy” rating and an average price target of $72.67; several firms recently lowered their targets to $80.
• The company exceeded quarterly expectations, reporting $0.37 in EPS versus a $0.32 estimate and $118.94 million in revenue, up 2.6% year over year. Major institutions including BlackRock and William Blair also initiated sizable positions.

Shares of Power Integrations, Inc. (NASDAQ:POWI - Get Free Report) rose 7.4% on Friday. The stock traded as high as $55.11 and last traded at $55.2990. Approximately 252,579 shares changed hands during trading, a decline of 74% from the average session volume of 964,559 shares. The stock had previously closed at $51.50.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. Zacks Research downgraded shares of Power Integrations from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 20th. Needham & Company LLC lowered their price objective on shares of Power Integrations from $90.00 to $80.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Wall Street Zen raised shares of Power Integrations from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Stifel Nicolaus dropped their price objective on shares of Power Integrations from $95.00 to $80.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Finally, Williams Trading set a $80.00 target price on shares of Power Integrations in a report on Thursday, August 6th. Four equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, Power Integrations presently has a consensus rating of "Moderate Buy" and an average price target of $72.67.

Power Integrations Stock Performance

The business's 50 day simple moving average is $55.10 and its 200-day simple moving average is $64.02. The stock has a market capitalization of $3.10 billion, a price-to-earnings ratio of 122.88 and a beta of 1.54.

Power Integrations (NASDAQ:POWI - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The semiconductor company reported $0.37 EPS for the quarter, beating the consensus estimate of $0.32 by $0.05. The company had revenue of $118.94 million for the quarter, compared to analyst estimates of $117.44 million. Power Integrations had a net margin of 5.58% and a return on equity of 5.50%. Power Integrations's revenue was up 2.6% compared to the same quarter last year. During the same quarter last year, the business earned $0.35 earnings per share. As a group, sell-side analysts expect that Power Integrations, Inc. will post 0.77 EPS for the current year.

Institutional Trading of Power Integrations

Several hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of Power Integrations during the 2nd quarter valued at $730,559,000. William Blair Investment Management LLC acquired a new stake in shares of Power Integrations in the second quarter valued at $199,517,000. Bank of New York Mellon Corp bought a new position in Power Integrations during the second quarter valued at about $39,075,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in Power Integrations during the second quarter worth about $34,281,000. Finally, Bank of America Corp DE acquired a new position in Power Integrations during the second quarter worth about $31,957,000.

About Power Integrations

Power Integrations, Inc is a semiconductor company that designs and manufactures high-performance power-conversion technologies. Its products are used to convert and manage electrical power in applications such as consumer electronics, appliances, industrial equipment, communications systems, renewable-energy installations and automotive systems.

The company's product portfolio includes integrated circuits for AC-to-DC and DC-to-DC power supplies, LED lighting drivers, power-factor-correction systems, high-voltage gate drivers and motor-drive applications.

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