Power Integrations (NASDAQ:POWI) Trading Up 6.5% - Time to Buy?

Key Points

• Power Integrations shares rose 6.5% to about $52.92, although trading volume was 81% below the average daily volume.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $72.67; four analysts rate the stock Buy and four rate it Hold.
• The company exceeded quarterly expectations, reporting $0.37 in EPS versus $0.32 expected and $118.94 million in revenue, up 2.6% year over year. However, its valuation remains elevated, with a P/E ratio of 116.72.

Power Integrations, Inc. (NASDAQ:POWI - Get Free Report)'s share price traded up 6.5% during trading on Friday . The stock traded as high as $53.01 and last traded at $52.9150. 187,222 shares changed hands during mid-day trading, a decline of 81% from the average daily volume of 975,813 shares. The stock had previously closed at $49.69.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on POWI shares. Weiss Ratings raised Power Integrations from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, August 19th. Stifel Nicolaus lowered their price target on Power Integrations from $95.00 to $80.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Williams Trading set a $80.00 price target on shares of Power Integrations in a research note on Thursday, August 6th. Needham & Company LLC cut their price objective on shares of Power Integrations from $90.00 to $80.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Finally, Zacks Research lowered shares of Power Integrations from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 20th. Four investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $72.67.

Power Integrations Stock Performance

The firm has a 50-day moving average of $61.21 and a 200-day moving average of $63.68. The firm has a market capitalization of $2.94 billion, a P/E ratio of 116.72 and a beta of 1.54.

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

Hedge Funds Weigh In On Power Integrations

Hedge funds have recently bought and sold shares of the business. Sequoia Financial Advisors LLC bought a new position in Power Integrations during the 2nd quarter valued at about $204,000. Tidal Investments LLC raised its holdings in shares of Power Integrations by 33.6% during the second quarter. Tidal Investments LLC now owns 14,258 shares of the semiconductor company's stock valued at $1,194,000 after purchasing an additional 3,582 shares during the last quarter. Squarepoint Ops LLC purchased a new position in shares of Power Integrations during the second quarter valued at approximately $815,000. Baird Financial Group Inc. bought a new position in Power Integrations during the second quarter valued at approximately $263,000. Finally, Nykredit A S bought a new position in Power Integrations during the second quarter valued at approximately $141,000.

Power Integrations Company Profile

Power Integrations, Inc, based in Hillsboro, Oregon, specializes in the design and development of high-performance analog and mixed-signal integrated circuits for energy-efficient power conversion. The company's products are used to convert and regulate electrical power in a wide range of applications, from consumer electronics and industrial systems to communications equipment and electric vehicle charging. By providing compact, reliable, and highly integrated solutions, Power Integrations aims to reduce system size, improve efficiency, and simplify thermal management for its customers.

The firm's product portfolio encompasses isolated and non-isolated switching controllers for both AC-DC and DC-DC power conversion.

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