Stifel Nicolaus Forecasts Strong Price Appreciation for Power Integrations (NASDAQ:POWI) Stock

Key Points

• Stifel Nicolaus raised its price target on Power Integrations to $62 and kept a "buy" rating — implying about a 13% upside — while other analysts are mixed (Benchmark raised to $65; Northland cut to market perform), leaving a MarketBeat consensus rating of "Hold" with a $56.50 target.
• Recent results were a modest beat: Q4 EPS was $0.23 versus $0.19 expected and revenue matched estimates at $103.2M, but revenue was down 1.9% year‑over‑year and margins/ROE remain thin (net margin 4.98%, ROE 5.15%).
• Insiders have been net sellers (41,831 shares sold worth ~$1.94M in the last three months) even as institutions like Invesco boosted their stakes significantly, and the stock trades near $54.87 with a high P/E of ~141 and $3.05B market cap.

Power Integrations (NASDAQ:POWI - Get Free Report) had its price objective lifted by research analysts at Stifel Nicolaus from $56.00 to $62.00 in a report released on Thursday,Benzinga reports. The brokerage presently has a "buy" rating on the semiconductor company's stock. Stifel Nicolaus' target price suggests a potential upside of 12.99% from the stock's current price.

Several other research analysts have also recently issued reports on POWI. Northland Securities cut Power Integrations from an "outperform" rating to a "market perform" rating and set a $46.00 price objective for the company. in a research report on Monday, April 6th. Weiss Ratings reiterated a "sell (d)" rating on shares of Power Integrations in a research report on Monday, December 29th. Benchmark raised their price target on Power Integrations from $55.00 to $65.00 and gave the company a "buy" rating in a research report on Monday, April 6th. Zacks Research upgraded Power Integrations from a "strong sell" rating to a "hold" rating in a research report on Thursday, February 26th. Finally, Susquehanna raised their price target on Power Integrations from $50.00 to $53.00 and gave the company a "positive" rating in a research report on Thursday, January 22nd. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Power Integrations currently has an average rating of "Hold" and a consensus target price of $56.50.

Power Integrations Stock Performance

NASDAQ:POWI opened at $54.87 on Thursday. The stock has a fifty day moving average price of $48.72 and a two-hundred day moving average price of $42.57. The stock has a market capitalization of $3.05 billion, a price-to-earnings ratio of 140.70, a PEG ratio of 4.10 and a beta of 1.30. Power Integrations has a 1 year low of $30.86 and a 1 year high of $60.12.

Power Integrations (NASDAQ:POWI - Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.19 by $0.04. The firm had revenue of $103.20 million during the quarter, compared to analysts' expectations of $103.02 million. Power Integrations had a return on equity of 5.15% and a net margin of 4.98%.Power Integrations's revenue was down 1.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.30 earnings per share. On average, analysts predict that Power Integrations will post 0.93 EPS for the current year.

Insider Transactions at Power Integrations

In other news, VP Sunil Gupta sold 2,168 shares of the firm's stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $45.58, for a total value of $98,817.44. Following the completion of the transaction, the vice president owned 95,766 shares in the company, valued at $4,365,014.28. This trade represents a 2.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Balu Balakrishnan sold 10,080 shares of the stock in a transaction on Tuesday, February 3rd. The shares were sold at an average price of $44.75, for a total value of $451,080.00. Following the sale, the director directly owned 575,331 shares in the company, valued at approximately $25,746,062.25. The trade was a 1.72% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 41,831 shares of company stock worth $1,936,896. Corporate insiders own 1.40% of the company's stock.

Institutional Trading of Power Integrations

A number of large investors have recently made changes to their positions in the stock. Invesco Ltd. boosted its stake in shares of Power Integrations by 80.9% during the fourth quarter. Invesco Ltd. now owns 242,853 shares of the semiconductor company's stock valued at $8,631,000 after acquiring an additional 108,599 shares during the last quarter. Vident Advisory LLC boosted its stake in shares of Power Integrations by 13.0% during the fourth quarter. Vident Advisory LLC now owns 11,697 shares of the semiconductor company's stock valued at $416,000 after acquiring an additional 1,349 shares during the last quarter. State of Tennessee Department of Treasury boosted its stake in shares of Power Integrations by 6.4% during the fourth quarter. State of Tennessee Department of Treasury now owns 12,400 shares of the semiconductor company's stock valued at $441,000 after acquiring an additional 744 shares during the last quarter. Fuller & Thaler Asset Management Inc. boosted its stake in shares of Power Integrations by 20.7% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 26,362 shares of the semiconductor company's stock valued at $937,000 after acquiring an additional 4,520 shares during the last quarter. Finally, XTX Topco Ltd acquired a new stake in shares of Power Integrations during the fourth quarter valued at $483,000.

About Power Integrations

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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