Power Integrations (NASDAQ:POWI) Trading Down 6.3% – Here’s Why

Shares of Power Integrations, Inc. (NASDAQ:POWI) fell 6.3% on Friday . The company traded as low as $65.91 and last traded at $66.4160. 147,217 shares were traded during trading, a decline of 86% from the average daily volume of 1,035,390 shares. The stock had previously closed at $70.87.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on POWI. Northland Securities lowered Power Integrations from an “outperform” rating to a “market perform” rating and set a $46.00 target price for the company. in a research note on Monday, April 6th. Needham & Company LLC started coverage on shares of Power Integrations in a research report on Wednesday, June 10th. They issued a “buy” rating and a $90.00 price objective for the company. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of Power Integrations in a research note on Friday, May 8th. Stifel Nicolaus upped their target price on shares of Power Integrations from $82.00 to $95.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Finally, Susquehanna increased their price target on shares of Power Integrations from $70.00 to $85.00 and gave the company a “positive” rating in a research note on Friday, May 8th. Four analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $76.20.

Power Integrations Trading Down 10.5%

The company has a market cap of $3.54 billion, a price-to-earnings ratio of 211.54, a P/E/G ratio of 3.25 and a beta of 1.57. The stock has a 50 day moving average price of $76.57 and a two-hundred day moving average price of $60.62.

Power Integrations (NASDAQ:POWI) last released its quarterly earnings results on Thursday, May 7th. The semiconductor company reported $0.25 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.02. The company had revenue of $108.31 million for the quarter, compared to analyst estimates of $106.75 million. Power Integrations had a return on equity of 5.34% and a net margin of 3.72%.Power Integrations’s revenue was up 2.6% compared to the same quarter last year. During the same quarter last year, the firm posted $0.31 earnings per share. On average, equities analysts forecast that Power Integrations, Inc. will post 0.76 EPS for the current fiscal year.

Power Integrations Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, May 29th were paid a $0.215 dividend. This represents a $0.86 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date was Friday, May 29th. Power Integrations’s dividend payout ratio (DPR) is currently 286.67%.

Insider Activity at Power Integrations

In other news, Director Balu Balakrishnan sold 124,287 shares of Power Integrations stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $86.44, for a total value of $10,743,368.28. Following the completion of the transaction, the director owned 279,516 shares of the company’s stock, valued at $24,161,363.04. This trade represents a 30.78% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Sunil Gupta sold 15,894 shares of Power Integrations stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $82.18, for a total value of $1,306,168.92. Following the transaction, the vice president owned 71,239 shares of the company’s stock, valued at $5,854,421.02. The trade was a 18.24% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 334,772 shares of company stock valued at $27,322,535. 1.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Power Integrations

Hedge funds have recently added to or reduced their stakes in the stock. Snyder Capital Management L P increased its holdings in Power Integrations by 148.8% in the 4th quarter. Snyder Capital Management L P now owns 2,064,707 shares of the semiconductor company’s stock valued at $73,380,000 after buying an additional 1,234,981 shares during the period. Price T Rowe Associates Inc. MD increased its stake in Power Integrations by 1,885.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 943,365 shares of the semiconductor company’s stock valued at $33,528,000 after acquiring an additional 895,857 shares during the last quarter. M&T Bank Corp lifted its stake in Power Integrations by 3,635.7% during the fourth quarter. M&T Bank Corp now owns 748,555 shares of the semiconductor company’s stock worth $26,604,000 after purchasing an additional 728,517 shares during the last quarter. Wellington Management Group LLP boosted its holdings in shares of Power Integrations by 35.7% in the 3rd quarter. Wellington Management Group LLP now owns 2,261,281 shares of the semiconductor company’s stock valued at $90,926,000 after purchasing an additional 595,404 shares in the last quarter. Finally, State Street Corp increased its stake in shares of Power Integrations by 18.0% in the 4th quarter. State Street Corp now owns 3,400,970 shares of the semiconductor company’s stock valued at $120,870,000 after purchasing an additional 518,284 shares during the last quarter.

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.