Power Integrations (NASDAQ:POWI) Shares Down 6.3% – Should You Sell?

Power Integrations, Inc. (NASDAQ:POWI) fell 6.3% during trading 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 Analysts Forecast Growth

A number of brokerages have recently commented on POWI. Zacks Research downgraded Power Integrations from a “strong-buy” rating to a “hold” rating in a research report on Monday. Weiss Ratings restated a “sell (d+)” rating on shares of Power Integrations in a report on Friday, May 8th. Susquehanna increased their target price on shares of Power Integrations from $70.00 to $85.00 and gave the stock a “positive” rating in a research report on Friday, May 8th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating on shares of Power Integrations in a research report on Friday, May 8th. Finally, Needham & Company LLC started coverage on shares of Power Integrations in a research note on Wednesday, June 10th. They issued a “buy” rating and a $90.00 target price for the company. Four investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $76.20.

Power Integrations Stock Down 7.4%

The firm has a market cap of $3.66 billion, a P/E ratio of 218.79, a price-to-earnings-growth ratio of 3.71 and a beta of 1.57. The business’s 50 day moving average is $76.77 and its 200-day moving average is $60.60.

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

Power Integrations Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th were given a dividend of $0.215 per share. This represents a $0.86 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date was Friday, May 29th. Power Integrations’s dividend payout ratio is presently 286.67%.

Insider Activity at Power Integrations

In related news, Director Balu Balakrishnan sold 124,287 shares of the company’s stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $86.44, for a total transaction of $10,743,368.28. Following the completion of the transaction, the director directly owned 279,516 shares in the company, valued at $24,161,363.04. This represents a 30.78% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Sunil Gupta sold 15,894 shares of the stock in a transaction on 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 completion of the sale, the vice president directly owned 71,239 shares in the company, valued at $5,854,421.02. This represents a 18.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 334,772 shares of company stock worth $27,322,535 in the last 90 days. 1.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Geneos Wealth Management Inc. increased its stake in shares of Power Integrations by 576.3% in the first quarter. Geneos Wealth Management Inc. now owns 629 shares of the semiconductor company’s stock valued at $32,000 after purchasing an additional 536 shares during the period. Harbor Investment Advisory LLC acquired a new position in shares of Power Integrations during the second quarter valued at $33,000. Kestra Advisory Services LLC bought a new stake in shares of Power Integrations during the fourth quarter valued at about $36,000. UMB Bank n.a. raised its position in shares of Power Integrations by 61.7% during the 4th quarter. UMB Bank n.a. now owns 1,074 shares of the semiconductor company’s stock worth $38,000 after buying an additional 410 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its stake in shares of Power Integrations by 125.5% in the 1st quarter. EverSource Wealth Advisors LLC now owns 814 shares of the semiconductor company’s stock worth $42,000 after acquiring an additional 453 shares during the period.

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.