Power Integrations (NASDAQ:POWI) Shares Gap Up – Should You Buy?

Power Integrations, Inc. (NASDAQ:POWI)’s share price gapped up prior to trading on Friday . The stock had previously closed at $60.75, but opened at $63.10. Power Integrations shares last traded at $60.82, with a volume of 233,132 shares.

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. StockNews.com raised shares of Power Integrations from a “sell” rating to a “hold” rating in a research note on Thursday, November 14th. Benchmark reiterated a “buy” rating and issued a $78.00 price objective on shares of Power Integrations in a research report on Friday. Finally, Susquehanna reduced their target price on shares of Power Integrations from $80.00 to $77.00 and set a “positive” rating on the stock in a research note on Thursday, November 7th. Three investment analysts have rated the stock with a hold rating, four have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $78.00.

Power Integrations Stock Down 1.8 %

The company has a market capitalization of $3.39 billion, a P/E ratio of 90.41, a P/E/G ratio of 4.06 and a beta of 1.11. The firm has a fifty day simple moving average of $62.59 and a 200-day simple moving average of $63.40.

Power Integrations (NASDAQ:POWI) last posted its earnings results on Thursday, February 6th. The semiconductor company reported $0.16 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.12). Power Integrations had a return on equity of 4.14% and a net margin of 9.27%. On average, sell-side analysts predict that Power Integrations, Inc. will post 0.54 earnings per share for the current fiscal year.

Power Integrations Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 31st. Investors of record on Friday, November 29th were paid a $0.21 dividend. The ex-dividend date of this dividend was Friday, November 29th. This is a positive change from Power Integrations’s previous quarterly dividend of $0.20. This represents a $0.84 dividend on an annualized basis and a yield of 1.41%. Power Integrations’s dividend payout ratio is presently 147.37%.

Insider Buying and Selling at Power Integrations

In other Power Integrations news, CEO Balu Balakrishnan sold 12,507 shares of the firm’s stock in a transaction on Tuesday, February 4th. The stock was sold at an average price of $60.64, for a total transaction of $758,424.48. Following the completion of the sale, the chief executive officer now owns 600,002 shares of the company’s stock, valued at $36,384,121.28. This trade represents a 2.04 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Sandeep Nayyar sold 5,152 shares of Power Integrations stock in a transaction dated Tuesday, February 4th. The stock was sold at an average price of $60.75, for a total transaction of $312,984.00. Following the sale, the chief financial officer now directly owns 110,394 shares of the company’s stock, valued at $6,706,435.50. The trade was a 4.46 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 38,680 shares of company stock valued at $2,420,526 in the last 90 days. 1.70% of the stock is currently owned by company insiders.

Institutional Trading of Power Integrations

Several institutional investors have recently added to or reduced their stakes in POWI. Global Alpha Capital Management Ltd. boosted its position in shares of Power Integrations by 5.7% in the fourth quarter. Global Alpha Capital Management Ltd. now owns 26,515 shares of the semiconductor company’s stock valued at $1,636,000 after acquiring an additional 1,440 shares during the period. Edgestream Partners L.P. grew its position in shares of Power Integrations by 44.5% during the 4th quarter. Edgestream Partners L.P. now owns 76,366 shares of the semiconductor company’s stock worth $4,712,000 after purchasing an additional 23,509 shares in the last quarter. Raymond James Financial Inc. bought a new position in shares of Power Integrations during the fourth quarter worth approximately $7,470,000. Proficio Capital Partners LLC acquired a new stake in shares of Power Integrations in the fourth quarter valued at approximately $2,120,000. Finally, M&T Bank Corp grew its position in Power Integrations by 28.9% during the fourth quarter. M&T Bank Corp now owns 53,672 shares of the semiconductor company’s stock worth $3,312,000 after buying an additional 12,037 shares in the last quarter.

Power Integrations Company Profile

Power Integrations, Inc designs, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide. The company provides a range of alternating current to direct current power conversion products that address power supply ranging from less than one watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, LED lighting, and various other consumer and industrial applications, as well as power conversion in high-power applications comprising industrial motors, solar and wind-power systems, electric vehicles, and high-voltage DC transmission systems.