Power Integrations (NASDAQ:POWI) Shares Gap Up – Here’s Why

Power Integrations, Inc. (NASDAQ:POWI)’s stock price gapped up before the market opened 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 traded.

Analysts Set New Price Targets

POWI has been the subject of a number of analyst reports. Benchmark restated a “buy” rating and set a $78.00 price objective on shares of Power Integrations in a research report on Friday. Susquehanna lowered their target price on shares of Power Integrations from $80.00 to $77.00 and set a “positive” rating for the company in a research note on Thursday, November 7th. Finally, StockNews.com raised shares of Power Integrations from a “sell” rating to a “hold” rating in a research report on Thursday, November 14th. Three research analysts have rated the stock with a hold rating, four have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $78.00.

Power Integrations Price Performance

The firm’s fifty day moving average price is $62.59 and its two-hundred day moving average price is $63.40. The stock has a market cap of $3.39 billion, a price-to-earnings ratio of 90.41, a price-to-earnings-growth ratio of 4.06 and a beta of 1.11.

Power Integrations (NASDAQ:POWI) last announced its quarterly earnings results on Thursday, February 6th. The semiconductor company reported $0.16 earnings per share (EPS) for the quarter, missing the consensus estimate 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, equities research analysts anticipate that Power Integrations, Inc. will post 0.54 earnings per share for the current year.

Power Integrations Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, December 31st. Shareholders of record on Friday, November 29th were paid a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a yield of 1.41%. 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. Power Integrations’s payout ratio is 147.37%.

Insider Buying and Selling at Power Integrations

In related news, CEO Balu Balakrishnan sold 12,507 shares of the firm’s stock in a transaction dated Tuesday, February 4th. The shares were sold at an average price of $60.64, for a total transaction of $758,424.48. Following the transaction, the chief executive officer now directly owns 600,002 shares of the company’s stock, valued at $36,384,121.28. This trade represents a 2.04 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Clifford Walker sold 10,000 shares of the stock in a transaction dated Wednesday, November 27th. The shares were sold at an average price of $64.36, for a total transaction of $643,600.00. Following the completion of the sale, the vice president now owns 130,934 shares of the company’s stock, valued at approximately $8,426,912.24. This trade represents a 7.10 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 38,680 shares of company stock valued at $2,420,526. Corporate insiders own 1.70% of the company’s stock.

Institutional Trading of Power Integrations

Institutional investors and hedge funds have recently modified their holdings of the business. Wellington Management Group LLP increased its holdings in Power Integrations by 25.6% during the third quarter. Wellington Management Group LLP now owns 2,340,328 shares of the semiconductor company’s stock worth $150,062,000 after buying an additional 476,986 shares during the last quarter. Copeland Capital Management LLC lifted its stake in Power Integrations by 21.5% in the third quarter. Copeland Capital Management LLC now owns 1,207,121 shares of the semiconductor company’s stock valued at $77,401,000 after purchasing an additional 213,392 shares during the last quarter. M&G PLC bought a new position in Power Integrations during the third quarter valued at $9,820,000. Raymond James Financial Inc. bought a new stake in shares of Power Integrations in the fourth quarter valued at $7,470,000. Finally, Barclays PLC lifted its position in shares of Power Integrations by 173.4% during the 3rd quarter. Barclays PLC now owns 180,754 shares of the semiconductor company’s stock valued at $11,591,000 after buying an additional 114,644 shares during 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.