Power Integrations (NASDAQ:POWI) Price Target Lowered to $80.00 at Needham & Company LLC

Power Integrations (NASDAQ:POWI) had its target price reduced by stock analysts at Needham & Company LLC from $90.00 to $80.00 in a report released on Thursday,Benzinga reports. The firm presently has a “buy” rating on the semiconductor company’s stock. Needham & Company LLC’s price objective would suggest a potential upside of 29.14% from the company’s previous close.

A number of other brokerages have also commented on POWI. Susquehanna upped 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. Zacks Research downgraded shares of Power Integrations from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 20th. Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of Power Integrations in a report on Friday, May 8th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Power Integrations in a research report on Friday, May 8th. Finally, Stifel Nicolaus increased their target price on Power Integrations from $82.00 to $95.00 and gave the stock a “buy” rating in a research note on Wednesday, June 24th. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Power Integrations has a consensus rating of “Hold” and an average target price of $74.20.

Power Integrations Price Performance

Shares of Power Integrations stock opened at $61.95 on Thursday. The business has a fifty day simple moving average of $74.56 and a two-hundred day simple moving average of $61.89. Power Integrations has a 1 year low of $30.86 and a 1 year high of $91.18. The company has a market capitalization of $3.45 billion, a price-to-earnings ratio of 206.51 and a beta of 1.58.

Power Integrations (NASDAQ:POWI) last released its quarterly earnings data on Wednesday, August 5th. The semiconductor company reported $0.37 EPS for the quarter, beating the consensus estimate of $0.32 by $0.05. The firm had revenue of $118.94 million for the quarter, compared to the consensus estimate of $117.44 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% on a year-over-year basis. During the same period in the previous year, the company earned $0.35 earnings per share. As a group, equities analysts anticipate that Power Integrations will post 0.76 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Power Integrations news, Director Nicholas Brathwaite sold 6,895 shares of the business’s stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $72.41, for a total value of $499,266.95. Following the completion of the sale, the director owned 30,609 shares of the company’s stock, valued at $2,216,397.69. The trade was a 18.38% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Balu Balakrishnan sold 124,287 shares of the stock in a transaction that occurred 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 transaction, the director owned 279,516 shares in the company, valued at approximately $24,161,363.04. The trade was a 30.78% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 334,772 shares of company stock valued at $27,322,535. 1.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Power Integrations

Several institutional investors have recently made changes to their positions in POWI. Geneos Wealth Management Inc. raised its holdings in Power Integrations by 576.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 629 shares of the semiconductor company’s stock valued at $32,000 after acquiring an additional 536 shares in the last quarter. Harbor Investment Advisory LLC acquired a new stake in shares of Power Integrations during the 2nd quarter worth $33,000. Kestra Advisory Services LLC bought a new position in shares of Power Integrations in the fourth quarter worth $36,000. UMB Bank n.a. raised its stake in Power Integrations by 61.7% in the fourth quarter. UMB Bank n.a. now owns 1,074 shares of the semiconductor company’s stock valued at $38,000 after purchasing an additional 410 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its stake in Power Integrations by 125.5% in the first quarter. EverSource Wealth Advisors LLC now owns 814 shares of the semiconductor company’s stock valued at $42,000 after purchasing an additional 453 shares in the last quarter.

Power Integrations News Summary

Here are the key news stories impacting Power Integrations this week:

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Power Integrations reported adjusted earnings of $0.37 per share, above the $0.32 consensus estimate and up from $0.35 a year earlier. Revenue increased 2.6% year over year to $118.94 million, topping expectations of $117.44 million. Power Integrations Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Inventory conditions improved. Reports on the quarter highlighted improving inventory levels, a development that could support future shipments and reduce supply-chain pressure. Power Integrations Q2 Beats on Revenue, Inventory Levels Improve
• Positive Sentiment: New 2,200-volt GaN technology may expand long-term opportunities. Power Integrations demonstrated what it called the world’s first 2,200 V gallium-nitride technology for next-generation high-voltage power systems, potentially strengthening its technology position in industrial and power-conversion markets. Power Integrations Demonstrates 2200 V GaN Technology
• Neutral Sentiment: Third-quarter revenue guidance is broadly in line. Management forecast revenue of $122 million to $130 million, compared with analyst expectations of $125.6 million. The lack of clearly stronger guidance may limit enthusiasm following the earnings beat.
• Neutral Sentiment: Shareholders will receive another dividend. Power Integrations declared a quarterly dividend of $0.215 per share, payable September 30 to investors of record August 31. The annualized payout is $0.86 per share, implying a yield of approximately 1.4%; the ex-dividend date is August 31.
• Negative Sentiment: Valuation leaves little room for disappointment. With a reported price-to-earnings ratio above 200 and modest revenue growth, investors may be demanding faster growth or more optimistic guidance. That valuation pressure could outweigh the quarterly earnings beat.

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.