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

Power Integrations (NASDAQ:POWI) had its price objective cut by Needham & Company LLC from $90.00 to $80.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has a “buy” rating on the semiconductor company’s stock. Needham & Company LLC’s price target would indicate a potential upside of 29.14% from the company’s current price.

Several other analysts also recently issued reports on POWI. Susquehanna increased their target price on Power Integrations from $70.00 to $85.00 and gave the company a “positive” rating in a report on Friday, May 8th. Stifel Nicolaus raised their target price on Power Integrations from $82.00 to $95.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Power Integrations in a report on Friday, May 8th. Zacks Research lowered Power Integrations from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 20th. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of Power Integrations in a research note on Friday, May 8th. Four analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $74.20.

Power Integrations Price Performance

Power Integrations stock opened at $61.95 on Thursday. Power Integrations has a fifty-two week low of $30.86 and a fifty-two week high of $91.18. The firm’s 50 day simple moving average is $74.56 and its 200-day simple moving average is $61.89. The company has a market cap of $3.45 billion, a P/E ratio of 206.51 and a beta of 1.58.

Power Integrations (NASDAQ:POWI) last issued its quarterly earnings results on Wednesday, August 5th. The semiconductor company reported $0.37 EPS for the quarter, beating the consensus estimate of $0.32 by $0.05. Power Integrations had a net margin of 3.72% and a return on equity of 5.34%. The business had revenue of $118.94 million during the quarter, compared to the consensus estimate of $117.44 million. During the same quarter in the prior year, the firm earned $0.35 EPS. The firm’s quarterly revenue was up 2.6% on a year-over-year basis. On average, analysts expect that Power Integrations will post 0.76 EPS for the current fiscal year.

Insider Buying and Selling at Power Integrations

In other news, Director Nicholas Brathwaite sold 1,728 shares of the business’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $86.62, for a total transaction of $149,679.36. Following the transaction, the director directly owned 22,226 shares in the company, valued at $1,925,216.12. The trade was a 7.21% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Sunil Gupta sold 6,860 shares of the company’s stock in a transaction on Friday, May 29th. The stock was sold at an average price of $83.67, for a total transaction of $573,976.20. Following the completion of the transaction, the vice president directly owned 64,379 shares in the company, valued at $5,386,590.93. This trade represents a 9.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 334,772 shares of company stock valued at $27,322,535 in the last quarter. Company insiders own 1.20% of the company’s stock.

Institutional Investors Weigh In On Power Integrations

Hedge funds and other institutional investors have recently made changes to their positions in the company. Covestor Ltd grew its position in shares of Power Integrations by 13.8% in the 4th quarter. Covestor Ltd now owns 2,064 shares of the semiconductor company’s stock valued at $73,000 after acquiring an additional 251 shares during the period. Baird Financial Group Inc. raised its holdings in shares of Power Integrations by 5.4% in the 1st quarter. Baird Financial Group Inc. now owns 5,053 shares of the semiconductor company’s stock valued at $255,000 after purchasing an additional 261 shares during the period. Cetera Investment Advisers raised its holdings in shares of Power Integrations by 2.7% in the 4th quarter. Cetera Investment Advisers now owns 12,972 shares of the semiconductor company’s stock valued at $461,000 after purchasing an additional 340 shares during the period. First National Bank of Omaha lifted its stake in Power Integrations by 0.8% in the 4th quarter. First National Bank of Omaha now owns 46,047 shares of the semiconductor company’s stock valued at $1,637,000 after purchasing an additional 366 shares during the last quarter. Finally, Orion Porfolio Solutions LLC lifted its stake in Power Integrations by 3.0% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 13,531 shares of the semiconductor company’s stock valued at $756,000 after purchasing an additional 389 shares during the last quarter.

Trending Headlines about Power Integrations

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.