Power Integrations (NASDAQ:POWI) Shares Down 17.1% After Analyst Downgrade

Power Integrations, Inc. (NASDAQ:POWI) fell 17.1% on Thursday after Susquehanna lowered their price target on the stock from $70.00 to $55.00. Susquehanna currently has a positive rating on the stock. Power Integrations traded as low as $38.52 and last traded at $38.8010. Approximately 130,132 shares were traded during mid-day trading, a decline of 86% from the average session volume of 940,281 shares. The stock had previously closed at $46.80.

A number of other research firms have also recently commented on POWI. Needham & Company LLC cut their price objective on Power Integrations from $80.00 to $65.00 and set a “buy” rating for the company in a research report on Thursday. Weiss Ratings upgraded Power Integrations from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Wednesday, August 19th. Stifel Nicolaus set a $62.00 price target on shares of Power Integrations in a research note on Thursday. Zacks Research cut shares of Power Integrations from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 20th. Finally, Williams Trading set a $80.00 price target on shares of Power Integrations in a report on Thursday, August 6th. Four research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $59.67.

Power Integrations News Roundup

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

• Positive Sentiment: Q3 earnings were $0.46 per share, above analyst expectations of $0.41–$0.42 and up from $0.36 a year earlier. Revenue rose 5.5% year over year to $125.48 million, and a report noted improving inventory levels. Q3 earnings report Inventory report
• Positive Sentiment: Management is targeting a doubling of its served addressable market by 2031, with GaN-related growth among the opportunities highlighted. Market opportunity and guidance
• Positive Sentiment: The company declared a quarterly dividend of $0.215 per share, equivalent to $0.86 annually (about a 1.8% yield at the cited price).
• Neutral Sentiment: Susquehanna cut its price target to $55 from $70 but retained a positive rating; Needham lowered its target to $65 from $80 while maintaining a Buy rating. The lower targets temper the outlook, though both firms still see potential upside from the cited $39.90 price. Susquehanna rating Needham rating
• Negative Sentiment: Q3 revenue came in slightly below expectations, and Q4 revenue guidance of $118 million–$126 million suggests a sequential decline from Q3’s $125.48 million. That near-term softness may offset the earnings beat and longer-term growth plans. Q4 revenue outlook

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Teachers Retirement System of The State of Kentucky boosted its stake in Power Integrations by 180.9% during the 1st quarter. Teachers Retirement System of The State of Kentucky now owns 37,011 shares of the semiconductor company’s stock worth $1,895,000 after purchasing an additional 23,837 shares during the last quarter. Emerald Mutual Fund Advisers Trust acquired a new stake in shares of Power Integrations in the first quarter valued at about $3,138,000. Calamos Advisors LLC acquired a new stake in shares of Power Integrations in the first quarter valued at about $1,181,000. Emerald Advisers LLC purchased a new position in shares of Power Integrations in the first quarter worth about $5,941,000. Finally, Copeland Capital Management LLC lifted its stake in shares of Power Integrations by 12.6% in the first quarter. Copeland Capital Management LLC now owns 1,321,789 shares of the semiconductor company’s stock worth $67,676,000 after buying an additional 147,882 shares in the last quarter.

Power Integrations Price Performance

The stock has a market capitalization of $2.20 billion, a PE ratio of 88.33 and a beta of 1.58. The company’s 50 day moving average price is $49.49 and its two-hundred day moving average price is $58.61.

Power Integrations (NASDAQ:POWI) last announced its quarterly earnings data on Wednesday, November 4th. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.42 by $0.04. The company had revenue of $125.48 million during the quarter, compared to analysts’ expectations of $126.03 million. Power Integrations had a net margin of 5.58% and a return on equity of 5.50%. Power Integrations’s revenue was up 5.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.36 EPS. Analysts forecast that Power Integrations, Inc. will post 0.77 earnings per share for the current year.

Power Integrations Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Monday, November 30th will be issued a dividend of $0.2150 per share. This represents a $0.86 annualized dividend and a dividend yield of 2.2%. The ex-dividend date is Monday, November 30th. Power Integrations’s payout ratio is currently 191.11%.

About Power Integrations

Power Integrations, Inc designs and manufactures high-performance semiconductor technologies used in energy-efficient power conversion. Its products help convert and control electrical power in applications such as consumer electronics, appliances, industrial equipment, communications infrastructure, renewable-energy systems, and electric vehicles.

The company’s product portfolio includes integrated circuits for AC-to-DC and DC-to-DC power supplies, LED lighting drivers, power-factor correction, motor drives, and high-voltage gate driving.