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

Power Integrations, Inc. (NASDAQ:POWI) was down 17.1% during trading 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 traded hands during mid-day trading, a decline of 86% from the average daily volume of 940,281 shares. The stock had previously closed at $46.80.

Other equities analysts also recently issued reports about the stock. Stifel Nicolaus set a $62.00 target price on shares of Power Integrations in a research note on Thursday. Wall Street Zen raised shares of Power Integrations from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. Weiss Ratings upgraded Power Integrations from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, August 19th. Needham & Company LLC lowered their price target on Power Integrations from $80.00 to $65.00 and set a “buy” rating for the company in a report on Thursday. Finally, Williams Trading set a $80.00 price objective on Power Integrations in a research note 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. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $59.67.

Trending Headlines about Power Integrations

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

Several hedge funds and other institutional investors have recently added to or reduced their stakes in POWI. Heritage Family Offices LLP bought a new stake in shares of Power Integrations in the 3rd quarter valued at about $32,000. Harbor Investment Advisory LLC bought a new position in shares of Power Integrations during the 2nd quarter worth approximately $33,000. EverSource Wealth Advisors LLC raised its stake in shares of Power Integrations by 125.5% during the 1st quarter. EverSource Wealth Advisors LLC now owns 814 shares of the semiconductor company’s stock worth $42,000 after acquiring an additional 453 shares in the last quarter. Allworth Financial LP bought a new position in shares of Power Integrations during the 2nd quarter worth approximately $42,000. Finally, Global Retirement Partners LLC purchased a new stake in Power Integrations during the second quarter valued at approximately $44,000.

Power Integrations Price Performance

The company has a market cap of $2.20 billion, a PE ratio of 88.33 and a beta of 1.58. The stock’s 50-day moving average is $49.49 and its 200 day moving average is $58.61.

Power Integrations (NASDAQ:POWI) last issued its quarterly earnings results on Wednesday, November 4th. The semiconductor company reported $0.46 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.42 by $0.04. Power Integrations had a return on equity of 5.50% and a net margin of 5.58%. The business had revenue of $125.48 million for the quarter, compared to the consensus estimate of $126.03 million. During the same period in the prior year, the firm posted $0.36 earnings per share. The business’s quarterly revenue was up 5.5% on a year-over-year basis. On average, analysts expect that Power Integrations, Inc. will post 0.77 EPS for the current year.

Power Integrations Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Monday, November 30th will be paid a $0.2150 dividend. The ex-dividend date is Monday, November 30th. This represents a $0.86 dividend on an annualized basis and a yield of 2.2%. Power Integrations’s dividend payout ratio (DPR) is 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.