Zacks Investment Research cut shares of Power Integrations (NASDAQ:POWI) from a hold rating to a strong sell rating in a report issued on Thursday.
According to Zacks, “Power Integrations, Inc. is a supplier of high-performance electronic components used in high-voltage power-conversion systems. Their integrated circuits and diodes enable compact, energy-efficient AC-DC power supplies for a vast range of electronic products including mobile devices, TVs, PCs, appliances, smart utility meters and LED lights. Their SCALE IGBT drivers enhance the efficiency, reliability and cost of high-power applications such as industrial motor drives, solar and wind energy systems, electric vehicles and high-voltage DC transmission. Since its introduction, Power Integrations’ EcoSmart® energy-efficiency technology has prevented billions of dollars’ worth of energy waste and millions of tons of carbon emissions. Reflecting the environmental benefits of their products, Power Integrations’ stock is a member of clean-technology stock indices sponsored by Cleantech Group LLC and Clean Edge. “
Several other analysts have also weighed in on POWI. BidaskClub lowered Power Integrations from a sell rating to a strong sell rating in a report on Wednesday. Sidoti lowered Power Integrations from a buy rating to a neutral rating in a report on Friday, February 2nd. Susquehanna Bancshares assumed coverage on Power Integrations in a report on Wednesday, December 13th. They issued a neutral rating and a $80.00 price objective for the company. They noted that the move was a valuation call. Finally, Drexel Hamilton restated a buy rating and issued a $84.00 price objective on shares of Power Integrations in a report on Friday, October 27th. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating and two have assigned a buy rating to the company. The company has a consensus rating of Hold and an average price target of $81.40.
Power Integrations (NASDAQ:POWI) last announced its quarterly earnings data on Thursday, February 1st. The semiconductor company reported $0.74 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.72 by $0.02. The business had revenue of $108.20 million during the quarter, compared to analyst estimates of $110.50 million. Power Integrations had a return on equity of 12.70% and a net margin of 6.39%. The company’s revenue was up 5.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.67 earnings per share. research analysts expect that Power Integrations will post 2 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Friday, March 30th. Stockholders of record on Wednesday, February 28th will be given a dividend of $0.16 per share. The ex-dividend date is Tuesday, February 27th. This is a positive change from Power Integrations’s previous quarterly dividend of $0.14. This represents a $0.64 dividend on an annualized basis and a dividend yield of 1.04%. Power Integrations’s payout ratio is 62.22%.
Power Integrations announced that its Board of Directors has initiated a share repurchase program on Thursday, February 1st that authorizes the company to buyback $30.00 million in outstanding shares. This buyback authorization authorizes the semiconductor company to repurchase shares of its stock through open market purchases. Shares buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.
In other news, CFO Sandeep Nayyar sold 2,022 shares of the business’s stock in a transaction on Monday, January 29th. The stock was sold at an average price of $77.50, for a total transaction of $156,705.00. Following the sale, the chief financial officer now directly owns 58,522 shares of the company’s stock, valued at $4,535,455. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Steven Sharp sold 10,000 shares of the business’s stock in a transaction on Thursday, November 16th. The stock was sold at an average price of $79.49, for a total value of $794,900.00. The disclosure for this sale can be found here. Insiders have sold 35,076 shares of company stock worth $2,648,561 over the last ninety days. 4.30% of the stock is owned by insiders.
A number of large investors have recently bought and sold shares of the stock. Advisor Group Inc. increased its position in Power Integrations by 14.5% in the 2nd quarter. Advisor Group Inc. now owns 1,827 shares of the semiconductor company’s stock worth $132,000 after purchasing an additional 231 shares during the last quarter. Ameritas Investment Partners Inc. raised its holdings in shares of Power Integrations by 6.3% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 2,519 shares of the semiconductor company’s stock worth $184,000 after buying an additional 150 shares in the last quarter. Jane Street Group LLC acquired a new position in shares of Power Integrations in the 3rd quarter worth approximately $205,000. GSA Capital Partners LLP acquired a new position in shares of Power Integrations in the 2nd quarter worth approximately $208,000. Finally, Koch Industries Inc. acquired a new position in shares of Power Integrations in the 2nd quarter worth approximately $209,000. 96.82% of the stock is currently owned by hedge funds and other institutional investors.
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Power Integrations Company Profile
Power Integrations, Inc designs, develops and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion. The Company’s products are used in power converters that convert electricity from a high-voltage source to the type of power required for downstream use.
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