Power Integrations (NASDAQ:POWI) Stock Price Down 5.6% After Insider Selling

Power Integrations, Inc. (NASDAQ:POWI)’s share price traded down 5.6% on Friday after an insider sold shares in the company. The stock traded as low as $45.70 and last traded at $44.54. 83,745 shares changed hands during mid-day trading, a decline of 91% from the average session volume of 898,710 shares. The stock had previously closed at $47.20.

Specifically, VP Sunil Gupta sold 2,168 shares of the stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $45.58, for a total transaction of $98,817.44. Following the sale, the vice president owned 95,766 shares in the company, valued at $4,365,014.28. This represents a 2.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Balu Balakrishnan sold 10,080 shares of Power Integrations stock in a transaction that occurred on Tuesday, February 3rd. The shares were sold at an average price of $44.75, for a total value of $451,080.00. Following the completion of the transaction, the director owned 575,331 shares of the company’s stock, valued at approximately $25,746,062.25. The trade was a 1.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In other news, Director Balu Balakrishnan sold 5,581 shares of the company’s stock in a transaction that occurred on Thursday, January 29th. The stock was sold at an average price of $46.59, for a total transaction of $260,018.79. Following the completion of the transaction, the director directly owned 585,206 shares of the company’s stock, valued at approximately $27,264,747.54. This represents a 0.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.

Analyst Upgrades and Downgrades

POWI has been the subject of a number of analyst reports. Zacks Research lowered Power Integrations from a “hold” rating to a “strong sell” rating in a research report on Wednesday, January 28th. Susquehanna raised their target price on Power Integrations from $50.00 to $53.00 and gave the company a “positive” rating in a research note on Thursday, January 22nd. Benchmark restated a “buy” rating and set a $55.00 price target on shares of Power Integrations in a research report on Friday. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Power Integrations in a report on Monday, December 29th. Three investment analysts have rated the stock with a Buy rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $61.00.

Power Integrations News Roundup

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

• Positive Sentiment: Q4 results topped estimates and management gave solid near‑term revenue guidance; EPS of $0.23 beat the $0.19 consensus and revenue of $103.2M was roughly in line while Q1 revenue guidance was set at $104M–$109M, supporting the shares. Read More.
• Positive Sentiment: The board raised the quarterly dividend to $0.215 (2.4% increase), maintaining a cash‑return signal that can appeal to income and value investors ahead of the Feb 27 ex‑dividend date.
• Positive Sentiment: Benchmark reaffirmed a “buy” rating and a $55 price target, which implies upside vs. recent levels and may attract momentum buyers. Read More.
• Positive Sentiment: Management announced a cost‑reduction program (about a 7% workforce reduction) and a renewed focus on industrial end‑market growth — a near‑term restructuring charge but potentially margin‑accretive over time. Read More.
• Neutral Sentiment: Board and leadership filings (including indemnification items) were disclosed; these are procedural for now and carry no immediate financial impact unless followed by further governance developments. Read More.
• Negative Sentiment: Insider selling: several executives and a director disclosed stock sales in early February (notable blocks by a director and VPs). Persistent insider selling can be perceived negatively even if for diversification or tax reasons. Read More.
• Negative Sentiment: Inventory levels increased in the quarter, raising a modest demand/mix concern that could pressure near‑term margins if channel conditions don’t normalize. Read More.

Power Integrations Price Performance

The firm’s fifty day moving average is $40.14 and its two-hundred day moving average is $41.72. The firm has a market cap of $2.62 billion, a price-to-earnings ratio of 121.39, a P/E/G ratio of 5.49 and a beta of 1.37.

Power Integrations (NASDAQ:POWI) last released its quarterly earnings results on Thursday, February 5th. The semiconductor company reported $0.23 EPS for the quarter, topping analysts’ consensus estimates of $0.19 by $0.04. The company had revenue of $103.20 million for the quarter, compared to the consensus estimate of $103.02 million. Power Integrations had a net margin of 4.98% and a return on equity of 5.09%. Power Integrations’s revenue was down 1.9% on a year-over-year basis. During the same period in the previous year, the firm earned $0.30 EPS. On average, equities analysts forecast that Power Integrations, Inc. will post 0.93 earnings per share for the current fiscal year.

Power Integrations Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, February 27th will be given a $0.215 dividend. This represents a $0.86 dividend on an annualized basis and a yield of 1.8%. This is a positive change from Power Integrations’s previous quarterly dividend of $0.21. The ex-dividend date is Friday, February 27th. Power Integrations’s payout ratio is currently 270.97%.

Hedge Funds Weigh In On Power Integrations

A number of institutional investors and hedge funds have recently added to or reduced their stakes in POWI. Vanguard Group Inc. lifted its holdings in shares of Power Integrations by 5.7% in the fourth quarter. Vanguard Group Inc. now owns 7,556,919 shares of the semiconductor company’s stock valued at $268,573,000 after buying an additional 409,643 shares during the period. State Street Corp raised its position in Power Integrations by 0.8% in the second quarter. State Street Corp now owns 2,663,326 shares of the semiconductor company’s stock worth $148,880,000 after acquiring an additional 21,983 shares in the last quarter. Wellington Management Group LLP lifted its holdings in Power Integrations by 35.7% in the 3rd quarter. Wellington Management Group LLP now owns 2,261,281 shares of the semiconductor company’s stock valued at $90,926,000 after acquiring an additional 595,404 shares during the last quarter. Copeland Capital Management LLC boosted its position in shares of Power Integrations by 7.2% during the 3rd quarter. Copeland Capital Management LLC now owns 1,276,860 shares of the semiconductor company’s stock valued at $51,343,000 after purchasing an additional 86,123 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its stake in shares of Power Integrations by 1.3% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,029,901 shares of the semiconductor company’s stock worth $41,408,000 after purchasing an additional 13,044 shares during the last quarter.

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.