Power Integrations (NASDAQ:POWI) Shares Down 5.6% Following Insider Selling

Power Integrations, Inc. (NASDAQ:POWI)’s stock price was down 5.6% during mid-day trading on Friday following insider selling activity. The company traded as low as $45.70 and last traded at $44.54. Approximately 83,745 shares were traded during trading, a decline of 91% from the average daily volume of 898,710 shares. The stock had previously closed at $47.20.

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

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on POWI shares. Susquehanna increased their target price on Power Integrations from $50.00 to $53.00 and gave the stock a “positive” rating in a research report on Thursday, January 22nd. Benchmark restated a “buy” rating and issued a $55.00 price objective on shares of Power Integrations in a report on Friday. Zacks Research lowered Power Integrations from a “hold” rating to a “strong sell” rating in a research note on Wednesday, January 28th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Power Integrations in a research report on Monday, December 29th. Three equities research analysts have rated the stock with a Buy rating and two have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $61.00.

Trending Headlines about Power Integrations

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 Stock Performance

The firm has a fifty day moving average of $40.14 and a 200 day moving average of $41.64. The firm has a market capitalization of $2.62 billion, a PE ratio of 121.39, a P/E/G ratio of 5.50 and a beta of 1.37.

Power Integrations (NASDAQ:POWI) last released its 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 business 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%. The business’s revenue for the quarter was down 1.9% on a year-over-year basis. During the same period in the previous year, the firm earned $0.30 EPS. Research analysts forecast that Power Integrations, Inc. will post 0.93 earnings per share for the current fiscal year.

Power Integrations Increases Dividend

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

Institutional Investors Weigh In On Power Integrations

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

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.