Northland Securities Reaffirms “Underperform” Rating for Power Integrations (NASDAQ:POWI)

Power Integrations (NASDAQ:POWI)‘s stock had its “underperform” rating restated by investment analysts at Northland Securities in a research note issued on Monday, MarketBeat reports. They presently have a $70.00 price target on the semiconductor company’s stock. Northland Securities’ price objective points to a potential downside of 23.12% from the stock’s current price.

The analysts wrote, “We are downgrading POWI due to overly optimistic expectations for POWI’s growth in cellphone chargers. We note POWI is working with all the major phone makers. Cellphone chargers is POWI’s lowest margin business, it is a highly competitive market, POWI in the past has not sacrificed GM for growth. Moreover, we believe Chinese OEMs are designing out US silicon and we expect the charger market will be impacted first. Shares are trading 50% above its historic peak out year P/E multiple.””

A number of other equities research analysts also recently commented on the stock. Stifel Nicolaus set a $129.00 price objective on shares of Columbia Sportswear and gave the company a “buy” rating in a research report on Friday, July 26th. Zacks Investment Research reissued a “hold” rating on shares of Western New England Bancorp in a research report on Saturday, June 29th. Deutsche Bank set a $129.00 price objective on shares of Proofpoint and gave the company a “hold” rating in a research report on Friday, July 26th. BidaskClub downgraded shares of Woodward, Inc.Common Stock from a “strong-buy” rating to a “buy” rating in a research report on Saturday. Finally, Loop Capital reissued a “hold” rating and issued a $76.00 price objective on shares of Power Integrations in a research report on Tuesday, June 18th. One research analyst has rated the stock with a sell rating, three have given a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $81.20.

Power Integrations stock opened at $91.05 on Monday. The firm has a market cap of $2.67 billion, a price-to-earnings ratio of 42.55 and a beta of 1.29. Power Integrations has a 52-week low of $47.35 and a 52-week high of $102.38. The business’s 50 day simple moving average is $79.25.

Power Integrations (NASDAQ:POWI) last released its earnings results on Thursday, July 25th. The semiconductor company reported $0.56 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.53 by $0.03. Power Integrations had a net margin of 14.79% and a return on equity of 9.87%. The company had revenue of $102.87 million for the quarter, compared to analyst estimates of $100.04 million. During the same period in the prior year, the business earned $0.74 EPS. The firm’s quarterly revenue was down 6.0% on a year-over-year basis. On average, analysts anticipate that Power Integrations will post 1.66 EPS for the current fiscal year.

In related news, VP Doug Bailey sold 1,000 shares of the stock in a transaction on Monday, June 3rd. The shares were sold at an average price of $65.31, for a total value of $65,310.00. Following the transaction, the vice president now directly owns 59,298 shares of the company’s stock, valued at approximately $3,872,752.38. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Sandeep Nayyar sold 5,000 shares of the stock in a transaction on Friday, May 3rd. The shares were sold at an average price of $79.94, for a total transaction of $399,700.00. Following the completion of the transaction, the chief financial officer now directly owns 82,512 shares in the company, valued at $6,596,009.28. The disclosure for this sale can be found here. Over the last three months, insiders sold 7,000 shares of company stock worth $547,010. Insiders own 4.10% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Dimensional Fund Advisors LP grew its position in shares of Power Integrations by 6.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 762,181 shares of the semiconductor company’s stock valued at $46,478,000 after buying an additional 46,081 shares during the last quarter. Norges Bank purchased a new position in shares of Power Integrations in the 4th quarter valued at $27,710,000. Copeland Capital Management LLC grew its position in shares of Power Integrations by 20.8% in the 2nd quarter. Copeland Capital Management LLC now owns 452,373 shares of the semiconductor company’s stock valued at $36,272,000 after buying an additional 77,882 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Power Integrations by 5.3% in the 4th quarter. Geode Capital Management LLC now owns 344,793 shares of the semiconductor company’s stock valued at $21,025,000 after buying an additional 17,356 shares during the last quarter. Finally, Vaughan Nelson Investment Management L.P. grew its position in shares of Power Integrations by 56.8% in the 1st quarter. Vaughan Nelson Investment Management L.P. now owns 258,490 shares of the semiconductor company’s stock valued at $18,079,000 after buying an additional 93,600 shares during the last quarter. 97.65% of the stock is currently owned by hedge funds and other institutional investors.

About Power Integrations

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 worldwide. The company offers a range of alternating current to direct current (DC) power conversion products that address power supply ranging from less than 1 watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, and other consumer and industrial applications, as well as light-emitting diode lighting.

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