Fact Check: What’s wrong with Power Integrations, Inc. (POWI) today

The biggest losers of the session on the Wall Street include Power Integrations, Inc. (NASDAQ:POWI), which fell -3.04 points or -2.8% to trade at $105.51 as last check. The stock closed last session at $108.55 and sets an active trading volume day with a reported 109537 contracts so far this session. POWI shares had a relatively better volume day versus average trading capacity of 187.63 thousand shares, but with a 28.57 million float and a 2.91% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for POWI stock indicates that the average analyst price target is $99.2 per share. This means the stock has a potential decrease of -5.98% from where the POWI share price has been trading recently.

During the recent trading session for Power Integrations, Inc. (NASDAQ:POWI), the company witnessed their stock rise $2.46 over a week and surge $1.33 from the price 20 days ago. When compared to their established 52-week high of $111.56, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 11/02/20. The recent low of $64.95 stood for a -5.43% since 05/31/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.3 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Power Integrations, Inc., the two-week RSI stands at 55.87. This figure suggests that POWI stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current POWI readings is similarly very revealing as it has a stochastic reading of 76.85% at this stage. This figure means that POWI share price today is being oversold.

Technical chart claims that Power Integrations, Inc. (POWI) would settle between $109.4/share to $110.24/share level. However, if the stock price goes below the $107.56 mark, then the market for Power Integrations, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $106.56 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 1.94. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Loop Capital raised their recommendation on shares of POWI from Hold to Buy in their opinion released on October 25. Northland Capital analysts have lowered their rating of Power Integrations, Inc. (NASDAQ:POWI) stock from Market Perform to Under Perform in a separate flash note issued to investors on July 29. Analysts at Stifel released an upgrade from Hold to Buy for the stock, in a research note that dated back to July 18.

POWI equity has an average rating of 2.6, with the figure leaning towards a bullish end. 5 analysts who tracked the company were contacted by Reuters. Amongst them, 2 rated the stock as a hold while the remaining 3 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 2 analysts rated Power Integrations, Inc. (NASDAQ:POWI) as a buy or a strong buy while 1 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, POWI stock price is currently trading at 30X forward 12-month Consensus EPS estimates, and its P/E ratio is 16.7 while for the average stock in the same group, the multiple is 28.3. Power Integrations, Inc. current P/B ratio of 4.4 means it is trading at a discount against its industry’s 5.2.

Power Integrations, Inc. (POWI)’s current-quarter revenues are projected to climb by nearly 22.1% to hit $108880, based on current consensus estimate. The firm’s full-year revenues are expected to expand by over 13.2% from $420670 to a noteworthy $476140. At the other end of the current quarter income statement, Power Integrations, Inc. is expected to see its adjusted earnings surge by roughly 68.3% to hit $0.69 per share. For the fiscal year, POWI’s earnings are projected to climb by roughly 23.3% to hit $3.17 per share.