How to buy Power Integrations stock - 09 March

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How to buy Power Integrations stock

Own Power Integrations stock in just a few minutes.

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Power Integrations, Inc is a semiconductors business based in the US. Power Integrations shares (POWI) are listed on the NASDAQ and all prices are listed in US Dollars. Power Integrations employs 725 staff and has a trailing 12-month revenue of around USD$488.3 million.

How to buy shares in Power Integrations

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Power Integrations. Find the stock by name or ticker symbol: POWI. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Power Integrations reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Power Integrations, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Power Integrations. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Power Integrations share price

Use our graph to track the performance of POWI stocks over time.

Power Integrations shares at a glance

Information last updated 2021-03-03.
52-week rangeUSD$38.3051 - USD$98.9113
50-day moving average USD$90.2036
200-day moving average USD$71.18
Wall St. target priceUSD$96.33
PE ratio 74.6581
Dividend yield USD$0.42 (0.46%)
Earnings per share (TTM) USD$1.17

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Power Integrations stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Is Power Integrations under- or over-valued?

Valuing Power Integrations stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Power Integrations's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Power Integrations's P/E ratio

Power Integrations's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 75x. In other words, Power Integrations shares trade at around 75x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Power Integrations's PEG ratio

Power Integrations's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.7. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Power Integrations's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Power Integrations's EBITDA

Power Integrations's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$98.6 million.

The EBITDA is a measure of a Power Integrations's overall financial performance and is widely used to measure a its profitability.

Power Integrations financials

Revenue TTM USD$488.3 million
Operating margin TTM 14.44%
Gross profit TTM USD$243.6 million
Return on assets TTM 5.16%
Return on equity TTM 9.27%
Profit margin 14.58%
Book value $13.527
Market capitalisation USD$5.2 billion

TTM: trailing 12 months

Shorting Power Integrations shares

There are currently 1.7 million Power Integrations shares held short by investors – that's known as Power Integrations's "short interest". This figure is 7.3% up from 1.5 million last month.

There are a few different ways that this level of interest in shorting Power Integrations shares can be evaluated.

Power Integrations's "short interest ratio" (SIR)

Power Integrations's "short interest ratio" (SIR) is the quantity of Power Integrations shares currently shorted divided by the average quantity of Power Integrations shares traded daily (recently around 461269.44444444). Power Integrations's SIR currently stands at 3.6. In other words for every 100,000 Power Integrations shares traded daily on the market, roughly 3600 shares are currently held short.

However Power Integrations's short interest can also be evaluated against the total number of Power Integrations shares, or, against the total number of tradable Power Integrations shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Power Integrations's short interest could be expressed as 0.03% of the outstanding shares (for every 100,000 Power Integrations shares in existence, roughly 30 shares are currently held short) or 0.0377% of the tradable shares (for every 100,000 tradable Power Integrations shares, roughly 38 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Power Integrations.

Find out more about how you can short Power Integrations stock.

Power Integrations share dividends

27%

Dividend payout ratio: 26.61% of net profits

Recently Power Integrations has paid out, on average, around 26.61% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.57% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Power Integrations shareholders could enjoy a 0.57% return on their shares, in the form of dividend payments. In Power Integrations's case, that would currently equate to about $0.42 per share.

While Power Integrations's payout ratio might seem fairly standard, it's worth remembering that Power Integrations may be investing much of the rest of its net profits in future growth.

Power Integrations's most recent dividend payout was on 31 March 2021. The latest dividend was paid out to all shareholders who bought their shares by 25 February 2021 (the "ex-dividend date").

Have Power Integrations's shares ever split?

Power Integrations's shares were split on a 2:1 basis on 19 August 2020. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Power Integrations shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Power Integrations shares which in turn could have impacted Power Integrations's share price.

Power Integrations share price volatility

Over the last 12 months, Power Integrations's shares have ranged in value from as little as $38.3051 up to $98.9113. A popular way to gauge a stock's volatility is its "beta".

POWI.US volatility(beta: 0.99)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Power Integrations's is 0.9877. This would suggest that Power Integrations's shares are less volatile than average (for this exchange).

Power Integrations overview

Power Integrations, Inc. designs, develops, manufactures, 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 power conversion products that address power supply ranging from less than one 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, LED lighting, and other consumer and industrial applications. It also provides high-voltage diodes; and high-voltage gate-driver products under the SCALE and SCALE-2 product-family names. In addition, the company offers motor-driver ICs for use in refrigerator compressors, ceiling fans, and air purifiers, as well as pumps, fans, and blowers used in consumer appliances, such as dishwashers and laundry machines. It serves communications, computer, consumer, and industrial markets. The company sells its products to original equipment manufacturers and merchant power supply manufacturers through sales personnel, as well as a network of independent sales representatives and distributors. Power Integrations, Inc. was founded in 1988 and is headquartered in San Jose, California.

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