POWI Power Integrations Inc

Copeland Capital Management LLC increased its stake in Power Integrations, Inc. (NASDAQ:POWI) by 7.2% in Q3, now owning 1,276,860 shares valued at $51.34 million. Despite a significant dividend payout ratio of 270.97%, which raises sustainability concerns, Power Integrations declared a quarterly dividend of $0.21. The stock trades near $35.90 with a "Moderate Buy" consensus from analysts, who set an average target price of $60.

Power Integrations (NASDAQ:POWI) shareholders have seen a 54% decline in their investment over the last five years, despite a recent 12% jump in the last month. This underperformance is worse than the 38% annual drop in earnings per share over the same period. While the market sees a brighter future with a high P/E ratio, the total shareholder return, including dividends, still stands at a dismal -52% over five years.

Riverbridge Partners LLC has reduced its stake in Power Integrations (NASDAQ:POWI) by 8.3% in the third quarter of 2025, selling over 34,000 shares. Insider activity also shows a VP selling shares, while institutional investors generally increased their positions. Analyst ratings are mixed, with a "Moderate Buy" consensus and a $60 price target.

Congress Asset Management Co. significantly reduced its stake in Power Integrations (NASDAQ:POWI) by 17.4% in Q3, selling over 125,000 shares. This comes as Power Integrations surpassed quarterly earnings estimates and declared a $0.21 dividend per share, despite a high payout ratio. Insider selling activity also occurred, with a VP selling over 1,000 shares.

Power Integrations (NASDAQ:POWI) stock has declined 16% over the past three months, prompting a look into its weak fundamentals. The company's low Return on Equity (ROE) of 2.7%, significantly below the industry average of 11%, combined with a five-year net income decline of 30%, suggests poor profitability. A high payout ratio of 84% further limits capital for reinvestment, hindering future growth despite analyst expectations for earnings improvement.

Power Integrations' stock has declined 16% over the past three months, driven by weak fundamentals. The company's Return on Equity (ROE) is 2.7%, significantly below the industry average, which has contributed to a 30% decline in net income over five years. This is exacerbated by a high payout ratio, leaving little capital for reinvestment and ultimately hindering business growth.