POWI Should I Buy
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Power Integrations Inc (POWI) is not a strong buy at the moment for a beginner, long-term investor. While there are some positive catalysts, such as improved dividend payouts and a bullish moving average trend, the company's recent financial performance shows declining revenue and net income. Additionally, insider selling and neutral hedge fund activity suggest limited confidence in the stock's near-term performance. The options data also indicates bearish sentiment with a high put-call ratio. For a long-term investor, it may be better to wait for stronger financial performance or clearer positive signals before investing.
The technical indicators present a mixed picture. The MACD is negative and expanding, suggesting bearish momentum. RSI is neutral at 52.556, indicating no clear overbought or oversold condition. However, moving averages are bullish (SMA_5 > SMA_20 > SMA_200), and the stock is trading near its pivot level of 46.417, with key resistance at 48.762 and support at 44.071.
Dividend increase of 2.4% reflects improved cash flow and profitability.
Bullish moving averages suggest a potential upward trend.
Analysts have raised price targets to $53 and $55, citing a steadying upcycle and strategic vision from new management.
Insider selling has increased by 254.97% over the last month, indicating potential lack of confidence.
Financial performance shows a YoY revenue decline of -1.94% and net income dropping to
Options data reflects bearish sentiment with high put-call ratios.
No recent congress trading data or significant hedge fund activity.
In Q4 2025, revenue dropped to $103.2 million (-1.94% YoY), and net income fell to 0 (-100% YoY). However, EPS improved to 0.39 (+143.75% YoY), and gross margin decreased slightly to 52.91% (-2.76% YoY). Overall, the financials indicate mixed performance with declining growth trends.
Analysts are generally positive on POWI, with Susquehanna raising the price target to $53 and Benchmark increasing it to $55 while adding the stock to its Best Ideas list for 2026. Analysts cite a steadying semiconductor upcycle, improved industrial markets, and new management's strategic vision as reasons for optimism.
