Power Integrations Sees Bullish Trend with KDJ Golden Cross and Marubozu Pattern

Power Integrations' 15-minute chart has exhibited a significant bullish trend, as evidenced by the KDJ Golden Cross and Bullish Marubozu at 09/03/2025 13:15. This suggests that the momentum of the stock price is shifting towards the upside and has the potential to further increase. The control of buyers over the market is evident, and it is likely that the bullish momentum will continue.

Power Integrations' 15-minute chart has exhibited a significant bullish trend, as evidenced by the KDJ Golden Cross and Bullish Marubozu at 09/03/2025 13:15. This suggests that the momentum of the stock price is shifting towards the upside and has the potential to further increase. The control of buyers over the market is evident, and it is likely that the bullish momentum will continue.

The KDJ Golden Cross, a bullish signal, was triggered at 08/27/2025 12:15, indicating a shift in momentum towards the upside, suggesting a potential increase in the stock price. The presence of a Bullish Marubozu on the chart reinforces the notion of strong buyers controlling the market, with bullish momentum likely to persist [1].

Analysts have also been upgrading their price targets for Power Integrations, reflecting growing confidence in the company's prospects. Wells Fargo increased its target from $220.00 to $265.00, while JPMorgan raised its target from $271.00 to $288.00 [1]. Several other analysts, including Royal Bank Of Canada, Oppenheimer, and Robert W. Baird, have also issued "outperform" ratings and adjusted their price targets upwards [1].

Institutional investors have been modifying their holdings in Power Integrations as well. Aviso Financial Inc. lowered its holdings by 28.0% during the first quarter, but other investors, such as Portside Wealth Group LLC and Empower Advisory Group LLC, increased their stakes significantly. Principal Financial Group Inc. grew its position by 3,320.4% during the same period [1].

The company's financial performance has been strong, with Power Integrations reporting $0.88 earnings per share for the last quarter, exceeding estimates and showing a 22.0% increase in revenue from the previous year. The company's return on equity was 6.96%, and its net margin was 3.04%, reflecting improved operational efficiency [1].

Power Integrations' focus on cloud migration and AI integration is a key driver of its growth. In the second quarter of 2025, the company closed 12 new cloud deals, including the migration of the Texas Windstorm Insurance Association (TWIA) to its cloud platform [1]. The company's AI tools, such as Guidewire Predict and Quanti, aim to drive $1.8B in revenue by 2028, further enhancing its value proposition [1].

While Power Integrations' valuation remains high, with a trailing P/E ratio of 563.18 and a forward P/E of 433.22, the company's strategic execution may justify these premiums. The company's specialized focus on property and casualty (P&C) insurance software sets it apart from other tech stocks, providing a unique value proposition in a rapidly evolving market [2].

In conclusion, Power Integrations presents a decent buying opportunity for patient capital, driven by improving margin trends and a steady growth story. The company's strong financial performance and strategic execution may justify its premium pricing.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-aviso-financial-inc-has-939000-stock-position-in-guidewire-software-inc-gwre-2025-08-19/
[2] https://www.ainvest.com/news/guidewire-software-decent-buying-opportunity-patient-capital-valuations-remain-elevated-2508/