What Happened:
Shares of semiconductor designer Power Integrations (NASDAQ:POWI) jumped 5.06% in the morning session after analyst Gus Richard of Northland Capital Markets upgraded the stock's rating from Market Perform (Hold) to Outperform (Buy), and raised the price target from $66 to $82. The price target indicates a potential 10% gain from where the shares trade now. After the initial pop the shares cooled down to $74.47, up 2.42% from previous close.
What is the market telling us:
Power Integrations's shares are somewhat volatile and over the last year have had 16 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Power Integrations is up 3.82% since the beginning of the year, but at $74.47 per share it is still trading 17.9% below its 52-week high of $90.68 from February 2023. Investors who bought $1,000 worth of Power Integrations's shares 5 years ago would now be looking at an investment worth $2,160.
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