Is Power Integrations Inc (POWI) A Good Stock to Buy?

Judging by the fact that Power Integrations Inc (NASDAQ:POWI) has sustained bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there was a specific group of hedgies who sold off their full holdings by the end of the third quarter. It’s worth mentioning that George Soros’ Soros Fund Management dumped the largest investment of the 700 funds tracked by Insider Monkey, valued at an estimated $6.6 million in stock. David Costen Haley’s fund, HBK Investments, also dumped its stock, about $0.4 million worth.

Let’s now take a look at hedge fund activity in other stocks similar to Power Integrations Inc (NASDAQ:POWI). These stocks are Semtech Corporation (NASDAQ:SMTC), South State Corporation (NASDAQ:SSB), RBC Bearings Incorporated (NASDAQ:ROLL), and Forum Energy Technologies Inc (NYSE:FET). This group of stocks’ market caps are closest to POWI’s market cap.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $71 million. That figure was $109 million in POWI’s case. Semtech Corporation (NASDAQ:SMTC) is the most popular stock in this table. On the other hand RBC Bearings Incorporated (NASDAQ:ROLL) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Power Integrations Inc (NASDAQ:POWI) is even less popular than ROLL. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock.

Disclosure: None