What Happened:

Shares of semiconductor designer Power Integrations (NASDAQ:POWI) jumped 8.7% in the after-market session after the company reported first-quarter results that beat analysts' estimates for revenue, and earnings per share. However, gross margin and free cash flow missed. Revenue guidance for the next quarter came in above Consensus estimates. It was a positive quarter for the company, with management adding that "reduction in distributor inventories combined with improved order trends indicates that while end-market demand remains subdued, revenues have bottomed and a cyclical recovery is underway."

What is the market telling us:

Power Integrations's shares are not very volatile than the market average and over the last year have had only 14 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. The previous big move was 4 days ago, when the company gained 5.06% on the news that 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.

Power Integrations is up 9.26% since the beginning of the year, but at $78.44 per share it is still trading 13.5% 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, 210.

Is now the time to buy Power Integrations? Access our full analysis of the earnings results here, it's free.