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Which Way Are Traders Betting This Stock Will Go: Power Integrations, Inc. (NASDAQ:POWI)? A Look at the Shorts

According to the latest data, investors are looking at Power Integrations, Inc. (NASDAQ:POWI)’s short data and trying to figure out market sentiment on which way the market thinks the stock is moving. The firm has 4.91% of total shares float short, yielding a short ratio of 5.75.

Stock market investing can sometimes become highly emotional. Being able to leave emotions out of the major investing decisions might be tricky, but it may end up being a portfolio savior down the road. Nobody wants to see a thoroughly researched stock pick underperform. Holding onto the hope that a certain stock has to bounce back may lead to later problems. Of course, it can be very hard for humans to admit when a mistake was made. Finding the ability to detach from a position can be tough. Humans make mistakes, but being able to learn from those mistakes moving forward can help with achieving long term success in the market.

When investors engage in short selling or “shorting a stock”, they actually borrow shares from an existing owner, sell the borrowed shares at market price, and take the cash.  The short sellers then promise to replace the stock in the future and makes dividend payments out of their own pockets to cover the dividend income that is no longer exists on the original, now borrowed and sold, shares.

Shorting a stock can be very risky if the price doesn’t decline like planned and, in fact, increases.  It’s important for any investor to understand the dangers and potentially catastrophic financial losses of short selling.

RECENT PERFORMANCE AND RECOMMENDATION

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, Power Integrations, Inc. (NASDAQ:POWI)’s stock was -21.48%.  Over the last week of the month, it was -1.60%, -20.62% over the last quarter, and  -19.46% for the past six months. 

Over the past 50 days, Power Integrations, Inc. stock’s -21.54% off of the high and 21.96% removed from the low.  Their 52-Week High and Low are noted here.  -29.62% away from the high and 21.96% from the low. 

One of the staple principles for investing is buy low and sell high. While this may sound obvious, many investors end up doing just the opposite. When dealing with the stock market, investors often have to be careful not to let their irrational side take over when making decisions. Investors may get caught up in the flurry when stocks are skyrocketing. The temptation to get on board and be part of the ride can lead to some ill-planned moves. Focusing on near-term movements might be included in the game plan for some, but for others, this may be distracting from the bigger picture and long-term plan. Stocks that become widely publicized and popular in the media may not be the right addition to the individual investor’s portfolio. Conducting the due diligence on any position can help the investor make sure that they are getting in at a good time and price.

The consensus analysts recommendation at this point stands at 3.00 on Power Integrations, Inc. (NASDAQ:POWI).  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell. The same analysts are predicting that the company shares will trade to $58.40 within the next 12-18 months. 

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