Power Integrations' recent tax benefit may have inflated its profit levels, potentially masking its true earnings power. Future profitability could be impacted if such tax benefits aren't repeated. The decline in EPS over the last year is concerning.

The President of Power Integrations' recent share sale, even slightly below the current price, may indicate insiders believe the shares are fully valued. The lack of insider buying over the last year and insignificant share ownership by insiders do not provide a strong buying incentive.

The decreasing ROCE and increasing capital employed by Power Integrations, coupled with falling sales, are concerning trends. These factors do not bode well for the company's long-term performance, despite the recent rise in its stock price.

The recent selling of shares by insiders at Power Integrations without any insider purchases over the last year might raise caution among potential investors.

The downgrade in revenue estimates and EPS suggests potential headwinds for the Power Integrations' business. The reduced earning estimates and slowed revenue growth compared to wider industry rates may raise caution among investors and the market towards the company.

Q3 results are underwhelming with revenues short of Wall Street's estimates. While Power Integrations has a sturdy cash balance, its business strategy and growth prospects are questionable due to these results.