Monolithic Power Systems (NASDAQ:MPWR) Rating Lowered to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Monolithic Power Systems to “hold” from “buy,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $1,731.42.
• Monolithic Power Systems reported strong quarterly results, with EPS of $6.50 versus the $5.87 consensus and revenue of $980.64 million, up 47.6% year over year.
• Insiders sold 160 shares worth approximately $215,945 over the past 90 days, while institutional investors continued to hold a substantial 93.46% of the company’s stock.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Several other analysts have also issued reports on MPWR. Arete Research set a $2,013.00 price objective on Monolithic Power Systems and gave the company a "buy" rating in a research note on Thursday, August 20th. KeyCorp raised their price objective on Monolithic Power Systems from $2,000.00 to $2,100.00 and gave the stock an "overweight" rating in a research note on Friday, July 31st. Weiss Ratings lowered shares of Monolithic Power Systems from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, August 31st. Zacks Research upgraded shares of Monolithic Power Systems from a "hold" rating to a "strong-buy" rating in a research report on Thursday, June 18th. Finally, Rosenblatt Securities restated a "neutral" rating and set a $1,575.00 target price on shares of Monolithic Power Systems in a research note on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, Monolithic Power Systems presently has an average rating of "Moderate Buy" and an average price target of $1,731.42.

Monolithic Power Systems Stock Up 4.1%

NASDAQ:MPWR opened at $1,217.80 on Friday. The company has a market cap of $59.84 billion, a P/E ratio of 74.67 and a beta of 1.66. Monolithic Power Systems has a twelve month low of $833.18 and a twelve month high of $1,714.09. The business has a 50 day moving average price of $1,300.54 and a two-hundred day moving average price of $1,352.29.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The semiconductor company reported $6.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.87 by $0.63. Monolithic Power Systems had a net margin of 24.41% and a return on equity of 22.31%. The firm had revenue of $980.64 million for the quarter, compared to analyst estimates of $903.30 million. During the same period in the previous year, the business earned $4.21 EPS. The company's revenue was up 47.6% compared to the same quarter last year. As a group, analysts anticipate that Monolithic Power Systems will post 23.35 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Monolithic Power Systems news, EVP Maurice Sciammas sold 30 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $1,343.94, for a total value of $40,318.20. Following the sale, the executive vice president owned 1,119 shares in the company, valued at $1,503,868.86. This trade represents a 2.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kuo Wei Chang sold 50 shares of the business's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $1,281.57, for a total transaction of $64,078.50. Following the sale, the director directly owned 515 shares in the company, valued at approximately $660,008.55. The trade was a 8.85% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 160 shares of company stock worth $215,945. 3.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Monolithic Power Systems

Several hedge funds have recently modified their holdings of MPWR. Anchor Investment Management LLC raised its holdings in Monolithic Power Systems by 160.0% in the 2nd quarter. Anchor Investment Management LLC now owns 65 shares of the semiconductor company's stock valued at $90,000 after buying an additional 40 shares during the last quarter. The Manufacturers Life Insurance Company boosted its position in Monolithic Power Systems by 0.5% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 49,887 shares of the semiconductor company's stock worth $68,962,000 after buying an additional 233 shares during the period. IPG Investment Advisors LLC bought a new stake in Monolithic Power Systems during the 2nd quarter worth approximately $1,655,000. Whetstone Capital Advisors LLC acquired a new position in Monolithic Power Systems in the 2nd quarter valued at approximately $823,000. Finally, SVB Wealth LLC acquired a new position in Monolithic Power Systems in the 2nd quarter valued at approximately $205,000. Institutional investors and hedge funds own 93.46% of the company's stock.

About Monolithic Power Systems

Monolithic Power Systems, Inc NASDAQ: MPWR designs, develops and markets high-performance semiconductor solutions, with a focus on power management. Its products help regulate, convert and control electrical power in electronic systems, enabling more efficient operation in applications ranging from computing and communications equipment to automotive, industrial and consumer devices.

The company's portfolio includes DC-to-DC converters, power modules, battery chargers, power-management integrated circuits, motor drivers, LED drivers, voltage regulators and other analog semiconductor products.

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