Monolithic Power Systems (NASDAQ:MPWR) Stock Price Target Cut by TD Cowen

Key Points

• TD Cowen lowered Monolithic Power Systems’ price target to $1,700 from $1,850 while maintaining a “buy” rating, implying 35.6% upside from the prior close. Analysts overall rate the stock “Moderate Buy,” with an average target of $1,724.79.
• Monolithic Power Systems reported quarterly EPS of $6.50, beating the $5.87 consensus estimate, while revenue rose 47.6% year over year to $980.64 million, above expectations.
• The stock opened at $1,253.66, with a $61.6 billion market capitalization and a 12-month range of $833.18 to $1,714.09. Institutional investors own 93.46% of the company, while insiders sold $175,397 worth of shares over the past three months.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) had its price objective cut by TD Cowen from $1,850.00 to $1,700.00 in a report released on Monday, Benzinga reports. The brokerage presently has a "buy" rating on the semiconductor company's stock. TD Cowen's price target would suggest a potential upside of 35.60% from the company's previous close.

Several other equities research analysts have also commented on MPWR. Zacks Research lowered Monolithic Power Systems from a "strong-buy" rating to a "hold" rating in a research report on Friday, October 2nd. Rosenblatt Securities reiterated a "neutral" rating and issued a $1,575.00 target price on shares of Monolithic Power Systems in a report on Friday, July 31st. KeyCorp boosted their price target on Monolithic Power Systems from $2,000.00 to $2,100.00 and gave the company an "overweight" rating in a research note on Friday, July 31st. Arete Research assumed coverage on Monolithic Power Systems in a research note on Thursday, August 20th. They issued a "buy" rating and a $2,013.00 price target on the stock. Finally, Weiss Ratings upgraded Monolithic Power Systems from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, October 8th. Thirteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, Monolithic Power Systems currently has an average rating of "Moderate Buy" and an average price target of $1,724.79.

Monolithic Power Systems Stock Up 3.5%

MPWR stock opened at $1,253.66 on Monday. The firm has a market cap of $61.60 billion, a price-to-earnings ratio of 76.86 and a beta of 1.68. The company's fifty day simple moving average is $1,301.39 and its 200 day simple moving average is $1,395.09. Monolithic Power Systems has a 12-month low of $833.18 and a 12-month high of $1,714.09.

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 for the quarter, topping analysts' consensus estimates of $5.87 by $0.63. Monolithic Power Systems had a return on equity of 22.31% and a net margin of 24.41%. The firm had revenue of $980.64 million during the quarter, compared to the consensus estimate of $903.30 million. During the same period last year, the business posted $4.21 EPS. The business's revenue was up 47.6% compared to the same quarter last year. Research analysts expect that Monolithic Power Systems will post 23.95 earnings per share for the current year.

Insider Transactions at Monolithic Power Systems

In other news, EVP Maurice Sciammas sold 30 shares of the firm's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $1,343.94, for a total value of $40,318.20. Following the completion of the sale, the executive vice president directly owned 1,119 shares in the company, valued at $1,503,868.86. This trade represents a 2.61% decrease in their position. 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 firm's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $1,281.57, for a total value of $64,078.50. Following the completion of the sale, the director owned 515 shares of the company's stock, valued at approximately $660,008.55. This represents a 8.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 130 shares of company stock worth $175,397 in the last three months. Insiders own 3.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in Monolithic Power Systems during the second quarter valued at about $7,727,289,000. State Street Corp boosted its position in Monolithic Power Systems by 4.3% during the second quarter. State Street Corp now owns 2,282,186 shares of the semiconductor company's stock worth $3,159,219,000 after purchasing an additional 93,732 shares during the period. Van ECK Associates Corp increased its stake in shares of Monolithic Power Systems by 42.3% in the second quarter. Van ECK Associates Corp now owns 746,237 shares of the semiconductor company's stock worth $1,031,568,000 after purchasing an additional 221,666 shares in the last quarter. Bank of America Corp DE purchased a new position in shares of Monolithic Power Systems in the second quarter worth about $741,271,000. Finally, Royal Bank of Canada increased its stake in shares of Monolithic Power Systems by 168.1% in the first quarter. Royal Bank of Canada now owns 473,368 shares of the semiconductor company's stock worth $517,557,000 after purchasing an additional 296,788 shares in the last quarter. Institutional investors own 93.46% of the company's stock.

About Monolithic Power Systems

Monolithic Power Systems, Inc NASDAQ: MPWR is a semiconductor company that designs, develops and markets high-performance power-management solutions. Its products help regulate, convert, distribute and control electrical power in electronic systems, supporting applications that require efficient and reliable power delivery.

The company's portfolio includes integrated circuits, power modules, battery-management products, motor drivers, LED drivers and related analog and mixed-signal semiconductor solutions.

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