Monolithic Power Systems (NASDAQ:MPWR) Stock Price Target Raised at Truist Financial

Key Points

• Truist Financial raised its MPWR price target to $1,906 from $1,889 and maintained a “buy” rating, implying 60.25% upside from the referenced share price.
• Monolithic Power Systems reported stronger-than-expected third-quarter results, with EPS of $8.19 versus $7.79 expected and revenue of approximately $1.20 billion, up 63.1% year over year.
• Analyst sentiment remains broadly positive, with 14 buy ratings and two holds, although the stock traded down 0.8% and insiders sold $175,397 worth of shares over the past quarter.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) had its price target increased by analysts at Truist Financial from $1,889.00 to $1,906.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage presently has a "buy" rating on the semiconductor company's stock. Truist Financial's target price indicates a potential upside of 60.25% from the company's current price.

A number of other equities analysts also recently weighed in on MPWR. KeyCorp lifted their target price on shares of 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. TD Cowen decreased their price target on Monolithic Power Systems from $1,850.00 to $1,700.00 and set a "buy" rating for the company in a report on Monday, October 19th. Oppenheimer lowered their price objective on Monolithic Power Systems from $1,700.00 to $1,500.00 and set an "outperform" rating for the company in a research report on Friday, October 23rd. Raymond James Financial reissued an "outperform" rating on shares of Monolithic Power Systems in a research report on Wednesday, August 12th. Finally, Rosenblatt Securities raised Monolithic Power Systems from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $1,575.00 to $1,700.00 in a research note on Friday. Fourteen analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, Monolithic Power Systems presently has an average rating of "Moderate Buy" and a consensus price target of $1,702.79.

Monolithic Power Systems Trading Down 0.8%

NASDAQ MPWR traded down $9.43 on Friday, hitting $1,189.38. 754,308 shares of the company's stock were exchanged, compared to its average volume of 732,891. The stock has a 50-day moving average of $1,276.68 and a 200-day moving average of $1,309.09. The stock has a market cap of $58.45 billion, a price-to-earnings ratio of 73.04 and a beta of 1.68. Monolithic Power Systems has a 52 week low of $833.18 and a 52 week high of $1,714.09.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The semiconductor company reported $8.19 EPS for the quarter, beating analysts' consensus estimates of $7.79 by $0.40. Monolithic Power Systems had a return on equity of 22.31% and a net margin of 24.41%. The firm had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.16 billion. During the same period last year, the firm posted $4.73 earnings per share. The business's revenue for the quarter was up 63.1% on a year-over-year basis. As a group, analysts predict that Monolithic Power Systems will post 23.95 earnings per share for the current year.

Insiders Place Their Bets

In other Monolithic Power Systems news, EVP Maurice Sciammas sold 30 shares of the stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $1,343.94, for a total transaction of $40,318.20. Following the completion of the transaction, 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 document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kuo Wei Chang sold 50 shares of Monolithic Power Systems stock in a transaction dated 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 completion of the transaction, the director owned 515 shares of the company's stock, valued at $660,008.55. The trade was a 8.85% decrease in their position. 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 over the last quarter. Company insiders own 3.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. BlackRock Inc. purchased a new stake in Monolithic Power Systems in the 2nd quarter worth approximately $7,727,289,000. State Street Corp boosted its holdings in Monolithic Power Systems by 4.3% in the 2nd quarter. State Street Corp now owns 2,282,186 shares of the semiconductor company's stock valued at $3,159,219,000 after purchasing an additional 93,732 shares during the period. Van ECK Associates Corp grew its position in shares of Monolithic Power Systems by 42.3% during the 2nd quarter. Van ECK Associates Corp now owns 746,237 shares of the semiconductor company's stock valued at $1,031,568,000 after purchasing an additional 221,666 shares in the last quarter. Bank of America Corp DE bought a new position in shares of Monolithic Power Systems in the second quarter worth $741,271,000. Finally, Royal Bank of Canada increased its holdings 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 during the period. 93.46% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Monolithic Power Systems

Here are the key news stories impacting Monolithic Power Systems this week:

• Positive Sentiment: Rosenblatt upgraded MPWR to “buy” from “neutral” and raised its price target to $1,700 from $1,575, implying substantial upside from the referenced share price. Rosenblatt Securities analyst upgrade
• Positive Sentiment: Third-quarter earnings and revenue exceeded expectations. MPWR reported adjusted EPS of $8.19 versus the $7.79 consensus estimate and revenue of approximately $1.20 billion versus $1.16 billion expected. Revenue increased 63.1% year over year, while EPS rose from $4.73 in the prior-year quarter. MPWR Q3 earnings beat
• Positive Sentiment: The company also provided fourth-quarter earnings guidance, giving investors an updated view of demand and near-term operating expectations. MPWR fourth-quarter guidance
• Neutral Sentiment: MPWR appointed Tony Balow as chief financial officer and Robert Dean as chief accounting officer, effective immediately. The leadership changes could improve financial oversight, but they also introduce a management-transition consideration for investors. MPWR CFO and CAO appointments
• Negative Sentiment: Rosen Law Firm announced an investigation into potential breaches of fiduciary duties by MPWR directors and officers. The announcement does not establish wrongdoing, but it adds legal and reputational uncertainty that may weigh on investor sentiment. Rosen Law Firm investigation
• Negative Sentiment: ETFs were reported as net sellers of MPWR, indicating some passive or systematic fund-flow pressure even as the company’s fundamental results improved. ETF selling of MPWR

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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