Monolithic Power Systems, Inc. (MPWR) - What Are Investment Firms Thinking About This Stock?

Key Points

• Analyst sentiment is broadly positive: Sixteen brokerages give Monolithic Power Systems an average “Buy” rating, and their average 12-month price target is $1,783.77. Recent target changes varied, with KeyCorp raising its target to $2,100 and Oppenheimer cutting its target to $1,500.
• Quarterly results beat expectations: The company reported earnings of $8.19 per share versus a $7.79 consensus estimate, while revenue of $1.20 billion topped expectations and rose 63.1% year over year.
• Shares and dividend: MPWR traded at $1,390.54 in the reported Friday session, within a 52-week range of $833.18 to $1,714.09. Its quarterly dividend of $2 per share equates to an annualized yield of 0.6%.

Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report) has earned an average recommendation of "Buy" from the sixteen brokerages that are covering the company, MarketBeat reports. One investment analyst has rated the stock with a hold recommendation, fourteen have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $1,783.77.

Several analysts recently issued reports on the stock. Wall Street Zen raised shares of Monolithic Power Systems from a "hold" rating to a "buy" rating in a report on Sunday, October 25th. KeyCorp increased their price target on shares of Monolithic Power Systems from $2,000.00 to $2,100.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Oppenheimer cut their price objective on Monolithic Power Systems from $1,700.00 to $1,500.00 and set an "outperform" rating on the stock in a research note on Friday, October 23rd. Raymond James Financial reaffirmed an "outperform" rating on shares of Monolithic Power Systems in a report on Wednesday, August 12th. Finally, Needham & Company LLC reiterated a "buy" rating on shares of Monolithic Power Systems in a research report on Friday, October 30th.

Monolithic Power Systems Price Performance

MPWR traded down $56.86 during trading hours on Friday, reaching $1,390.54. 737,145 shares of the stock traded hands, compared to its average volume of 1,127,662. Monolithic Power Systems has a fifty-two week low of $833.18 and a fifty-two week high of $1,714.09. The company has a market cap of $67.82 billion, a price-to-earnings ratio of 76.78 and a beta of 1.71. The firm's fifty day simple moving average is $1,284.98 and its two-hundred day simple moving average is $1,324.28.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last announced its earnings results on Thursday, October 29th. The semiconductor company reported $8.19 earnings per share for the quarter, beating the consensus estimate of $7.79 by $0.40. Monolithic Power Systems had a return on equity of 25.23% and a net margin of 23.85%. The company had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.16 billion. During the same period last year, the firm earned $4.73 earnings per share. The company's revenue was up 63.1% on a year-over-year basis. On average, research analysts predict that Monolithic Power Systems will post 23.72 earnings per share for the current year.

Monolithic Power Systems Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were paid a dividend of $2.00 per share. The ex-dividend date was Wednesday, September 30th. This represents a $8.00 annualized dividend and a yield of 0.6%. Monolithic Power Systems's dividend payout ratio (DPR) is 44.17%.

Insiders Place Their Bets

In other Monolithic Power Systems news, Director Kuo Wei Chang sold 50 shares of Monolithic Power Systems stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $1,281.57, for a total value of $64,078.50. Following the completion of the transaction, the director directly owned 515 shares in the company, valued at $660,008.55. The trade was a 8.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Frank Anthony Balow III sold 20 shares of the company's stock in a transaction that occurred on Wednesday, November 11th. The shares were sold at an average price of $1,434.31, for a total value of $28,686.20. Following the transaction, the chief financial officer directly owned 2,921 shares of the company's stock, valued at $4,189,619.51. This trade represents a 0.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Monolithic Power Systems

Hedge funds and other institutional investors have recently modified their holdings of the company. WestEnd Advisors LLC raised its stake in Monolithic Power Systems by 2,000.0% during the 3rd quarter. WestEnd Advisors LLC now owns 21 shares of the semiconductor company's stock valued at $28,000 after acquiring an additional 20 shares in the last quarter. Transamerica Financial Advisors LLC acquired a new position in Monolithic Power Systems during the 2nd quarter valued at about $35,000. Danske Bank A S bought a new stake in shares of Monolithic Power Systems during the 2nd quarter worth about $36,000. Continuum Advisory LLC acquired a new position in shares of Monolithic Power Systems during the second quarter valued at approximately $43,000. Finally, GK Wealth Management LLC bought a new stake in Monolithic Power Systems during the third quarter worth approximately $43,000. Institutional investors and hedge funds own 93.46% of the company's stock.

Monolithic Power Systems Company Profile

Monolithic Power Systems, Inc. (MPS) designs, develops and markets semiconductor-based power management solutions. Its products include power management integrated circuits, DC-to-DC converters, power modules, battery chargers, LED drivers and motor drivers, which help control and convert electrical power in electronic systems. The company's products serve a range of markets, including computing and data storage, automotive, communications, consumer electronics and industrial applications. MPS sells to customers around the world through direct sales and distribution channels.

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