Monolithic Power Systems, Inc. (NASDAQ:MPWR) Stock Has Average Target Price of $1,731.42

Key Points

• Analysts remain broadly bullish: Monolithic Power Systems has a “Moderate Buy” consensus from 15 brokerages, with an average 12-month price target of $1,731.42 versus the reported share price of $1,335.55.
• Recent results exceeded expectations: Quarterly earnings came in at $6.50 per share, ahead of the $5.87 estimate, while revenue rose 47.6% year over year to $980.64 million.
• Shares offer limited income but strong institutional backing: The company declared a quarterly dividend of $2 per share, equivalent to a 0.6% yield, while institutional investors own 93.46% of outstanding stock; insiders have sold $215,945 worth of shares over the past 90 days.

Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the fifteen brokerages that are presently covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a hold rating, twelve have given a buy rating and one has issued a strong buy rating on the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $1,731.42.

A number of equities analysts recently commented on MPWR shares. KeyCorp raised their price objective 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. Wall Street Zen lowered Monolithic Power Systems from a "buy" rating to a "hold" rating in a report on Saturday, September 19th. Zacks Research upgraded Monolithic Power Systems from a "hold" rating to a "strong-buy" rating in a report on Thursday, June 18th. Wells Fargo & Company raised their target price on Monolithic Power Systems from $1,700.00 to $1,800.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Finally, Truist Financial lifted their price target on Monolithic Power Systems from $1,805.00 to $1,889.00 and gave the company a "buy" rating in a report on Friday, July 31st.

Insider Activity

In other news, EVP Maurice Sciammas sold 30 shares of the company'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 transaction, the executive vice president owned 1,119 shares in the company, valued at $1,503,868.86. This represents a 2.61% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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 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 transaction of $64,078.50. Following the completion of the sale, the director directly owned 515 shares of the company's stock, valued at $660,008.55. This trade represents a 8.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 160 shares of company stock worth $215,945. Company insiders own 3.60% of the company's stock.

Institutional Investors Weigh In On Monolithic Power Systems

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Transamerica Financial Advisors LLC purchased a new position in shares of Monolithic Power Systems during the 2nd quarter valued at $35,000. Danske Bank A S purchased a new stake in shares of Monolithic Power Systems during the second quarter worth $36,000. Continuum Advisory LLC purchased a new stake in shares of Monolithic Power Systems during the second quarter worth $43,000. Sunbelt Securities Inc. boosted its position in Monolithic Power Systems by 233.3% during the first quarter. Sunbelt Securities Inc. now owns 40 shares of the semiconductor company's stock valued at $44,000 after purchasing an additional 28 shares during the last quarter. Finally, Essential Partners LLC boosted its position in Monolithic Power Systems by 30.3% during the first quarter. Essential Partners LLC now owns 43 shares of the semiconductor company's stock valued at $47,000 after purchasing an additional 10 shares during the last quarter. Hedge funds and other institutional investors own 93.46% of the company's stock.

Monolithic Power Systems Trading Down 1.5%

MPWR stock opened at $1,335.55 on Friday. Monolithic Power Systems has a one year low of $833.18 and a one year high of $1,714.09. The firm has a market capitalization of $65.63 billion, a PE ratio of 81.89 and a beta of 1.66. The firm has a 50-day moving average of $1,301.00 and a two-hundred day moving average of $1,361.33.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last released its earnings results on Thursday, July 30th. The semiconductor company reported $6.50 earnings per share for the quarter, topping 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 business had revenue of $980.64 million for the quarter, compared to the consensus estimate of $903.30 million. During the same period last year, the firm posted $4.21 earnings per share. The firm's quarterly revenue was up 47.6% compared to the same quarter last year. On average, equities research analysts anticipate that Monolithic Power Systems will post 23.35 earnings per share for the current year.

Monolithic Power Systems Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be given a dividend of $2.00 per share. The ex-dividend date is Wednesday, September 30th. This represents a $8.00 dividend on an annualized basis and a yield of 0.6%. Monolithic Power Systems's dividend payout ratio (DPR) is presently 49.05%.

Monolithic Power Systems Company Profile

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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