Monolithic Power Systems, Inc. (NASDAQ:MPWR) Stock Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts have a “Moderate Buy” consensus on Monolithic Power Systems, with 13 buy ratings and three holds among 16 brokerages. The average 12-month price target is $1,735.50.
• The company’s latest quarterly results exceeded expectations, with adjusted EPS of $6.50 versus a $5.87 estimate and revenue of $980.64 million versus $903.30 million expected; revenue increased 47.6% year over year.
• MPWR pays a quarterly dividend of $2.00 per share, equivalent to an annualized $8.00 dividend and a 0.6% yield. Institutional investors own 93.46% of the company, while insiders have sold shares in recent months.

Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the sixteen brokerages that are covering the firm, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold recommendation and thirteen have given a buy recommendation to the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $1,735.50.

A number of brokerages recently issued reports on MPWR. Zacks Research lowered Monolithic Power Systems from a "strong-buy" rating to a "hold" rating in a report on Friday, October 2nd. TD Cowen reaffirmed a "buy" rating on shares of Monolithic Power Systems in a research note on Monday, October 5th. Truist Financial lifted their target price on Monolithic Power Systems from $1,805.00 to $1,889.00 and gave the company a "buy" rating in a research note on Friday, July 31st. KeyCorp boosted their price target on 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. Finally, Needham & Company LLC increased their price target on Monolithic Power Systems from $1,750.00 to $2,000.00 and gave the stock a "buy" rating in a research note on Friday, July 31st.

Monolithic Power Systems Trading Up 3.5%

NASDAQ MPWR opened at $1,253.66 on Tuesday. Monolithic Power Systems has a 52 week low of $833.18 and a 52 week high of $1,714.09. The stock has a market cap of $61.60 billion, a price-to-earnings ratio of 76.86 and a beta of 1.68. The company has a 50-day moving average price of $1,301.39 and a two-hundred day moving average price of $1,395.09.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The semiconductor company reported $6.50 EPS for the quarter, beating the consensus estimate of $5.87 by $0.63. The company had revenue of $980.64 million for the quarter, compared to analyst estimates of $903.30 million. Monolithic Power Systems had a net margin of 24.41% and a return on equity of 22.31%. Monolithic Power Systems's revenue was up 47.6% compared to the same quarter last year. During the same quarter last year, the business earned $4.21 earnings per share. As a group, equities research analysts expect that Monolithic Power Systems will post 23.95 earnings per share for the current fiscal year.

Monolithic Power Systems Dividend Announcement

The business 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. This represents a $8.00 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Wednesday, September 30th. Monolithic Power Systems's payout ratio is currently 49.05%.

Insider Transactions at Monolithic Power Systems

In related news, Director Kuo Wei Chang sold 50 shares of the company'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 $660,008.55. This represents a 8.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, 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 transaction of $40,318.20. Following the completion of the sale, the executive vice president directly owned 1,119 shares of the company's stock, valued at $1,503,868.86. The trade was a 2.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 130 shares of company stock worth $175,397. Company insiders own 3.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in MPWR. BlackRock Inc. acquired a new position in Monolithic Power Systems in the second quarter valued at about $7,727,289,000. Bank of America Corp DE bought a new stake in Monolithic Power Systems during the second quarter worth about $741,271,000. Legal & General Group Plc bought a new stake in Monolithic Power Systems during the second quarter worth about $497,561,000. Royal Bank of Canada grew its stake in Monolithic Power Systems by 168.1% during the first quarter. Royal Bank of Canada now owns 473,368 shares of the semiconductor company's stock worth $517,557,000 after buying an additional 296,788 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new position in shares of Monolithic Power Systems in the second quarter valued at approximately $402,414,000. Institutional investors and hedge funds 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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