Bank of America Corp DE Makes New $741.27 Million Investment in Monolithic Power Systems, Inc. $MPWR

Key Points

• Bank of America purchased 536,236 shares of Monolithic Power Systems worth approximately $741.3 million, acquiring a 1.09% stake. Institutional investors collectively own 93.46% of the company.
• Analysts remain broadly positive, with one Strong Buy, twelve Buy, and two Hold ratings; the consensus rating is “Moderate Buy,” with an average price target of $1,731.42.
• Monolithic Power Systems beat quarterly expectations, reporting $6.50 in EPS and $980.64 million in revenue, up 47.6% year over year. The company also declared a quarterly dividend of $2 per share, equal to a 0.7% annual yield.

Bank of America Corp DE purchased a new position in shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 536,236 shares of the semiconductor company's stock, valued at approximately $741,271,000. Bank of America Corp DE owned 1.09% of Monolithic Power Systems at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. BlackRock Inc. acquired a new stake in shares of Monolithic Power Systems during the second quarter worth $7,727,289,000. Corient Private Wealth LLC increased its holdings in Monolithic Power Systems by 3,719.6% during the 4th quarter. Corient Private Wealth LLC now owns 2,047,173 shares of the semiconductor company's stock worth $1,855,476,000 after purchasing an additional 1,993,576 shares in the last quarter. Invesco Ltd. increased its holdings in Monolithic Power Systems by 25.9% during the 4th quarter. Invesco Ltd. now owns 1,434,689 shares of the semiconductor company's stock worth $1,300,345,000 after purchasing an additional 295,556 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of Monolithic Power Systems by 3.3% in the 4th quarter. Geode Capital Management LLC now owns 1,382,280 shares of the semiconductor company's stock valued at $1,248,436,000 after purchasing an additional 44,583 shares during the period. Finally, Norges Bank acquired a new stake in shares of Monolithic Power Systems in the 4th quarter valued at about $658,656,000. Institutional investors own 93.46% of the company's stock.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Needham & Company LLC boosted their price target on Monolithic Power Systems from $1,750.00 to $2,000.00 and gave the company a "buy" rating in a report on Friday, July 31st. Wall Street Zen upgraded Monolithic Power Systems from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Raymond James Financial restated an "outperform" rating on shares of Monolithic Power Systems in a research note on Wednesday, August 12th. Truist Financial upped their price target on Monolithic Power Systems from $1,805.00 to $1,889.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. Finally, Arete Research set a $2,013.00 price target on shares of Monolithic Power Systems and gave the stock a "buy" rating in a research note on Thursday, August 20th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $1,731.42.

Monolithic Power Systems Stock Performance

Shares of NASDAQ MPWR opened at $1,142.46 on Wednesday. The stock has a 50 day moving average price of $1,310.69 and a 200 day moving average price of $1,353.28. Monolithic Power Systems, Inc. has a 52 week low of $833.18 and a 52 week high of $1,714.09. The stock has a market capitalization of $56.14 billion, a PE ratio of 70.05 and a beta of 1.66.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The semiconductor company reported $6.50 earnings per share for the quarter, beating analysts' consensus estimates of $5.87 by $0.63. The firm had revenue of $980.64 million during the quarter, compared to the consensus estimate of $903.30 million. Monolithic Power Systems had a return on equity of 22.31% and a net margin of 24.41%.The business's revenue was up 47.6% compared to the same quarter last year. During the same period last year, the company earned $4.21 earnings per share. As a group, research analysts forecast that Monolithic Power Systems, Inc. will post 23.35 EPS for the current year.

Monolithic Power Systems Dividend Announcement

The company also recently declared 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. This represents a $8.00 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Wednesday, September 30th. Monolithic Power Systems's dividend payout ratio is 49.05%.

Insiders Place Their Bets

In other Monolithic Power Systems news, EVP Maurice Sciammas sold 30 shares of the stock in a transaction on Monday, August 3rd. The shares were 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 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 legal filing with the SEC, 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 shares were 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 directly owned 515 shares of the company's stock, valued at approximately $660,008.55. This trade represents a 8.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 160 shares of company stock valued at $215,945. Corporate insiders own 3.60% of the company's stock.

Monolithic Power Systems 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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