BlackRock Inc. Makes New $7.73 Billion Investment in Monolithic Power Systems, Inc. $MPWR

Key Points

• BlackRock acquired 5.59 million shares of Monolithic Power Systems during the second quarter, investing approximately $7.73 billion and securing an 11.38% stake. Institutional investors and hedge funds collectively own 93.46% of the company.
• Analysts remain broadly bullish, with the stock holding a “Moderate Buy” consensus rating and an average price target of $1,705.82. Several firms recently raised their targets, including Needham to $2,000.
• Monolithic Power Systems reported strong quarterly results, with EPS of $6.50 and revenue of $980.64 million, up 47.6% year over year and exceeding analyst estimates. The company also pays a quarterly dividend of $2 per share, representing a 0.6% yield.

BlackRock Inc. purchased a new stake in shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The fund purchased 5,589,925 shares of the semiconductor company's stock, valued at approximately $7,727,289,000. BlackRock Inc. owned about 11.38% of Monolithic Power Systems at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently bought and sold shares of MPWR. IFP Advisors Inc boosted its stake in Monolithic Power Systems by 171.4% during the third quarter. IFP Advisors Inc now owns 38 shares of the semiconductor company's stock worth $35,000 after buying an additional 24 shares during the period. Covestor Ltd lifted its stake in Monolithic Power Systems by 29.0% during the 4th quarter. Covestor Ltd now owns 40 shares of the semiconductor company's stock worth $36,000 after acquiring an additional 9 shares in the last quarter. Greenline Wealth Management LLC purchased a new position in Monolithic Power Systems during the 4th quarter valued at about $38,000. Sunbelt Securities Inc. increased its stake in Monolithic Power Systems by 233.3% during the first quarter. Sunbelt Securities Inc. now owns 40 shares of the semiconductor company's stock worth $44,000 after purchasing an additional 28 shares during the period. Finally, Essential Partners LLC boosted its stake in shares of Monolithic Power Systems by 30.3% in 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 period. 93.46% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on MPWR. Wells Fargo & Company upped their price objective 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. Truist Financial lifted their price objective 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. Needham & Company LLC upped their target price on shares of 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. Raymond James Financial reiterated an "outperform" rating on shares of Monolithic Power Systems in a research note on Wednesday, August 12th. Finally, Wall Street Zen raised shares of Monolithic Power Systems from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $1,705.82.

Monolithic Power Systems Trading Up 1.0%

MPWR stock opened at $1,415.99 on Tuesday. The company has a market capitalization of $69.59 billion, a P/E ratio of 86.82 and a beta of 1.69. The business has a 50 day simple moving average of $1,391.62 and a 200-day simple moving average of $1,342.90. Monolithic Power Systems, Inc. has a twelve month low of $800.97 and a twelve month high of $1,714.09.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last released 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. Monolithic Power Systems had a net margin of 24.41% and a return on equity of 22.31%. The firm had revenue of $980.64 million during the quarter, compared to the consensus estimate of $903.30 million. During the same quarter in the prior year, the firm earned $4.21 EPS. Monolithic Power Systems's revenue for the quarter was up 47.6% on a year-over-year basis. Research analysts predict that Monolithic Power Systems, Inc. will post 23.35 EPS for the current fiscal year.

Monolithic Power Systems Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th were paid a dividend of $2.00 per share. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $8.00 annualized dividend and a yield of 0.6%. Monolithic Power Systems's dividend payout ratio is currently 49.05%.

Insider Buying and Selling

In other news, Director Kuo Wei Herbert Chang sold 50 shares of the business's stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $1,420.00, for a total value of $71,000.00. Following the transaction, the director owned 565 shares of the company's stock, valued at approximately $802,300. The trade was a 8.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Saria Tseng sold 7,565 shares of the company's stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $1,700.00, for a total value of $12,860,500.00. Following the sale, the executive vice president owned 144,218 shares of the company's stock, valued at $245,170,600. This trade represents a 4.98% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 13,191 shares of company stock valued at $21,807,015 over the last 90 days. Insiders own 3.60% of the company's stock.

About Monolithic Power Systems

Monolithic Power Systems NASDAQ: MPWR is a fabless semiconductor company that designs and supplies high-performance power management solutions for a broad range of electronic systems. Founded in 1997 and headquartered in Kirkland, Washington, the company focuses on analog and mixed-signal integrated circuits that convert, regulate and monitor electrical power with an emphasis on efficiency, integration and power density.

MPS's product portfolio includes DC‑DC switching regulators, power modules, power management ICs (PMICs), LED drivers, battery-management ICs, motor drivers, and AC‑DC power solutions.

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