Eurizon SLJ Capital Ltd Makes New Investment in Monolithic Power Systems, Inc. $MPWR

Key Points

• Eurizon SLJ Capital opened a new position in Monolithic Power Systems during the fourth quarter, buying 5,668 shares worth about $5.1 million. The stake now represents about 2% of the fund’s holdings.
• Institutional ownership remains very high, with hedge funds and other investors holding about 93.46% of MPWR shares. Several firms added to positions recently, including large moves from SG Americas Securities and First Trust Advisors.
• Insiders have been selling shares, including EVP Maurice Sciammas and Director Jeff Zhou, while the stock trades near its 52-week high. The company also reported strong quarterly results, beating EPS and revenue estimates, but the stock’s valuation remains a concern with a high P/E ratio and mixed analyst sentiment.

Eurizon SLJ Capital Ltd acquired a new position in shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 5,668 shares of the semiconductor company's stock, valued at approximately $5,137,000. Monolithic Power Systems comprises approximately 2.0% of Eurizon SLJ Capital Ltd's holdings, making the stock its 18th largest position.

Several other institutional investors have also recently bought and sold shares of MPWR. SG Americas Securities LLC raised its holdings in Monolithic Power Systems by 77,483.1% during the fourth quarter. SG Americas Securities LLC now owns 262,231 shares of the semiconductor company's stock worth $237,676,000 after buying an additional 261,893 shares during the last quarter. First Trust Advisors LP raised its holdings in Monolithic Power Systems by 66.4% during the third quarter. First Trust Advisors LP now owns 447,801 shares of the semiconductor company's stock worth $412,263,000 after buying an additional 178,622 shares during the last quarter. Rafferty Asset Management LLC raised its holdings in Monolithic Power Systems by 36.1% during the second quarter. Rafferty Asset Management LLC now owns 529,124 shares of the semiconductor company's stock worth $386,991,000 after buying an additional 140,269 shares during the last quarter. Vanguard Group Inc. raised its holdings in Monolithic Power Systems by 2.3% during the third quarter. Vanguard Group Inc. now owns 6,074,033 shares of the semiconductor company's stock worth $5,591,998,000 after buying an additional 134,087 shares during the last quarter. Finally, Marshall Wace LLP acquired a new position in Monolithic Power Systems during the third quarter worth $121,658,000. Institutional investors and hedge funds own 93.46% of the company's stock.

Insider Buying and Selling

In other news, EVP Maurice Sciammas sold 12,000 shares of the stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $1,561.40, for a total value of $18,736,800.00. Following the completion of the sale, the executive vice president owned 166,644 shares in the company, valued at $260,197,941.60. This represents a 6.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jeff Zhou sold 486 shares of the stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $1,680.00, for a total transaction of $816,480.00. Following the completion of the sale, the director owned 3,800 shares of the company's stock, valued at approximately $6,384,000. This represents a 11.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 113,043 shares of company stock valued at $160,829,940 over the last 90 days. 3.40% of the stock is currently owned by company insiders.

Monolithic Power Systems News Roundup

Here are the key news stories impacting Monolithic Power Systems this week:

• Negative Sentiment: EVP Saria Tseng disclosed a sale of 7,565 shares at an average price of $1,700, trimming her position by about 5%. Insiders at Monolithic Power have been actively selling lately, which can signal that management sees less near-term upside. Article Title
• Negative Sentiment: Director Jeff Zhou also sold 486 shares at $1,680, continuing a recent pattern of insider selling at MPWR. Multiple insider sales in a short period often pressure sentiment, even if the amounts are small relative to total holdings. Article Title
• Negative Sentiment: Separate coverage noted that insiders have sold roughly $515 million of Monolithic Power stock, reinforcing concerns that the shares may be getting expensive after a strong run. Article Title
• Negative Sentiment: GuruFocus said MPWR still looks overvalued despite the recent rally, adding to valuation anxiety as the stock trades near its highs. Article Title

Monolithic Power Systems Price Performance

Shares of MPWR stock opened at $1,566.21 on Friday. The firm has a 50-day moving average of $1,411.52 and a 200-day moving average of $1,161.77. The company has a market cap of $76.95 billion, a P/E ratio of 112.92, a P/E/G ratio of 2.92 and a beta of 1.74. Monolithic Power Systems, Inc. has a one year low of $643.36 and a one year high of $1,714.09.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last announced its earnings results on Thursday, April 30th. The semiconductor company reported $5.10 EPS for the quarter, beating the consensus estimate of $4.90 by $0.20. The company had revenue of $804.19 million during the quarter, compared to the consensus estimate of $781.93 million. Monolithic Power Systems had a net margin of 22.84% and a return on equity of 19.58%. The firm's revenue for the quarter was up 26.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $4.04 earnings per share. As a group, research analysts expect that Monolithic Power Systems, Inc. will post 20.13 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. Needham & Company LLC upped their price objective on shares of Monolithic Power Systems from $1,300.00 to $1,750.00 and gave the stock a "buy" rating in a report on Friday, May 1st. William Blair restated an "outperform" rating on shares of Monolithic Power Systems in a report on Thursday, March 5th. Weiss Ratings downgraded shares of Monolithic Power Systems from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday. Raymond James Financial restated an "outperform" rating and set a $1,800.00 price objective on shares of Monolithic Power Systems in a report on Friday, May 1st. Finally, TD Cowen increased their target price on shares of Monolithic Power Systems from $1,550.00 to $1,850.00 and gave the company a "buy" rating in a report on Friday, May 1st. Twelve analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, Monolithic Power Systems currently has an average rating of "Moderate Buy" and an average price target of $1,599.17.

Monolithic Power Systems Profile

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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