Monolithic Power Systems, Inc. $MPWR Shares Sold by Carderock Capital Management Inc.

Key Points

• Carderock Capital Management cut its Monolithic Power Systems stake by 11.7% in the second quarter, selling 1,364 shares and retaining 10,301 shares valued at approximately $14.24 million. Institutional investors collectively own 93.46% of MPWR.
• Monolithic Power Systems reported a strong quarter, with EPS of $6.50 versus the $5.87 consensus and revenue of $980.64 million, up 47.6% year over year and above estimates of $903.30 million.
• Wall Street remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $1,705.82, although the stock’s roughly 82 price-to-earnings ratio and recent insider selling highlight valuation risks.

Carderock Capital Management Inc. lowered its stake in Monolithic Power Systems, Inc. (NASDAQ:MPWR - Free Report) by 11.7% during the second quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 10,301 shares of the semiconductor company's stock after selling 1,364 shares during the quarter. Monolithic Power Systems makes up about 3.1% of Carderock Capital Management Inc.'s holdings, making the stock its 7th biggest position. Carderock Capital Management Inc.'s holdings in Monolithic Power Systems were worth $14,240,000 as of its most recent filing with the SEC.

A number of other large investors have also recently bought and sold shares of MPWR. Brighton Jones LLC increased its position in Monolithic Power Systems by 46.0% during the fourth quarter. Brighton Jones LLC now owns 635 shares of the semiconductor company's stock worth $376,000 after buying an additional 200 shares in the last quarter. Empowered Funds LLC raised its holdings in shares of Monolithic Power Systems by 3.1% in the first quarter. Empowered Funds LLC now owns 5,325 shares of the semiconductor company's stock worth $3,088,000 after acquiring an additional 161 shares during the last quarter. NewEdge Advisors LLC lifted its position in shares of Monolithic Power Systems by 3.5% in the second quarter. NewEdge Advisors LLC now owns 9,383 shares of the semiconductor company's stock valued at $6,863,000 after acquiring an additional 314 shares in the last quarter. Treasurer of the State of North Carolina lifted its position in shares of Monolithic Power Systems by 35.2% in the second quarter. Treasurer of the State of North Carolina now owns 35,789 shares of the semiconductor company's stock valued at $26,175,000 after acquiring an additional 9,315 shares in the last quarter. Finally, Globeflex Capital L P acquired a new stake in shares of Monolithic Power Systems during the second quarter valued at $347,000. Institutional investors and hedge funds own 93.46% of the company's stock.

Insider Activity at Monolithic Power Systems

In other Monolithic Power Systems news, Director Jeff Zhou sold 486 shares of Monolithic Power Systems stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $1,680.00, for a total value of $816,480.00. Following the transaction, the director owned 3,800 shares in the company, valued at $6,384,000. This trade represents a 11.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Maurice Sciammas sold 30 shares of the business's stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $1,351.61, for a total transaction of $40,548.30. Following the sale, the executive vice president directly owned 1,149 shares of the company's stock, valued at $1,552,999.89. This represents a 2.54% decrease in their ownership of the stock. 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 three months, insiders sold 25,111 shares of company stock worth $40,432,497. 3.60% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the company. TD Cowen lifted their price objective on Monolithic Power Systems from $1,550.00 to $1,850.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. Zacks Research upgraded shares of Monolithic Power Systems from a "hold" rating to a "strong-buy" rating in a report on Thursday, June 18th. Weiss Ratings cut shares of Monolithic Power Systems from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday. Stifel Nicolaus boosted their price objective on shares of Monolithic Power Systems from $1,300.00 to $1,500.00 and gave the company a "buy" rating in a research report on Thursday, April 16th. Finally, Truist Financial boosted their price objective on shares of Monolithic Power Systems from $1,805.00 to $1,889.00 and gave the company a "buy" rating in a research report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Monolithic Power Systems has a consensus rating of "Moderate Buy" and a consensus target price of $1,705.82.

Monolithic Power Systems Trading Down 0.7%

Shares of NASDAQ:MPWR opened at $1,335.03 on Wednesday. The stock's 50-day moving average price is $1,429.11 and its two-hundred day moving average price is $1,321.74. Monolithic Power Systems, Inc. has a 12-month low of $774.14 and a 12-month high of $1,714.09. The firm has a market cap of $65.59 billion, a price-to-earnings ratio of 81.85 and a beta of 1.69.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last posted 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 return on equity of 22.31% and a net margin of 24.41%.The company had revenue of $980.64 million during the quarter, compared to analysts' expectations of $903.30 million. During the same quarter in the previous year, the business earned $4.21 EPS. The firm's revenue was up 47.6% on a year-over-year basis. As a group, research analysts forecast that Monolithic Power Systems, Inc. will post 20.2 earnings per share for the current fiscal year.

Monolithic Power Systems Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were issued a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Tuesday, June 30th. Monolithic Power Systems's payout ratio is presently 49.05%.

Monolithic Power Systems News Roundup

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

• Positive Sentiment: An earnings-call recap pointed to a robust upswing, likely supported by continued demand for power-management semiconductors from artificial-intelligence and data-center customers. MPWR recently reported quarterly revenue growth of 47.6% and earnings well above analyst expectations. Monolithic Power Systems Earnings Call Signals Robust Upswing
• Positive Sentiment: One analyst upgraded MPWR to Buy, citing a potential reset in enterprise-data expectations. That view suggests the market may be underestimating a recovery or acceleration in enterprise demand. Monolithic Power Systems: Upgrading To Buy On Enterprise Data Reset
• Positive Sentiment: Several analysts raised their price targets to $1,800, $1,889 and $2,100, signaling that some Wall Street estimates remain well above the recent trading level. Price Target Raised to $1,889 Price Target Raised to $1,800 Price Target Raised to $2,100
• Neutral Sentiment: Technical momentum improved after MPWR moved above its 20-day moving average, although the stock remains below its 50-day average, making the signal less conclusive. MPWR Crossed Above the 20-Day Moving Average
• Neutral Sentiment: Rosenblatt reiterated its Neutral rating, highlighting continued disagreement among analysts over whether the company’s growth outlook justifies its premium valuation. Neutral Rating Reiterated at Rosenblatt Securities
• Negative Sentiment: A contrarian analysis argued that investors should sell despite MPWR’s strong quarter, likely reflecting concerns about its roughly 82-times earnings valuation, high expectations and limited room for further upside if growth slows. Monolithic Power Systems: Why I'm Selling The Best Quarter

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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