Monolithic Power Systems, Inc. $MPWR Stock: Rakuten Investment Management Inc. Raises Stake

Key Points

• Rakuten Investment Management increased its MPWR stake by 13.6% in the third quarter, adding 2,445 shares to hold 20,486 shares worth about $27.8 million. Institutional investors own 93.46% of the stock.
• Monolithic Power beat third-quarter estimates, reporting EPS of $8.19 and revenue of $1.20 billion, up 63.1% year over year. Results were supported by AI infrastructure and communications demand, and the company raised growth expectations.
• Valuation and legal headlines remain risks: MPWR trades at a reported P/E of 73.35, and a law firm announced an investigation into potential fiduciary-duty breaches, which does not establish wrongdoing. Analysts’ consensus rating is “Moderate Buy.”

Rakuten Investment Management Inc. boosted its position in shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR - Free Report) by 13.6% during the 3rd quarter, according to its most recent 13F filing with the SEC. The fund owned 20,486 shares of the semiconductor company's stock after purchasing an additional 2,445 shares during the quarter. Rakuten Investment Management Inc.'s holdings in Monolithic Power Systems were worth $27,779,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also bought and sold shares of MPWR. Third View Private Wealth LLC lifted its holdings in shares of Monolithic Power Systems by 107.8% during the 3rd quarter. Third View Private Wealth LLC now owns 534 shares of the semiconductor company's stock valued at $719,000 after buying an additional 277 shares during the period. Provenance Wealth Advisors LLC grew its holdings in shares of Monolithic Power Systems by 320.0% in the third quarter. Provenance Wealth Advisors LLC now owns 126 shares of the semiconductor company's stock worth $170,000 after acquiring an additional 96 shares during the period. Integrity Alliance LLC. purchased a new stake in Monolithic Power Systems during the third quarter valued at $259,000. Stiles Financial Services Inc increased its position in Monolithic Power Systems by 0.8% during the third quarter. Stiles Financial Services Inc now owns 2,806 shares of the semiconductor company's stock valued at $3,780,000 after acquiring an additional 23 shares during the last quarter. Finally, IPG Investment Advisors LLC increased its position in Monolithic Power Systems by 24.1% during the third quarter. IPG Investment Advisors LLC now owns 1,485 shares of the semiconductor company's stock valued at $2,004,000 after acquiring an additional 288 shares during the last quarter. 93.46% of the stock is currently owned by institutional investors.

Key Stories Impacting Monolithic Power Systems

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

• Positive Sentiment: MPWR’s third-quarter earnings and revenue beat estimates, with results supported by demand for AI infrastructure and communications products. The company also raised growth expectations and is expanding capacity. MPWR Q3 Earnings Beat on AI Infrastructure and Communications Demand
• Positive Sentiment: AI-related momentum is also reflected in the company’s Enterprise Data business, with sales reportedly surging 164.6% and demand for power modules increasing. Rising earnings estimates and capacity investment add to the growth case. MPWR's AI Power Boom Accelerates as Enterprise Data Sales Surge 164.6%
• Positive Sentiment: Monolithic Power ranked seventh on a list of large-cap technology stocks backed by billionaire investors, which may reinforce investor interest, though the ranking itself is not a company-specific catalyst. 25 Billionaire Investors Back This Large Cap Tech Stock: Is It a Buy?
• Negative Sentiment: Rosen Law Firm announced an investigation into potential fiduciary-duty breaches by company directors and officers. The announcement does not establish wrongdoing, but it could create a near-term headline overhang. Rosen Law Firm Announces Investigation
• Negative Sentiment: Valuation remains a risk: MPWR recently fell despite strong AI demand and rising estimates, and its premium multiple and operating risks may limit upside. Growing reliance on data-center demand also increases exposure to that market’s cycles. MPWR Fell 15.9% in the Past Month. Is the Weakness a Buying Chance?

Wall Street Analyst Weigh In

Several research analysts have issued reports on MPWR shares. Weiss Ratings raised Monolithic Power Systems from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 8th. Wall Street Zen raised shares of Monolithic Power Systems from a "hold" rating to a "buy" rating in a research report on Sunday, October 25th. Rosenblatt Securities raised shares of Monolithic Power Systems from a "neutral" rating to a "buy" rating and upped their price target for the company from $1,575.00 to $1,700.00 in a research report on Friday, October 30th. Wells Fargo & Company lowered their price objective on shares of Monolithic Power Systems from $1,800.00 to $1,550.00 and set an "overweight" rating on the stock in a research note on Tuesday, October 20th. Finally, Oppenheimer dropped their price objective on shares of Monolithic Power Systems from $1,700.00 to $1,500.00 and set an "outperform" rating on the stock in a report on Friday, October 23rd. Fourteen analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,783.77.

Insider Buying and Selling

In other news, Director Kuo Wei Chang sold 50 shares of the firm's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $1,281.57, for a total value of $64,078.50. Following the transaction, the director owned 515 shares of the company's stock, valued at $660,008.55. This trade represents a 8.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 3.60% of the stock is currently owned by insiders.

Monolithic Power Systems Price Performance

Shares of MPWR stock opened at $1,328.30 on Wednesday. The company has a market cap of $65.27 billion, a price-to-earnings ratio of 73.35 and a beta of 1.71. Monolithic Power Systems, Inc. has a 1 year low of $833.18 and a 1 year high of $1,714.09. The firm has a fifty day moving average price of $1,274.12 and a 200-day moving average price of $1,313.34.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last announced its earnings results on Thursday, October 29th. The semiconductor company reported $8.19 EPS for the quarter, topping analysts' consensus estimates of $7.79 by $0.40. The company had revenue of $1.20 billion for the quarter, compared to analysts' expectations of $1.16 billion. Monolithic Power Systems had a return on equity of 25.23% and a net margin of 23.85%. Monolithic Power Systems's revenue for the quarter was up 63.1% compared to the same quarter last year. During the same period last year, the firm earned $4.73 EPS. Equities research analysts expect that Monolithic Power Systems, Inc. will post 24.23 EPS for the current year.

Monolithic Power Systems Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th were given a $2.00 dividend. The ex-dividend date was Wednesday, September 30th. This represents a $8.00 dividend on an annualized basis and a yield of 0.6%. Monolithic Power Systems's dividend payout ratio is presently 44.17%.

Monolithic Power Systems Company Profile

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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