Monolithic Power Systems, Inc. $MPWR Stock: Valley National Advisers Inc. Reduces Stake

Key Points

• Valley National Advisers cut its MPWR stake by 98.1% in the third quarter, leaving the fund with 45 shares worth approximately $60,000. Institutional investors overall own 93.46% of Monolithic Power Systems.
• Monolithic Power Systems reported strong operating momentum, with quarterly revenue up 47.6% year over year to $980.64 million and EPS of $6.50, exceeding analyst expectations. Analysts expect $23.95 in full-year EPS, while the company maintains a $2.00 quarterly dividend.
• Analyst sentiment remains broadly positive, with 13 Buy ratings and three Holds and an average price target of $1,692.64, although recent insider sales and investigations into possible fiduciary and securities-law violations add risk for investors.

Valley National Advisers Inc. reduced its position in Monolithic Power Systems, Inc. (NASDAQ:MPWR - Free Report) by 98.1% in the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 45 shares of the semiconductor company's stock after selling 2,302 shares during the period. Valley National Advisers Inc.'s holdings in Monolithic Power Systems were worth $60,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in MPWR. BlackRock Inc. purchased a new stake in shares of Monolithic Power Systems during the second quarter valued at $7,727,289,000. State Street Corp raised its position in Monolithic Power Systems by 4.3% in the 2nd quarter. State Street Corp now owns 2,282,186 shares of the semiconductor company's stock worth $3,159,219,000 after buying an additional 93,732 shares during the last quarter. Van ECK Associates Corp raised its position in Monolithic Power Systems by 42.3% in the 2nd quarter. Van ECK Associates Corp now owns 746,237 shares of the semiconductor company's stock worth $1,031,568,000 after buying an additional 221,666 shares during the last quarter. Bank of America Corp DE purchased a new position in Monolithic Power Systems in the 2nd quarter worth about $741,271,000. Finally, Royal Bank of Canada lifted its stake in Monolithic Power Systems by 168.1% during the 1st quarter. Royal Bank of Canada now owns 473,368 shares of the semiconductor company's stock valued at $517,557,000 after acquiring an additional 296,788 shares during the period. 93.46% of the stock is owned by institutional investors.

Monolithic Power Systems Price Performance

Shares of MPWR opened at $1,167.27 on Tuesday. Monolithic Power Systems, Inc. has a one year low of $833.18 and a one year high of $1,714.09. The firm has a market capitalization of $57.36 billion, a P/E ratio of 71.57 and a beta of 1.68. The business has a fifty day moving average of $1,285.22 and a 200 day moving average of $1,305.36.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The semiconductor company reported $6.50 EPS for the quarter, beating analysts' consensus estimates 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 prior year, the business earned $4.21 earnings per share. Monolithic Power Systems's revenue for the quarter was up 47.6% compared to the same quarter last year. Analysts expect that Monolithic Power Systems, Inc. will post 23.95 EPS for the current fiscal year.

Monolithic Power Systems Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th were paid a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Wednesday, September 30th. Monolithic Power Systems's payout ratio is currently 49.05%.

Insider Activity

In other news, Director Kuo Wei Chang sold 50 shares of the company's 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 sale, the director owned 515 shares of the company's stock, valued at $660,008.55. This represents a 8.85% decrease in their position. The transaction 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 stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $1,343.94, for a total transaction of $40,318.20. Following the completion of the transaction, 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 position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 130 shares of company stock valued at $175,397 in the last ninety days. Insiders own 3.60% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on MPWR shares. Wall Street Zen raised shares of Monolithic Power Systems from a "hold" rating to a "buy" rating in a report on Sunday. Wells Fargo & Company reduced their price target on shares of Monolithic Power Systems from $1,800.00 to $1,550.00 and set an "overweight" rating for the company in a research note on Tuesday, October 20th. Zacks Research cut shares of Monolithic Power Systems from a "strong-buy" rating to a "hold" rating in a report on Friday, October 2nd. KeyCorp increased their price objective on shares of Monolithic Power Systems from $2,000.00 to $2,100.00 and gave the company an "overweight" rating in a research report on Friday, July 31st. Finally, Weiss Ratings upgraded shares of Monolithic Power Systems from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 8th. Thirteen investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Monolithic Power Systems has an average rating of "Moderate Buy" and an average target price of $1,692.64.

Key Stories Impacting Monolithic Power Systems

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

• Positive Sentiment: Analysts expect strong third-quarter results, driven by continued artificial-intelligence data-center demand, improving revenue expectations and growth across several business segments. The outlook builds on the company’s previous quarterly performance, when revenue rose 47.6% year over year and earnings exceeded consensus estimates. Can Healthy Top-Line Growth Benefit Monolithic Power’s Q3 Earnings?
• Positive Sentiment: Wall Street Zen upgraded MPWR to “Buy,” while the stock’s consensus price target was reported at $1,735.50. These recommendations indicate that some analysts see upside from current valuation levels, although the target is not a guarantee of future performance. Monolithic Power Systems Raised to Buy at Wall Street Zen Monolithic Power Systems Has Consensus Target Price of $1,735.50
• Neutral Sentiment: Reported short interest was zero shares, implying no measurable short-squeeze pressure. The figure may reflect a data or reporting anomaly, so it provides limited insight into investor positioning.
• Negative Sentiment: Rosen Law Firm announced an investigation into possible breaches of fiduciary duties by MPWR’s directors and officers. The development could increase legal costs, reputational risk and uncertainty for shareholders. Rosen Law Firm Announces Investigation
• Negative Sentiment: Schubert Jonckheer & Kolbe said it is investigating possible wrongdoing after a 30% stock decline and court rulings allowed key claims in a securities-fraud lawsuit against Monolithic Power, its CEO and former CFO to proceed. This adds an overhang ahead of the earnings report. Schubert Jonckheer Investor Reminder

Monolithic Power Systems 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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