Nomura Asset Management Co. Ltd. Cuts Stake in Monolithic Power Systems, Inc. $MPWR

Key Points

• Nomura Asset Management trimmed its stake in Monolithic Power Systems by 4.4% in the fourth quarter, selling 5,382 shares and ending with 117,019 shares worth about $106.1 million.
• Insider selling has been notable, including large recent sales by Director Eugen J. Elmiger and EVP Deming Xiao, with insiders selling 113,043 shares worth $160.8 million over the last 90 days.
• Monolithic Power Systems reported strong quarterly results, beating EPS and revenue estimates with $5.10 in EPS and $804.19 million in revenue, though the stock still trades at a high valuation and analysts remain cautiously positive with a “Moderate Buy” consensus.

Nomura Asset Management Co. Ltd. reduced its holdings in shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR - Free Report) by 4.4% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 117,019 shares of the semiconductor company's stock after selling 5,382 shares during the period. Nomura Asset Management Co. Ltd. owned about 0.24% of Monolithic Power Systems worth $106,061,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in the business. Thurston Springer Miller Herd & Titak Inc. acquired a new position in Monolithic Power Systems during the 4th quarter worth approximately $34,000. IFP Advisors Inc grew its holdings in Monolithic Power Systems by 171.4% during the 3rd quarter. IFP Advisors Inc now owns 38 shares of the semiconductor company's stock worth $35,000 after acquiring an additional 24 shares in the last quarter. Covestor Ltd grew its holdings 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. Cornerstone Planning Group LLC grew its holdings in Monolithic Power Systems by 542.9% during the 3rd quarter. Cornerstone Planning Group LLC now owns 45 shares of the semiconductor company's stock worth $41,000 after acquiring an additional 38 shares in the last quarter. Finally, Torren Management LLC acquired a new position in Monolithic Power Systems during the 4th quarter worth approximately $49,000. 93.46% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Monolithic Power Systems

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

Insiders Place Their Bets

In other news, Director Eugen J. Elmiger sold 12,000 shares of the company's stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $1,584.96, for a total value of $19,019,520.00. Following the completion of the transaction, the director owned 5,402 shares in the company, valued at approximately $8,561,953.92. This represents a 68.96% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Deming Xiao sold 30,000 shares of the company's stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $1,654.55, for a total transaction of $49,636,500.00. Following the completion of the transaction, the executive vice president owned 205,959 shares of the company's stock, valued at approximately $340,769,463.45. The trade was a 12.71% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 113,043 shares of company stock worth $160,829,940. 3.40% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Raymond James Financial reiterated an "outperform" rating and set a $1,800.00 price target on shares of Monolithic Power Systems in a report on Friday, May 1st. TD Cowen boosted their price target on shares of Monolithic Power Systems from $1,550.00 to $1,850.00 and gave the stock a "buy" rating in a report on Friday, May 1st. Citigroup reiterated a "buy" rating on shares of Monolithic Power Systems in a report on Friday, May 1st. Weiss Ratings cut shares of Monolithic Power Systems from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday. Finally, William Blair reiterated an "outperform" rating on shares of Monolithic Power Systems in a report on Thursday, March 5th. Twelve equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Monolithic Power Systems currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,599.17.

Monolithic Power Systems Trading Down 4.1%

Shares of Monolithic Power Systems stock opened at $1,566.21 on Friday. The company has a fifty day simple moving average of $1,411.52 and a 200-day simple moving average of $1,161.77. Monolithic Power Systems, Inc. has a 12-month low of $643.36 and a 12-month high of $1,714.09. The stock has a market cap of $76.95 billion, a price-to-earnings ratio of 112.92, a PEG ratio of 2.80 and a beta of 1.74.

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

Monolithic Power Systems Company 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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