Sapient Capital LLC Lowers Stock Holdings in Monolithic Power Systems, Inc. $MPWR

Key Points

• Sapient Capital cut its Monolithic Power Systems stake by 37.1% in the first quarter, selling 13,194 shares and retaining 22,370 shares valued at approximately $24.5 million. Institutional investors collectively own 93.46% of MPWR.
• Company insiders sold 69,340 shares worth roughly $112.7 million over the past 90 days, including executive sales by Saria Tseng and Maurice Sciammas. Insiders own 3.6% of the company.
• Analyst sentiment remains positive: MPWR reported quarterly EPS of $6.50 and revenue of $980.64 million, beating estimates, while several brokerages raised price targets. The stock carries a “Moderate Buy” consensus rating and an average target of $1,705.82, though its elevated valuation remains a risk.

Sapient Capital LLC lowered its position in Monolithic Power Systems, Inc. (NASDAQ:MPWR - Free Report) by 37.1% in the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 22,370 shares of the semiconductor company's stock after selling 13,194 shares during the period. Sapient Capital LLC's holdings in Monolithic Power Systems were worth $24,491,000 at the end of the most recent quarter.

A number of other institutional investors have also bought and sold shares of MPWR. Parallel Advisors LLC boosted its stake in shares of Monolithic Power Systems by 12.9% in the first quarter. Parallel Advisors LLC now owns 577 shares of the semiconductor company's stock worth $631,000 after acquiring an additional 66 shares during the period. Optiver Holding B.V. bought a new stake in Monolithic Power Systems during the 1st quarter valued at approximately $97,000. Groupama Asset Managment raised its stake in Monolithic Power Systems by 5.1% during the 1st quarter. Groupama Asset Managment now owns 1,742 shares of the semiconductor company's stock valued at $1,905,000 after purchasing an additional 84 shares during the period. Wellington Grp LLC purchased a new position in Monolithic Power Systems in the 1st quarter worth approximately $526,000. Finally, GKV Capital Management Co. Inc. lifted its holdings in Monolithic Power Systems by 1.0% in the 1st quarter. GKV Capital Management Co. Inc. now owns 2,940 shares of the semiconductor company's stock worth $3,214,000 after purchasing an additional 30 shares in the last quarter. Hedge funds and other institutional investors own 93.46% of the company's stock.

Insider Buying and Selling at Monolithic Power Systems

In other news, EVP Saria Tseng sold 7,565 shares of Monolithic Power Systems stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $1,700.00, for a total value of $12,860,500.00. Following the completion of the transaction, the executive vice president owned 144,218 shares in the company, valued at approximately $245,170,600. The trade was a 4.98% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Maurice Sciammas sold 30 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $1,351.61, for a total value of $40,548.30. Following the transaction, the executive vice president directly owned 1,149 shares in the company, valued at approximately $1,552,999.89. This represents a 2.54% decrease in their position. 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 90 days, insiders sold 69,340 shares of company stock valued at $112,654,841. Corporate insiders own 3.60% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have issued reports on MPWR. Wells Fargo & Company increased their price objective on shares of Monolithic Power Systems from $1,700.00 to $1,800.00 and gave the company an "overweight" rating in a report on Friday. Zacks Research raised shares of Monolithic Power Systems from a "hold" rating to a "strong-buy" rating in a research note on Thursday, June 18th. Stifel Nicolaus lifted their price target on shares of Monolithic Power Systems from $1,300.00 to $1,500.00 and gave the company a "buy" rating in a report on Thursday, April 16th. 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 research note on Friday, May 1st. Finally, Weiss Ratings raised shares of Monolithic Power Systems from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, June 12th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, Monolithic Power Systems has an average rating of "Moderate Buy" and an average target price of $1,705.82.

Monolithic Power Systems Price Performance

MPWR stock opened at $1,426.03 on Monday. Monolithic Power Systems, Inc. has a 52 week low of $706.00 and a 52 week high of $1,714.09. The company has a fifty day simple moving average of $1,440.58 and a two-hundred day simple moving average of $1,316.72. The firm has a market capitalization of $70.06 billion, a P/E ratio of 87.43 and a beta of 1.71.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last posted its earnings results on Thursday, July 30th. The semiconductor company reported $6.50 earnings per share for the quarter, topping analysts' consensus estimates of $5.87 by $0.63. The firm had revenue of $980.64 million for the quarter, compared to the consensus estimate of $903.30 million. Monolithic Power Systems had a net margin of 24.41% and a return on equity of 22.31%. The business's quarterly revenue was up 47.6% on a year-over-year basis. During the same period in the previous year, the firm posted $4.21 EPS. As a group, analysts anticipate that Monolithic Power Systems, Inc. will post 20.2 EPS for the current year.

Monolithic Power Systems Dividend Announcement

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

Key Stories Impacting Monolithic Power Systems

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

• Positive Sentiment: Q2 results exceeded expectations: Monolithic Power reported adjusted earnings of $6.50 per share versus the $5.87 analyst consensus, while revenue reached $980.64 million, up 47.6% year over year and well above the $903.30 million estimate. Monolithic Power Systems Q2 earnings report
• Positive Sentiment: AI and data-center demand is accelerating: Enterprise Data revenue surged 164.3%, and management highlighted expanding AI infrastructure demand, capacity investments and broader power-management solutions as key growth drivers. MPWR Q2 earnings call highlights
• Positive Sentiment: Strong third-quarter outlook: Management projected approximately $1.14 billion to $1.16 billion in third-quarter sales, substantially above the roughly $980 million consensus estimate, reinforcing expectations for continued growth and operating leverage. Monolithic Power beats Q2 earnings estimates
• Positive Sentiment: Analysts raised targets: KeyCorp increased its target to $2,100 with an overweight rating, Truist raised its target to $1,889 with a buy rating, and Wells Fargo lifted its target to $1,800 with an overweight rating. Analyst forecasts after strong Q2 results
• Neutral Sentiment: Rosenblatt reaffirmed a neutral rating, although it raised its price target to $1,575, suggesting some analysts believe much of the near-term improvement is already reflected in the valuation. Rosenblatt rating
• Negative Sentiment: Valuation remains a risk: MPWR has risen sharply over the past year and trades at a high earnings multiple, leaving the stock vulnerable to profit-taking if AI demand, margins or future guidance fail to meet elevated expectations. MPWR valuation analysis

About Monolithic Power Systems

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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