Vanguard Group Inc. Sells 39,639 Shares of Monolithic Power Systems, Inc. $MPWR

Key Points

• Vanguard Group Inc. trimmed its stake by 0.7%, selling 39,639 shares and now holds 6,034,394 shares of Monolithic Power Systems—about 12.6% of the company valued at roughly $5.47 billion per its latest SEC filing.
• Monolithic Power Systems beat quarterly estimates with $4.79 EPS and $751.2M revenue (up 20.8% YoY), has a market cap near $78B and a high valuation (P/E ~124.6), and recently raised its quarterly dividend to $2.00 ($8.00 annual, ~0.5% yield).
• Significant insider and institutional activity: insiders sold 137,683 shares (~$158M) over the past three months—including large sales by CFO Theodore Blegen and EVP Maurice Sciammas on Feb. 6—and institutions now own about 93.46% of the stock while insiders hold 3.4%.

Vanguard Group Inc. cut its stake in shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR - Free Report) by 0.7% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 6,034,394 shares of the semiconductor company's stock after selling 39,639 shares during the period. Vanguard Group Inc. owned about 12.60% of Monolithic Power Systems worth $5,469,333,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. SG Americas Securities LLC increased its stake in Monolithic Power Systems by 77,483.1% in the 4th quarter. SG Americas Securities LLC now owns 262,231 shares of the semiconductor company's stock worth $237,676,000 after buying an additional 261,893 shares in the last quarter. Rakuten Investment Management Inc. bought a new position in shares of Monolithic Power Systems in the 3rd quarter valued at about $197,260,000. First Trust Advisors LP lifted its stake in Monolithic Power Systems by 66.4% in the third quarter. First Trust Advisors LP now owns 447,801 shares of the semiconductor company's stock worth $412,263,000 after purchasing an additional 178,622 shares during the last quarter. Rafferty Asset Management LLC lifted its stake in Monolithic Power Systems by 36.1% in the second quarter. Rafferty Asset Management LLC now owns 529,124 shares of the semiconductor company's stock worth $386,991,000 after purchasing an additional 140,269 shares during the last quarter. Finally, Marshall Wace LLP bought a new stake in Monolithic Power Systems in the third quarter worth about $121,658,000. 93.46% of the stock is currently owned by hedge funds and other institutional investors.

Monolithic Power Systems Price Performance

Monolithic Power Systems stock opened at $1,587.57 on Tuesday. The firm has a 50 day simple moving average of $1,206.36 and a 200-day simple moving average of $1,074.80. Monolithic Power Systems, Inc. has a 1-year low of $562.38 and a 1-year high of $1,661.79. The stock has a market cap of $77.98 billion, a price-to-earnings ratio of 124.61, a price-to-earnings-growth ratio of 4.13 and a beta of 1.48.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last issued its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $4.79 EPS for the quarter, topping the consensus estimate of $4.74 by $0.05. The firm had revenue of $751.16 million for the quarter, compared to analyst estimates of $741.69 million. Monolithic Power Systems had a net margin of 22.07% and a return on equity of 18.33%. The business's revenue for the quarter was up 20.8% compared to the same quarter last year. During the same period in the prior year, the business posted $4.09 EPS. Equities analysts expect that Monolithic Power Systems, Inc. will post 17.01 earnings per share for the current fiscal year.

Monolithic Power Systems Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st were given a $2.00 dividend. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $8.00 dividend on an annualized basis and a dividend yield of 0.5%. This is a boost from Monolithic Power Systems's previous quarterly dividend of $1.56. Monolithic Power Systems's payout ratio is currently 62.79%.

Insider Transactions at Monolithic Power Systems

In related news, CFO Theodore Blegen sold 21,725 shares of the stock in a transaction on Friday, February 6th. The shares were sold at an average price of $1,171.16, for a total value of $25,443,451.00. Following the transaction, the chief financial officer directly owned 82,353 shares of the company's stock, valued at $96,448,539.48. This trade represents a 20.87% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Maurice Sciammas sold 22,875 shares of the stock in a transaction on Friday, February 6th. The shares were sold at an average price of $1,171.16, for a total transaction of $26,790,285.00. Following the completion of the transaction, the executive vice president directly owned 178,625 shares in the company, valued at $209,198,455. This trade represents a 11.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 137,683 shares of company stock worth $158,138,447. Insiders own 3.40% of the company's stock.

Wall Street Analyst Weigh In

MPWR has been the topic of a number of research reports. Oppenheimer reaffirmed an "outperform" rating and set a $1,600.00 target price on shares of Monolithic Power Systems in a research report on Friday. Stifel Nicolaus raised their target price on shares of Monolithic Power Systems from $1,300.00 to $1,500.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Citigroup increased their price objective on Monolithic Power Systems from $1,250.00 to $1,350.00 and gave the company a "buy" rating in a report on Monday, February 9th. Truist Financial increased their price objective on Monolithic Power Systems from $1,375.00 to $1,396.00 and gave the company a "buy" rating in a report on Friday, February 6th. Finally, Wells Fargo & Company lifted their price objective on shares of Monolithic Power Systems from $1,200.00 to $1,350.00 and gave the stock an "overweight" rating in a research note on Friday, February 6th. Twelve research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, Monolithic Power Systems presently has a consensus rating of "Moderate Buy" and an average price target of $1,260.08.

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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