Wealthfront Advisers LLC Has $6.95 Million Position in Monolithic Power Systems, Inc. $MPWR

Key Points

• Wealthfront Advisers LLC increased its stake in Monolithic Power Systems by 38.2% in Q4, raising its holding to 7,673 shares worth about $6.95 million amid very high institutional ownership (~93.5%).
• Significant insider selling has occurred recently — CFO Theodore Blegen sold 21,725 shares (~$25.4M) and EVP Saria Tseng sold 25,674 shares (~$25.9M), with insiders offloading 137,683 shares (~$158.1M) over the past 90 days and now owning ~3.4%.
• Fundamentals are strong but valuation is rich: MPWR beat Q4 estimates (EPS $4.79 vs. $4.74) with revenue up 20.8% y/y and raised its quarterly dividend to $2.00, yet the stock trades at a high P/E (~120) with a consensus "Moderate Buy" price target of $1,260.08.

Wealthfront Advisers LLC increased its position in shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR - Free Report) by 38.2% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 7,673 shares of the semiconductor company's stock after purchasing an additional 2,119 shares during the period. Wealthfront Advisers LLC's holdings in Monolithic Power Systems were worth $6,954,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in MPWR. True Wealth Design LLC raised its holdings in Monolithic Power Systems by 61.1% in the 3rd quarter. True Wealth Design LLC now owns 29 shares of the semiconductor company's stock valued at $26,000 after acquiring an additional 11 shares in the last quarter. SJS Investment Consulting Inc. raised its holdings in Monolithic Power Systems by 2,700.0% in the 3rd quarter. SJS Investment Consulting Inc. now owns 28 shares of the semiconductor company's stock valued at $26,000 after acquiring an additional 27 shares in the last quarter. Salomon & Ludwin LLC acquired a new position in Monolithic Power Systems in the 3rd quarter valued at $33,000. Thurston Springer Miller Herd & Titak Inc. acquired a new position in Monolithic Power Systems in the 4th quarter valued at $34,000. Finally, IFP Advisors Inc raised its holdings in Monolithic Power Systems by 171.4% in the 3rd quarter. IFP Advisors Inc now owns 38 shares of the semiconductor company's stock valued at $35,000 after acquiring an additional 24 shares in the last quarter. 93.46% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, CFO Theodore Blegen sold 21,725 shares of Monolithic Power Systems stock in a transaction on Friday, February 6th. The stock was 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 owned 82,353 shares in the company, valued at approximately $96,448,539.48. This trade represents a 20.87% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Saria Tseng sold 25,674 shares of Monolithic Power Systems stock in a transaction on Monday, March 30th. The shares were sold at an average price of $1,010.50, for a total value of $25,943,577.00. Following the completion of the transaction, the executive vice president owned 174,982 shares in the company, valued at approximately $176,819,311. The trade was a 12.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 137,683 shares of company stock worth $158,138,447. 3.40% of the stock is owned by company insiders.

Monolithic Power Systems Stock Performance

Shares of MPWR opened at $1,526.84 on Thursday. Monolithic Power Systems, Inc. has a 52-week low of $562.38 and a 52-week high of $1,661.79. The business's fifty day moving average is $1,219.75 and its 200-day moving average is $1,082.15. The firm has a market cap of $75.00 billion, a price-to-earnings ratio of 119.85, a PEG ratio of 4.02 and a beta of 1.48.

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

Monolithic Power Systems Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were paid a $2.00 dividend. This represents a $8.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Tuesday, March 31st. This is a positive change from Monolithic Power Systems's previous quarterly dividend of $1.56. Monolithic Power Systems's dividend payout ratio is 62.79%.

Wall Street Analyst Weigh In

MPWR has been the subject of several analyst reports. Weiss Ratings cut Monolithic Power Systems from a "buy (b-)" rating to a "hold (c)" rating in a report on Monday, March 2nd. Stifel Nicolaus lifted their price objective on 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. KeyCorp lifted their price objective on Monolithic Power Systems from $1,300.00 to $1,500.00 and gave the company an "overweight" rating in a report on Friday, February 6th. Needham & Company LLC lifted their price objective on Monolithic Power Systems from $1,250.00 to $1,300.00 and gave the company a "buy" rating in a report on Friday, February 6th. Finally, Truist Financial lifted 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. Twelve analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $1,260.08.

Monolithic Power Systems 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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