Monolithic Power Systems, Inc. (NASDAQ:MPWR) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Analyst consensus: Fifteen analysts give MPWR an average "Moderate Buy" rating (12 buys, 3 holds) with a 12‑month average price target of $1,260.08.
• Recent results and valuation: MPS reported quarterly EPS of $4.79 (beating estimates) and revenue of $751.2M, up 20.8% year‑over‑year, while market cap is about $78B and the PE ratio is ~124.6.
• Dividends and insider/institutional activity: The company raised its quarterly dividend to $2.00 (annualized $8.00, yield ~0.5%), even as insiders sold roughly 137,683 shares (~$158M) in the past three months and institutions now own about 93.5% of shares.

Shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report) have been given an average recommendation of "Moderate Buy" by the fifteen analysts that are presently covering the company, MarketBeat.com reports. Three equities research analysts have rated the stock with a hold rating and twelve have given a buy rating to the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $1,260.0833.

MPWR has been the subject of several research analyst reports. Rosenblatt Securities increased their price objective on Monolithic Power Systems from $950.00 to $1,000.00 and gave the stock a "neutral" rating in a research report on Friday, February 6th. Needham & Company LLC increased their price objective on Monolithic Power Systems from $1,250.00 to $1,300.00 and gave the stock a "buy" rating in a research report on Friday, February 6th. Truist Financial increased their price objective on Monolithic Power Systems from $1,375.00 to $1,396.00 and gave the stock a "buy" rating in a research report on Friday, February 6th. William Blair reiterated an "outperform" rating on shares of Monolithic Power Systems in a research report on Thursday, March 5th. Finally, Stifel Nicolaus increased their price objective on 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.

Monolithic Power Systems Trading Down 2.7%

Shares of MPWR opened at $1,587.57 on Tuesday. The stock's 50 day moving average is $1,206.36 and its two-hundred day moving average is $1,074.80. Monolithic Power Systems has a twelve month low of $562.38 and a twelve month high of $1,661.79. The firm has a market capitalization of $77.98 billion, a PE ratio of 124.61, a P/E/G ratio of 4.13 and a beta of 1.48.

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

Monolithic Power Systems Increases Dividend

The firm 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 was Tuesday, March 31st. This is a positive change from Monolithic Power Systems's previous quarterly dividend of $1.56. This represents a $8.00 annualized dividend and a yield of 0.5%. Monolithic Power Systems's dividend payout ratio (DPR) is currently 62.79%.

Insider Transactions at Monolithic Power Systems

In other Monolithic Power Systems news, CFO Theodore Blegen sold 21,725 shares of the 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 completion of the transaction, the chief financial officer owned 82,353 shares in the company, valued at approximately $96,448,539.48. This represents a 20.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Victor K. Lee sold 400 shares of the business's stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $1,212.16, for a total value of $484,864.00. Following the sale, the director directly owned 27,756 shares in the company, valued at $33,644,712.96. This trade represents a 1.42% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 137,683 shares of company stock valued at $158,138,447 in the last three months. Insiders own 3.40% of the company's stock.

Institutional Investors Weigh In On Monolithic Power Systems

Several institutional investors have recently modified their holdings of MPWR. Corient Private Wealth LLC boosted its stake in shares of Monolithic Power Systems by 3,719.6% during the 4th quarter. Corient Private Wealth LLC now owns 2,047,173 shares of the semiconductor company's stock worth $1,855,476,000 after acquiring an additional 1,993,576 shares in the last quarter. Norges Bank purchased a new stake in shares of Monolithic Power Systems during the 4th quarter worth approximately $658,656,000. Invesco Ltd. boosted its stake in shares of Monolithic Power Systems by 25.9% during the 4th quarter. Invesco Ltd. now owns 1,434,689 shares of the semiconductor company's stock worth $1,300,345,000 after acquiring an additional 295,556 shares in the last quarter. SG Americas Securities LLC boosted its stake in shares of Monolithic Power Systems by 77,483.1% during the 4th quarter. SG Americas Securities LLC now owns 262,231 shares of the semiconductor company's stock worth $237,676,000 after acquiring an additional 261,893 shares in the last quarter. Finally, First Trust Advisors LP boosted its stake in shares of Monolithic Power Systems by 56.6% during the 4th quarter. First Trust Advisors LP now owns 701,454 shares of the semiconductor company's stock worth $635,770,000 after acquiring an additional 253,653 shares in the last quarter. Hedge funds and other institutional investors own 93.46% of the company's stock.

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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