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

Key Points

• Monolithic Power Systems, Inc. has received a consensus recommendation of "Moderate Buy" from twelve brokerages, with an average target price of $838.09.
• The company reported $4.21 earnings per share for the last quarter, exceeding analyst expectations, and its revenue grew by 31% year-over-year.
• Monolithic Power Systems declared a quarterly dividend of $1.56 per share, reflecting an annualized yield of 0.7%.

Shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the twelve brokerages that are covering the company, MarketBeat Ratings reports. Two analysts have rated the stock with a hold recommendation, nine have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $838.0909.

A number of analysts have weighed in on MPWR shares. William Blair upgraded Monolithic Power Systems to a "strong-buy" rating in a report on Wednesday, August 13th. Raymond James Financial restated an "outperform" rating and set a $875.00 target price (up previously from $720.00) on shares of Monolithic Power Systems in a report on Friday, August 1st. Stifel Nicolaus upped their target price on Monolithic Power Systems from $880.00 to $930.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Rosenblatt Securities restated a "neutral" rating and set a $800.00 target price on shares of Monolithic Power Systems in a report on Friday, August 1st. Finally, Loop Capital upped their target price on Monolithic Power Systems from $760.00 to $800.00 and gave the stock a "buy" rating in a report on Wednesday, July 23rd.

Monolithic Power Systems Stock Performance

Shares of NASDAQ MPWR opened at $834.14 on Monday. The firm has a market capitalization of $39.95 billion, a price-to-earnings ratio of 21.72, a PEG ratio of 3.11 and a beta of 1.23. The stock has a 50 day moving average price of $794.18 and a 200 day moving average price of $687.48. Monolithic Power Systems has a 52-week low of $438.86 and a 52-week high of $954.00.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The semiconductor company reported $4.21 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.12 by $0.09. The firm had revenue of $664.57 million during the quarter, compared to analyst estimates of $648.74 million. Monolithic Power Systems had a return on equity of 19.14% and a net margin of 73.17%.Monolithic Power Systems's quarterly revenue was up 31.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $3.17 earnings per share. Monolithic Power Systems has set its Q3 2025 guidance at EPS. Analysts forecast that Monolithic Power Systems will post 13.2 earnings per share for the current year.

Monolithic Power Systems Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Tuesday, September 30th will be given a dividend of $1.56 per share. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $6.24 dividend on an annualized basis and a dividend yield of 0.7%. Monolithic Power Systems's dividend payout ratio is presently 16.25%.

Insider Transactions at Monolithic Power Systems

In other news, CFO Theodore Blegen sold 6,000 shares of the company's stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $750.00, for a total transaction of $4,500,000.00. Following the transaction, the chief financial officer directly owned 46,939 shares of the company's stock, valued at approximately $35,204,250. This represents a 11.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Jeff Zhou sold 400 shares of the company's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $850.00, for a total value of $340,000.00. Following the transaction, the director directly owned 5,804 shares in the company, valued at approximately $4,933,400. The trade was a 6.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 52,792 shares of company stock valued at $41,066,150. Corporate insiders own 3.40% of the company's stock.

Hedge Funds Weigh In On Monolithic Power Systems

Several hedge funds have recently made changes to their positions in MPWR. WPG Advisers LLC acquired a new stake in Monolithic Power Systems during the 1st quarter worth about $27,000. Fourth Dimension Wealth LLC acquired a new stake in Monolithic Power Systems during the 4th quarter worth about $29,000. NewSquare Capital LLC grew its position in Monolithic Power Systems by 76.0% during the 2nd quarter. NewSquare Capital LLC now owns 44 shares of the semiconductor company's stock worth $32,000 after purchasing an additional 19 shares during the period. SouthState Corp acquired a new stake in Monolithic Power Systems during the 1st quarter worth about $33,000. Finally, Strategic Investment Solutions Inc. IL acquired a new stake in Monolithic Power Systems during the 2nd quarter worth about $36,000. 93.46% of the stock is owned by institutional investors and hedge funds.

Monolithic Power Systems Company Profile

Monolithic Power Systems, Inc engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the storage and computing, automotive, enterprise data, consumer, communications, and industrial markets. The company provides direct current (DC) to DC integrated circuits (ICs) that are used to convert and control voltages of various electronic systems, such as cloud-based CPU servers, server artificial intelligence applications, storage applications, commercial notebooks, digital cockpit, power sources, home appliances, 4G and 5G infrastructure, and satellite communications applications.

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