Monolithic Power Systems, Inc. (NASDAQ:MPWR) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Monolithic Power Systems, Inc. has received a consensus recommendation of "Moderate Buy" from twelve brokerages, with an average price target of $805.67.
• Insiders, including the CFO, have recently sold significant shares of the company, indicating a decrease in their holdings by 11.33% to 12.89%.
• The company reported a 39.2% increase in quarterly revenue year-over-year, yielding earnings per share of $4.04, outperforming analyst expectations.

Shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the twelve analysts that are currently covering the company, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold recommendation and ten have given a buy recommendation to the company. The average 12-month price target among brokers that have covered the stock in the last year is $805.67.

MPWR has been the subject of a number of research analyst reports. Stifel Nicolaus cut their price objective on shares of Monolithic Power Systems from $1,100.00 to $880.00 and set a "buy" rating for the company in a research report on Thursday, April 17th. Oppenheimer reissued an "outperform" rating and issued a $800.00 price target (up previously from $700.00) on shares of Monolithic Power Systems in a research report on Tuesday, July 15th. KeyCorp increased their price target on shares of Monolithic Power Systems from $820.00 to $940.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 8th. TD Cowen increased their price target on shares of Monolithic Power Systems from $600.00 to $675.00 and gave the stock a "buy" rating in a research report on Friday, May 2nd. Finally, Citigroup increased their price target on shares of Monolithic Power Systems from $700.00 to $785.00 and gave the stock a "buy" rating in a research report on Wednesday, June 4th.

Monolithic Power Systems Stock Performance

Shares of MPWR traded up $6.17 during trading hours on Friday, reaching $730.54. 629,447 shares of the company traded hands, compared to its average volume of 454,998. The stock's fifty day moving average is $711.06 and its 200 day moving average is $647.47. The stock has a market cap of $34.98 billion, a P/E ratio of 19.39, a price-to-earnings-growth ratio of 2.87 and a beta of 1.20. Monolithic Power Systems has a 1-year low of $438.86 and a 1-year high of $959.64.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last announced its quarterly earnings data on Thursday, May 1st. The semiconductor company reported $4.04 EPS for the quarter, beating analysts' consensus estimates of $4.00 by $0.04. The business had revenue of $637.55 million during the quarter, compared to analyst estimates of $633.43 million. Monolithic Power Systems had a net margin of 76.59% and a return on equity of 19.80%. The firm's revenue for the quarter was up 39.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.81 earnings per share. On average, equities research analysts predict that Monolithic Power Systems will post 13.2 EPS for the current year.

Monolithic Power Systems Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, July 15th. Shareholders of record on Monday, June 30th were paid a dividend of $1.56 per share. The ex-dividend date was Monday, June 30th. This represents a $6.24 annualized dividend and a yield of 0.85%. Monolithic Power Systems's dividend payout ratio is 16.56%.

Insiders Place Their Bets

In other Monolithic Power Systems news, Director Kuo Wei Herbert Chang sold 100 shares of the company's stock in a transaction dated Monday, May 12th. The shares were sold at an average price of $698.00, for a total transaction of $69,800.00. Following the sale, the director directly owned 676 shares of the company's stock, valued at approximately $471,848. This represents a 12.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Theodore Blegen sold 6,000 shares of the company's stock in a transaction dated 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 sale, the chief financial officer directly owned 46,939 shares in the company, valued at $35,204,250. This represents a 11.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 18,200 shares of company stock valued at $13,046,800. 3.40% of the stock is currently owned by insiders.

Institutional Trading of Monolithic Power Systems

Large investors have recently added to or reduced their stakes in the company. Wedmont Private Capital increased its holdings in shares of Monolithic Power Systems by 1.3% in the second quarter. Wedmont Private Capital now owns 1,068 shares of the semiconductor company's stock valued at $802,000 after purchasing an additional 14 shares in the last quarter. Confluence Wealth Services Inc. increased its holdings in shares of Monolithic Power Systems by 0.9% in the second quarter. Confluence Wealth Services Inc. now owns 2,067 shares of the semiconductor company's stock valued at $1,511,000 after purchasing an additional 19 shares in the last quarter. Beverly Hills Private Wealth LLC increased its holdings in shares of Monolithic Power Systems by 3.2% in the first quarter. Beverly Hills Private Wealth LLC now owns 638 shares of the semiconductor company's stock valued at $370,000 after purchasing an additional 20 shares in the last quarter. Cromwell Holdings LLC increased its holdings in shares of Monolithic Power Systems by 18.7% in the first quarter. Cromwell Holdings LLC now owns 127 shares of the semiconductor company's stock valued at $74,000 after purchasing an additional 20 shares in the last quarter. Finally, Burney Co. increased its holdings in shares of Monolithic Power Systems by 2.2% in the first quarter. Burney Co. now owns 946 shares of the semiconductor company's stock valued at $549,000 after purchasing an additional 20 shares in the last quarter. 93.46% of the stock is owned by institutional investors.

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.