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

Key Points

• Monolithic Power Systems, Inc. (NASDAQ:MPWR) has received a consensus rating of "Moderate Buy" from twelve brokerages, with an average target price of $838.09.
• The company reported a 31.0% increase in revenue year-over-year, with earnings per share of $4.21 for the recent quarter, exceeding analyst expectations.
• Monolithic Power Systems declared a quarterly dividend of $1.56, with an annualized yield of 0.8% and a payout ratio of 16.25%.

Shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report) have earned an average rating of "Moderate Buy" from the twelve brokerages that are covering the stock, Marketbeat.com reports. Two analysts have rated the stock with a hold rating, nine have given a buy rating and one has issued a strong buy rating on the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $838.0909.

MPWR has been the topic of a number of recent research reports. Needham & Company LLC boosted their target price on Monolithic Power Systems from $800.00 to $820.00 and gave the company a "buy" rating in a report on Friday, August 1st. Oppenheimer reissued an "outperform" rating and issued a $800.00 target price (up previously from $700.00) on shares of Monolithic Power Systems in a report on Tuesday, July 15th. Stifel Nicolaus boosted their target price on Monolithic Power Systems from $880.00 to $930.00 and gave the company a "buy" rating in a report on Friday, August 1st. Raymond James Financial reissued an "outperform" rating and issued a $875.00 target price (up previously from $720.00) on shares of Monolithic Power Systems in a report on Friday, August 1st. Finally, Wells Fargo & Company boosted their target price on Monolithic Power Systems from $730.00 to $750.00 and gave the company an "equal weight" rating in a report on Friday, August 1st.

Monolithic Power Systems Trading Down 2.2%

Shares of NASDAQ MPWR opened at $826.27 on Thursday. Monolithic Power Systems has a twelve month low of $438.86 and a twelve month high of $959.64. The stock has a 50 day moving average of $751.36 and a two-hundred day moving average of $667.29. The stock has a market cap of $39.57 billion, a P/E ratio of 21.52, a P/E/G ratio of 3.15 and a beta of 1.18.

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

Monolithic Power Systems Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, July 15th. Stockholders of record on Monday, June 30th were issued a $1.56 dividend. The ex-dividend date of this dividend was Monday, June 30th. This represents a $6.24 dividend on an annualized basis and a dividend yield of 0.8%. Monolithic Power Systems's payout ratio is presently 16.25%.

Insider Activity

In related news, 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 transaction of $340,000.00. Following the transaction, the director owned 5,804 shares of the company's stock, valued at $4,933,400. This represents a 6.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, 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 value of $4,500,000.00. Following the transaction, 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 position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 49,599 shares of company stock valued at $38,455,220. Company insiders own 3.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of MPWR. Brighton Jones LLC grew its holdings in Monolithic Power Systems by 46.0% during the fourth quarter. Brighton Jones LLC now owns 635 shares of the semiconductor company's stock worth $376,000 after acquiring an additional 200 shares during the period. GeoWealth Management LLC grew its holdings in Monolithic Power Systems by 73.9% during the fourth quarter. GeoWealth Management LLC now owns 287 shares of the semiconductor company's stock worth $170,000 after acquiring an additional 122 shares during the period. Dimensional Fund Advisors LP grew its holdings in Monolithic Power Systems by 7.2% during the fourth quarter. Dimensional Fund Advisors LP now owns 159,587 shares of the semiconductor company's stock worth $94,440,000 after acquiring an additional 10,761 shares during the period. MML Investors Services LLC boosted its position in Monolithic Power Systems by 1.7% during the fourth quarter. MML Investors Services LLC now owns 7,554 shares of the semiconductor company's stock worth $4,470,000 after purchasing an additional 123 shares in the last quarter. Finally, State of Tennessee Department of Treasury boosted its position in Monolithic Power Systems by 1.7% during the fourth quarter. State of Tennessee Department of Treasury now owns 11,845 shares of the semiconductor company's stock worth $7,009,000 after purchasing an additional 197 shares in the last quarter. Institutional investors and hedge funds own 93.46% of the company's stock.

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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