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

Key Points

• Monolithic Power Systems, Inc. (NASDAQ:MPWR) has received an average rating of "Moderate Buy" from twelve brokerages, with a 12-month price objective averaging $880.50.
• Insider trading activity includes Director Jeff Zhou selling 193 shares at $870.00 and CFO Theodore Blegen selling 3,000 shares at $913.22, indicating a decrease in their positions.
• The company reported strong quarterly earnings with $4.21 earnings per share, surpassing estimates, alongside a quarterly dividend of $1.56 per share set to be paid on October 15th.

Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report) has been assigned an average rating of "Moderate Buy" from the twelve brokerages that are presently covering the firm, MarketBeat Ratings reports. Three investment analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $880.50.

MPWR has been the topic of a number of research reports. Loop Capital raised their price objective on Monolithic Power Systems from $760.00 to $800.00 and gave the stock a "buy" rating in a report on Wednesday, July 23rd. Oppenheimer restated an "outperform" rating and issued a $800.00 price objective (up from $700.00) on shares of Monolithic Power Systems in a report on Tuesday, July 15th. Weiss Ratings restated a "hold (c+)" rating on shares of Monolithic Power Systems in a report on Wednesday. Needham & Company LLC raised their price objective on Monolithic Power Systems from $820.00 to $1,025.00 and gave the stock a "buy" rating in a report on Monday, September 29th. Finally, William Blair upgraded Monolithic Power Systems to a "strong-buy" rating in a report on Wednesday, August 13th.

Insider Activity

In other Monolithic Power Systems news, Director Jeff Zhou sold 193 shares of the firm's stock in a transaction that occurred on Wednesday, August 27th. The stock was sold at an average price of $870.00, for a total transaction of $167,910.00. Following the completion of the sale, the director owned 5,611 shares in the company, valued at $4,881,570. This trade represents a 3.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Theodore Blegen sold 3,000 shares of the stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $913.22, for a total value of $2,739,660.00. Following the transaction, the chief financial officer directly owned 37,940 shares in the company, valued at approximately $34,647,566.80. This represents a 7.33% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 65,702 shares of company stock worth $53,834,480 over the last quarter. Corporate insiders own 3.40% of the company's stock.

Institutional Trading of Monolithic Power Systems

Hedge funds have recently added to or reduced their stakes in the business. Wealth Enhancement Advisory Services LLC increased its position in shares of Monolithic Power Systems by 13.3% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 3,719 shares of the semiconductor company's stock valued at $2,157,000 after purchasing an additional 438 shares during the period. OneDigital Investment Advisors LLC acquired a new position in shares of Monolithic Power Systems during the 1st quarter valued at $204,000. Praxis Investment Management Inc. acquired a new position in shares of Monolithic Power Systems during the 1st quarter valued at $980,000. Jackson Wealth Management LLC increased its position in shares of Monolithic Power Systems by 29.5% during the 1st quarter. Jackson Wealth Management LLC now owns 2,896 shares of the semiconductor company's stock valued at $1,680,000 after purchasing an additional 659 shares during the period. Finally, DAVENPORT & Co LLC increased its position in shares of Monolithic Power Systems by 52.6% during the 1st quarter. DAVENPORT & Co LLC now owns 653 shares of the semiconductor company's stock valued at $379,000 after purchasing an additional 225 shares during the period. Institutional investors own 93.46% of the company's stock.

Monolithic Power Systems Stock Performance

Monolithic Power Systems stock opened at $979.25 on Friday. The firm has a market capitalization of $46.90 billion, a price-to-earnings ratio of 25.50, a price-to-earnings-growth ratio of 3.65 and a beta of 1.27. Monolithic Power Systems has a fifty-two week low of $438.86 and a fifty-two week high of $986.63. The stock's fifty day moving average is $865.59 and its two-hundred day moving average is $727.68.

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 (EPS) for the quarter, beating the consensus estimate 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 business had revenue of $664.57 million for the quarter, compared to the consensus estimate of $648.74 million. During the same period in the prior year, the business earned $3.17 earnings per share. The business's revenue was up 31.0% on a year-over-year basis. Monolithic Power Systems has set its Q3 2025 guidance at EPS. As a group, sell-side analysts forecast that Monolithic Power Systems will post 13.2 EPS for the current fiscal year.

Monolithic Power Systems Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Tuesday, September 30th will be paid a dividend of $1.56 per share. This represents a $6.24 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date is Tuesday, September 30th. Monolithic Power Systems's dividend payout ratio (DPR) is 16.25%.

About Monolithic Power Systems

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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