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

Key Points

• Monolithic Power Systems has a consensus analyst rating of “Moderate Buy”, with 12 buy ratings and 3 hold ratings across 15 firms. The average 1-year price target is about $1,599.17.
• The company reported strong quarterly results, including EPS of $5.10 versus the $4.90 estimate and revenue of $804.19 million, both above expectations. Revenue also rose 26.1% from the same quarter last year.
• Monolithic Power Systems recently declared a $2.00 quarterly dividend payable July 15, and insiders have been active sellers, including a large sale by EVP Deming Xiao. The stock was trading near $1,498.77 with a market cap of $73.63 billion.

Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the fifteen ratings firms that are covering the firm, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a hold recommendation and twelve have assigned a buy recommendation to the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $1,599.1667.

Several equities analysts recently weighed in on MPWR shares. Zacks Research cut shares of Monolithic Power Systems from a "strong-buy" rating to a "hold" rating in a research report on Friday, April 10th. Rosenblatt Securities raised their price target on shares of Monolithic Power Systems from $1,000.00 to $1,575.00 and gave the company a "neutral" rating in a research report on Friday, May 1st. TD Cowen raised their price target on shares of Monolithic Power Systems from $1,550.00 to $1,850.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Wells Fargo & Company raised their price target on shares of Monolithic Power Systems from $1,650.00 to $1,860.00 and gave the company an "overweight" rating in a research report on Friday, May 1st. Finally, Needham & Company LLC raised their price target on shares of Monolithic Power Systems from $1,300.00 to $1,750.00 and gave the company a "buy" rating in a research report on Friday, May 1st.

Monolithic Power Systems Price Performance

MPWR stock opened at $1,498.77 on Wednesday. The stock has a market capitalization of $73.63 billion, a PE ratio of 108.06, a price-to-earnings-growth ratio of 2.96 and a beta of 1.69. The company's 50-day moving average is $1,528.55 and its 200-day moving average is $1,219.57. Monolithic Power Systems has a 1 year low of $671.18 and a 1 year high of $1,714.09.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The semiconductor company reported $5.10 earnings per share for the quarter, beating the consensus estimate of $4.90 by $0.20. Monolithic Power Systems had a net margin of 22.84% and a return on equity of 19.58%. The business had revenue of $804.19 million for the quarter, compared to analysts' expectations of $781.93 million. During the same quarter last year, the firm earned $4.04 EPS. The firm's revenue for the quarter was up 26.1% compared to the same quarter last year. On average, analysts anticipate that Monolithic Power Systems will post 20.13 earnings per share for the current fiscal year.

Monolithic Power Systems Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be given a $2.00 dividend. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $8.00 annualized dividend and a yield of 0.5%. Monolithic Power Systems's dividend payout ratio (DPR) is presently 57.68%.

Insiders Place Their Bets

In other Monolithic Power Systems news, EVP Deming Xiao sold 30,000 shares of the stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $1,654.55, for a total value of $49,636,500.00. Following the completion of the sale, the executive vice president owned 205,959 shares in the company, valued at approximately $340,769,463.45. This trade represents a 12.71% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Jeff Zhou sold 1,014 shares of the stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $1,587.06, for a total transaction of $1,609,278.84. Following the completion of the sale, the director owned 4,786 shares of the company's stock, valued at approximately $7,595,669.16. This trade represents a 17.48% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 113,073 shares of company stock worth $160,875,958 in the last 90 days. Company insiders own 3.60% of the company's stock.

Institutional Investors Weigh In On Monolithic Power Systems

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in Monolithic Power Systems in the 4th quarter valued at about $34,000. IFP Advisors Inc increased its stake in Monolithic Power Systems by 171.4% in the 3rd quarter. IFP Advisors Inc now owns 38 shares of the semiconductor company's stock valued at $35,000 after buying an additional 24 shares during the last quarter. Covestor Ltd increased its stake in Monolithic Power Systems by 29.0% in the 4th quarter. Covestor Ltd now owns 40 shares of the semiconductor company's stock valued at $36,000 after buying an additional 9 shares during the last quarter. Sunbelt Securities Inc. increased its stake in Monolithic Power Systems by 233.3% in the 1st quarter. Sunbelt Securities Inc. now owns 40 shares of the semiconductor company's stock valued at $44,000 after buying an additional 28 shares during the last quarter. Finally, Greenline Wealth Management LLC purchased a new stake in Monolithic Power Systems in the 4th quarter valued at about $38,000. Hedge funds and other institutional investors own 93.46% of the company's stock.

Monolithic Power Systems Company Profile

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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