Monolithic Power Systems (NASDAQ:MPWR) Director Sells $1,609,278.84 in Stock

Key Points

• Director Jeff Zhou sold shares: Zhou sold 1,014 shares on May 5 at an average $1,587.06 ($1.61M) and 500 shares on May 6 (~$825k), totaling ~1,514 shares and ~$2.43M in proceeds, reducing his stake by 17.48% to 4,786 shares (~$7.6M).
• Strong quarterly results spurred upgrades: MPS beat April-quarter estimates with $5.10 EPS vs. $4.90 expected and $804.2M revenue, leading analysts to raise estimates and the stock to rally (trading near $1,652).
• Dividend raised amid rich valuation: The company increased its quarterly dividend to $2.00 ($8.00 annualized, ~0.5% yield), while the stock carries a high valuation (market cap ~$81.2B, P/E ≈119).

Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report) Director Jeff Zhou sold 1,014 shares of the company's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $1,587.06, for a total value of $1,609,278.84. Following the completion of the transaction, the director directly owned 4,786 shares in the company, valued at approximately $7,595,669.16. The trade was a 17.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink.

Jeff Zhou also recently made the following trade(s):

• On Wednesday, May 6th, Jeff Zhou sold 500 shares of Monolithic Power Systems stock. The stock was sold at an average price of $1,650.00, for a total value of $825,000.00.

Monolithic Power Systems Trading Up 4.0%

MPWR stock traded up $64.23 during mid-day trading on Wednesday, hitting $1,652.35. The stock had a trading volume of 853,839 shares, compared to its average volume of 626,466. Monolithic Power Systems, Inc. has a 1-year low of $613.00 and a 1-year high of $1,662.00. The company has a fifty day moving average of $1,245.48 and a 200 day moving average of $1,095.91. The stock has a market capitalization of $81.18 billion, a price-to-earnings ratio of 119.13, a PEG ratio of 3.27 and a beta of 1.74.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last issued its earnings results on Thursday, April 30th. The semiconductor company reported $5.10 earnings per share for the quarter, topping the consensus estimate of $4.90 by $0.20. Monolithic Power Systems had a return on equity of 19.58% and a net margin of 22.84%.The company had revenue of $804.19 million for the quarter, compared to analyst estimates of $781.93 million. During the same period in the prior year, the firm posted $4.04 EPS. The business's revenue was up 26.1% compared to the same quarter last year. As a group, sell-side analysts expect that Monolithic Power Systems, Inc. will post 17.39 earnings per share for the current fiscal year.

Monolithic Power Systems Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were paid a dividend of $2.00 per share. This is a boost from Monolithic Power Systems's previous quarterly dividend of $1.56. The ex-dividend date was Tuesday, March 31st. This represents a $8.00 annualized dividend and a dividend yield of 0.5%. Monolithic Power Systems's dividend payout ratio is currently 57.68%.

Key Stories Impacting Monolithic Power Systems

Here are the key news stories impacting Monolithic Power Systems this week:

• Positive Sentiment: Analysts raised estimates and upgraded the stock following a strong April-quarter report (beat on EPS and revenue) and bullish commentary about MPWR’s AI-related growth, supporting the recent rally. Monolithic Power Systems: AI Stock Beat, Raised and Upgraded Post-Earnings
• Neutral Sentiment: EVP Maurice Sciammas executed a small sale of 30 shares on May 4 under a pre-arranged Rule 10b5-1 plan (≈$47.7k), which reduces the negative signal typically associated with insider selling. The 10b5-1 filing is available here: SEC Filing: Sciammas 10b5-1 Sale
• Negative Sentiment: Director Jeff Zhou sold 1,014 shares on May 5 (~$1.61M) and 500 shares on May 6 (~$825k), totaling ~1,514 shares and ~$2.43M of proceeds; these transactions reduced his stake by double-digit percentages and may be viewed negatively by some investors. SEC disclosure: SEC Filing: Zhou Sales
• Negative Sentiment: EVP Maurice Sciammas also sold 380 shares on May 5 (~$601.8k), reducing his holding by ~29%, which is a larger, possibly negative signal despite the smaller dollar amount versus director sales. SEC disclosure: SEC Filing: Sciammas Sale

Institutional Trading of Monolithic Power Systems

Several hedge funds have recently added to or reduced their stakes in MPWR. Vanguard Group Inc. lifted its position in shares of Monolithic Power Systems by 2.3% in the 3rd quarter. Vanguard Group Inc. now owns 6,074,033 shares of the semiconductor company's stock worth $5,591,998,000 after acquiring an additional 134,087 shares during the period. State Street Corp lifted its position in shares of Monolithic Power Systems by 2.1% in the 4th quarter. State Street Corp now owns 2,180,419 shares of the semiconductor company's stock worth $1,979,610,000 after acquiring an additional 45,715 shares during the period. Corient Private Wealth LLC lifted its position in shares of Monolithic Power Systems by 3,719.6% in the 4th quarter. Corient Private Wealth LLC now owns 2,047,173 shares of the semiconductor company's stock worth $1,855,476,000 after acquiring an additional 1,993,576 shares during the period. Price T Rowe Associates Inc. MD lifted its position in shares of Monolithic Power Systems by 7.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,691,394 shares of the semiconductor company's stock worth $1,533,013,000 after acquiring an additional 117,596 shares during the period. Finally, Invesco Ltd. lifted its position in shares of Monolithic Power Systems by 25.9% in the 4th quarter. Invesco Ltd. now owns 1,434,689 shares of the semiconductor company's stock worth $1,300,345,000 after acquiring an additional 295,556 shares during the period. Institutional investors own 93.46% of the company's stock.

Analyst Ratings Changes

Several analysts have recently issued reports on MPWR shares. William Blair reiterated an "outperform" rating on shares of Monolithic Power Systems in a research note on Thursday, March 5th. Raymond James Financial reiterated an "outperform" rating and set a $1,800.00 price target on shares of Monolithic Power Systems in a research note on Friday, May 1st. Needham & Company LLC upped their price target on Monolithic Power Systems from $1,300.00 to $1,750.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. TD Cowen raised their target price on shares of Monolithic Power Systems from $1,550.00 to $1,850.00 and gave the company a "buy" rating in a research note on Friday, May 1st. Finally, Wells Fargo & Company raised their target price on shares of Monolithic Power Systems from $1,650.00 to $1,860.00 and gave the company an "overweight" rating in a research note on Friday, May 1st. Twelve investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $1,599.17.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.