Monolithic Power Systems (NASDAQ:MPWR) Hits New 1-Year High - Still a Buy?

Key Points

• New 52‑week high: Shares reached $1,662 (last $1,651.86), valuing MPWR at about $81.2B, and several firms (Needham, Wells Fargo, Truist) raised price targets or reiterated buy/overweight ratings, leaving an average analyst target near $1,599 and a "Moderate Buy" consensus.
• Quarterly beat and strong growth: MPWR reported $5.10 EPS versus $4.90 expected and revenue of $804.2M (+26.1% YoY), with solid margins and analysts forecasting roughly $17.01 EPS for the year.
• Dividend up but insiders selling: The company raised the quarterly dividend to $2.00 ($8.00 annualized, ~0.5% yield) while insiders sold about 135,093 shares (~$155M) in the past three months, though institutional ownership remains very high (93.46%).

Shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report) hit a new 52-week high on Wednesday . The stock traded as high as $1,662.00 and last traded at $1,651.8550, with a volume of 494293 shares changing hands. The stock had previously closed at $1,588.12.

Analyst Ratings Changes

MPWR has been the subject of several analyst reports. William Blair restated an "outperform" rating on shares of Monolithic Power Systems in a report on Thursday, March 5th. Citigroup reiterated a "buy" rating on shares of Monolithic Power Systems in a report on Friday, May 1st. Needham & Company LLC increased their price objective on Monolithic Power Systems from $1,300.00 to $1,750.00 and gave the stock a "buy" rating in a report on Friday, May 1st. Wells Fargo & Company increased their price objective on Monolithic Power Systems from $1,650.00 to $1,860.00 and gave the stock an "overweight" rating in a report on Friday, May 1st. Finally, Truist Financial set a $1,805.00 price objective on Monolithic Power Systems in a report on Friday, May 1st. Twelve research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $1,599.17.

Monolithic Power Systems Stock Performance

The stock has a market cap of $81.18 billion, a P/E ratio of 119.13, a price-to-earnings-growth ratio of 3.31 and a beta of 1.74. The firm has a 50-day moving average price of $1,236.23 and a 200-day moving average price of $1,091.50.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last announced its earnings results on Thursday, April 30th. The semiconductor company reported $5.10 earnings per share (EPS) 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 firm had revenue of $804.19 million during the quarter, compared to analyst estimates of $781.93 million. During the same quarter in the prior year, the company earned $4.04 EPS. The business's revenue was up 26.1% compared to the same quarter last year. On average, research analysts predict that Monolithic Power Systems, Inc. will post 17.01 earnings per share for the current year.

Monolithic Power Systems Increases Dividend

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

Insider Transactions at Monolithic Power Systems

In related news, EVP Saria Tseng sold 25,674 shares of the firm's stock in a transaction that occurred on Monday, March 30th. The stock was sold at an average price of $1,010.50, for a total transaction of $25,943,577.00. Following the completion of the transaction, the executive vice president owned 174,982 shares of the company's stock, valued at $176,819,311. This trade represents a 12.80% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Theodore Blegen sold 21,725 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $1,171.16, for a total value of $25,443,451.00. Following the transaction, the chief financial officer directly owned 82,353 shares of the company's stock, valued at approximately $96,448,539.48. This trade represents a 20.87% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 135,093 shares of company stock worth $155,398,677. 3.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MPWR. Thurston Springer Miller Herd & Titak Inc. bought a new position in Monolithic Power Systems during the 4th quarter valued at approximately $34,000. IFP Advisors Inc increased its position in Monolithic Power Systems by 171.4% during 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 in the last quarter. Covestor Ltd increased its holdings in shares of Monolithic Power Systems by 29.0% in the 4th quarter. Covestor Ltd now owns 40 shares of the semiconductor company's stock worth $36,000 after purchasing an additional 9 shares in the last quarter. Greenline Wealth Management LLC bought a new stake in shares of Monolithic Power Systems in the 4th quarter worth $38,000. Finally, Cornerstone Planning Group LLC increased its holdings in shares of Monolithic Power Systems by 542.9% in the 3rd quarter. Cornerstone Planning Group LLC now owns 45 shares of the semiconductor company's stock worth $41,000 after purchasing an additional 38 shares in the last quarter. 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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