Monolithic Power Systems (NASDAQ:MPWR) Reaches New 12-Month High - Should You Buy?

Key Points

• Monolithic Power Systems hit a new 52-week high, trading as high as $1,697.50 after rising 4.9% on the day.
• Analysts have turned more bullish on the stock, with several raising price targets; the consensus rating is now Moderate Buy with an average target of $1,599.17.
• The company posted strong quarterly results, beating EPS and revenue estimates, while insiders have recently sold shares and institutional ownership remains high at 93.46%.

Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report)'s share price reached a new 52-week high during trading on Tuesday . The stock traded as high as $1,697.50 and last traded at $1,695.72, with a volume of 120537 shares. The stock had previously closed at $1,589.81.

Analysts Set New Price Targets

MPWR has been the topic of several recent analyst reports. KeyCorp increased their target price on shares of Monolithic Power Systems from $1,500.00 to $2,000.00 and gave the stock an "overweight" rating in a research note on Friday, May 1st. Rosenblatt Securities lifted their target price 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. Needham & Company LLC lifted their target price 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. TD Cowen lifted 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 report on Friday, May 1st. Finally, William Blair reiterated an "outperform" rating on shares of Monolithic Power Systems in a research report on Thursday, March 5th. Twelve analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,599.17.

Monolithic Power Systems Trading Up 4.9%

The company has a fifty day moving average price of $1,367.31 and a two-hundred day moving average price of $1,144.84. The firm has a market capitalization of $81.96 billion, a price-to-earnings ratio of 120.27, a PEG ratio of 2.84 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 EPS for the quarter, topping analysts' consensus estimates 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 company had revenue of $804.19 million for the quarter, compared to the consensus estimate of $781.93 million. During the same period in the previous year, the firm earned $4.04 earnings per share. Monolithic Power Systems's quarterly revenue was up 26.1% compared to the same quarter last year. As a group, equities research analysts expect that Monolithic Power Systems, Inc. will post 20.13 earnings per share for the current year.

Insider Activity

In related news, Director Jeff Zhou sold 500 shares of the firm's stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $1,650.00, for a total transaction of $825,000.00. Following the completion of the sale, the director directly owned 4,286 shares of the company's stock, valued at approximately $7,071,900. This trade represents a 10.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Eugen J. Elmiger sold 12,000 shares of the firm's stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $1,584.96, for a total value of $19,019,520.00. Following the sale, the director directly owned 5,402 shares of the company's stock, valued at $8,561,953.92. The trade was a 68.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 99,992 shares of company stock worth $139,220,810. 3.40% of the stock is currently owned by corporate insiders.

Institutional Trading of Monolithic Power Systems

Hedge funds have recently made changes to their positions in the business. Penserra Capital Management LLC increased its stake in shares of Monolithic Power Systems by 88.9% during the third quarter. Penserra Capital Management LLC now owns 2,191 shares of the semiconductor company's stock worth $2,016,000 after buying an additional 1,031 shares during the period. AE Wealth Management LLC purchased a new stake in shares of Monolithic Power Systems during the third quarter worth approximately $1,121,000. Candriam S.C.A. increased its stake in shares of Monolithic Power Systems by 6.9% during the third quarter. Candriam S.C.A. now owns 85,907 shares of the semiconductor company's stock worth $79,089,000 after buying an additional 5,561 shares during the period. First Trust Advisors LP increased its stake in shares of Monolithic Power Systems by 66.4% during the third quarter. First Trust Advisors LP now owns 447,801 shares of the semiconductor company's stock worth $412,263,000 after buying an additional 178,622 shares during the period. Finally, Vanguard Group Inc. increased its stake in shares of Monolithic Power Systems by 2.3% during the third quarter. Vanguard Group Inc. now owns 6,074,033 shares of the semiconductor company's stock worth $5,591,998,000 after buying an additional 134,087 shares during the period. Institutional investors and hedge funds 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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