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

Key Points

• Shares of Monolithic Power Systems reached a new 12-month high, trading at $1,007.93, with a recent volume of 631,920 shares.
• Analysts have upgraded their price targets for the stock, with some predicting a target as high as $1,100.00, reflecting strong confidence in the company's performance.
• The company reported earnings of $4.21 EPS for the last quarter, exceeding expectations and showing a substantial 31.0% year-over-year revenue increase.

Shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report) hit a new 52-week high during trading on Thursday . The stock traded as high as $1,016.96 and last traded at $1,007.93, with a volume of 631920 shares changing hands. The stock had previously closed at $968.25.

Analyst Upgrades and Downgrades

MPWR has been the subject of several recent research reports. KeyCorp raised their price target on shares of Monolithic Power Systems from $950.00 to $1,050.00 and gave the company an "overweight" rating in a research report on Tuesday, September 30th. Weiss Ratings reissued a "hold (c+)" rating on shares of Monolithic Power Systems in a research report on Wednesday, October 8th. Stifel Nicolaus raised their price target on shares of Monolithic Power Systems from $880.00 to $930.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Citigroup lifted their price objective on shares of Monolithic Power Systems from $825.00 to $1,100.00 and gave the stock a "buy" rating in a research report on Friday, October 3rd. Finally, Rosenblatt Securities reaffirmed a "neutral" rating and set a $800.00 price objective on shares of Monolithic Power Systems in a research report on Friday, August 1st. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $909.55.

Monolithic Power Systems Trading Up 4.1%

The company's 50 day moving average is $878.34 and its 200 day moving average is $737.66. The stock has a market capitalization of $48.27 billion, a price-to-earnings ratio of 26.25, a price-to-earnings-growth ratio of 3.61 and a beta of 1.27.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The semiconductor company reported $4.21 EPS for the quarter, topping the consensus estimate of $4.12 by $0.09. Monolithic Power Systems had a net margin of 73.17% and a return on equity of 19.14%. The firm had revenue of $664.57 million for the quarter, compared to analyst estimates of $648.74 million. During the same period last year, the business earned $3.17 EPS. Monolithic Power Systems's revenue for the quarter was up 31.0% compared to the same quarter last year. Monolithic Power Systems has set its Q3 2025 guidance at EPS. Analysts anticipate that Monolithic Power Systems, Inc. will post 13.2 EPS for the current fiscal year.

Monolithic Power Systems Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 15th. Investors of record on Tuesday, September 30th were paid a dividend of $1.56 per share. This represents a $6.24 annualized dividend and a yield of 0.6%. The ex-dividend date was Tuesday, September 30th. Monolithic Power Systems's dividend payout ratio (DPR) is currently 16.25%.

Insider Activity

In related news, EVP Deming Xiao sold 39,999 shares of Monolithic Power Systems stock in a transaction on Friday, August 1st. The shares were sold at an average price of $780.00, for a total transaction of $31,199,220.00. Following the sale, the executive vice president directly owned 121,605 shares in the company, valued at $94,851,900. This trade represents a 24.75% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jeff Zhou sold 193 shares of Monolithic Power Systems stock in a transaction on Wednesday, August 27th. The shares were sold at an average price of $870.00, for a total transaction of $167,910.00. Following the completion of the transaction, the director owned 5,611 shares in the company, valued at approximately $4,881,570. This represents a 3.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 65,702 shares of company stock worth $53,834,480 over the last three months. Company insiders own 3.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. CWM LLC increased its stake in Monolithic Power Systems by 3.5% in the third quarter. CWM LLC now owns 1,793 shares of the semiconductor company's stock valued at $1,651,000 after purchasing an additional 61 shares during the period. Pacer Advisors Inc. increased its stake in Monolithic Power Systems by 7.4% in the third quarter. Pacer Advisors Inc. now owns 57,643 shares of the semiconductor company's stock valued at $53,068,000 after purchasing an additional 3,968 shares during the period. Inspire Investing LLC increased its stake in Monolithic Power Systems by 3.3% in the third quarter. Inspire Investing LLC now owns 8,361 shares of the semiconductor company's stock valued at $7,697,000 after purchasing an additional 271 shares during the period. Norden Group LLC increased its stake in Monolithic Power Systems by 5.5% in the third quarter. Norden Group LLC now owns 1,585 shares of the semiconductor company's stock valued at $1,459,000 after purchasing an additional 83 shares during the period. Finally, Brookstone Capital Management acquired a new position in Monolithic Power Systems in the third quarter valued at $858,000. 93.46% of the stock is currently owned by institutional investors and hedge funds.

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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