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

Key Points

• Stock hits a new 52-week high — MPWR traded as high as $1,479.23 (last ~ $1,464) amid multiple analyst price-target increases, though the MarketBeat consensus target of $1,235.08 remains well below the current price.
• Quarterly results beat expectations — Q results: EPS $4.79 vs $4.74 estimate and revenue $751.16M (up 20.8% YoY), with a 22.07% net margin and sell‑side analysts projecting $13.2 EPS for the year.
• Dividend raised and notable insider selling — MPS increased its quarterly dividend to $2.00 ($8.00 annualized, 0.5% yield) while insiders have sold 137,683 shares (~$158M) in the last 90 days, leaving insiders owning 3.4% of the stock.

Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $1,479.23 and last traded at $1,463.8160, with a volume of 635499 shares traded. The stock had previously closed at $1,468.35.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the stock. Stifel Nicolaus increased their price objective on shares of Monolithic Power Systems from $1,300.00 to $1,500.00 and gave the stock a "buy" rating in a research report on Thursday. Wells Fargo & Company increased their price objective on shares of Monolithic Power Systems from $1,200.00 to $1,350.00 and gave the stock an "overweight" rating in a research report on Friday, February 6th. Truist Financial increased their price objective on shares of Monolithic Power Systems from $1,375.00 to $1,396.00 and gave the stock a "buy" rating in a research report on Friday, February 6th. KeyCorp increased their price objective on shares of Monolithic Power Systems from $1,300.00 to $1,500.00 and gave the stock an "overweight" rating in a research report on Friday, February 6th. Finally, Rosenblatt Securities raised their price target on shares of Monolithic Power Systems from $950.00 to $1,000.00 and gave the company a "neutral" rating in a report on Friday, February 6th. Twelve research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $1,235.08.

Monolithic Power Systems Stock Performance

The firm has a market capitalization of $71.92 billion, a price-to-earnings ratio of 115.08, a price-to-earnings-growth ratio of 3.72 and a beta of 1.48. The stock's fifty day moving average is $1,160.18 and its two-hundred day moving average is $1,049.24.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last announced its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $4.79 earnings per share for the quarter, topping the consensus estimate of $4.74 by $0.05. The company had revenue of $751.16 million during the quarter, compared to analyst estimates of $741.69 million. Monolithic Power Systems had a net margin of 22.07% and a return on equity of 18.33%. The firm's revenue for the quarter was up 20.8% compared to the same quarter last year. During the same period last year, the business earned $4.09 EPS. Sell-side analysts anticipate that Monolithic Power Systems, Inc. will post 13.2 earnings per share for the current year.

Monolithic Power Systems Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st were issued a dividend of $2.00 per share. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $8.00 annualized dividend and a 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 (DPR) is 62.79%.

Insider Buying and Selling

In other news, EVP Deming Xiao sold 22,875 shares of the firm's stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $1,171.16, for a total value of $26,790,285.00. Following the transaction, the executive vice president directly owned 235,932 shares in the company, valued at approximately $276,314,121.12. This trade represents a 8.84% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Theodore Blegen sold 21,725 shares of the firm's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $1,171.16, for a total transaction of $25,443,451.00. Following the completion of the transaction, the chief financial officer owned 82,353 shares in the company, valued at approximately $96,448,539.48. The trade was a 20.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 137,683 shares of company stock worth $158,138,447. Company insiders own 3.40% of the company's stock.

Institutional Trading of Monolithic Power Systems

Several hedge funds have recently bought and sold shares of the company. Covestor Ltd lifted its position 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 purchasing an additional 9 shares during the last quarter. Bell Investment Advisors Inc lifted its position in Monolithic Power Systems by 23.7% in the 1st quarter. Bell Investment Advisors Inc now owns 47 shares of the semiconductor company's stock valued at $51,000 after purchasing an additional 9 shares during the last quarter. Resonant Capital Advisors LLC lifted its position in Monolithic Power Systems by 4.1% in the 4th quarter. Resonant Capital Advisors LLC now owns 253 shares of the semiconductor company's stock valued at $230,000 after purchasing an additional 10 shares during the last quarter. CENTRAL TRUST Co lifted its position in Monolithic Power Systems by 1.4% in the 1st quarter. CENTRAL TRUST Co now owns 701 shares of the semiconductor company's stock valued at $766,000 after purchasing an additional 10 shares during the last quarter. Finally, True Wealth Design LLC lifted its position in Monolithic Power Systems by 61.1% in the 3rd quarter. True Wealth Design LLC now owns 29 shares of the semiconductor company's stock valued at $26,000 after purchasing an additional 11 shares during the last quarter. 93.46% of the stock is currently owned by institutional investors.

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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