Monolithic Power Systems (NASDAQ:MPWR) Sets New 52-Week High - Still a Buy?

Key Points

• Monolithic Power Systems (NASDAQ: MPWR) reached a new 52-week high of $954.81, with a last trading price of $943.75, showing strong investor interest.
• Wall Street analysts are optimistic about the stock's growth potential, with most ratings being "Buy" or "Strong Buy" and an average price target of $880.50.
• The company recently announced a quarterly dividend of $1.56 per share, reflecting an annualized yield of 0.7% and a low payout ratio of 16.25%.

Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Friday . The company traded as high as $954.81 and last traded at $943.75, with a volume of 89037 shares traded. The stock had previously closed at $930.51.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on MPWR shares. William Blair raised Monolithic Power Systems to a "strong-buy" rating in a research note on Wednesday, August 13th. Raymond James Financial reissued an "outperform" rating and issued a $875.00 price target (up from $720.00) on shares of Monolithic Power Systems in a research note on Friday, August 1st. Stifel Nicolaus raised their price target on Monolithic Power Systems from $880.00 to $930.00 and gave the stock a "buy" rating in a research note on Friday, August 1st. Wells Fargo & Company raised their price target on Monolithic Power Systems from $730.00 to $750.00 and gave the stock an "equal weight" rating in a research note on Friday, August 1st. Finally, KeyCorp raised their price target on Monolithic Power Systems from $950.00 to $1,050.00 and gave the stock an "overweight" rating in a research note on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $880.50.

Monolithic Power Systems Trading Down 1.3%

The business's 50-day simple moving average is $842.12 and its two-hundred day simple moving average is $715.87. The company has a market capitalization of $44.00 billion, a PE ratio of 23.93, a PEG ratio of 3.41 and a beta of 1.27.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The semiconductor company reported $4.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.12 by $0.09. Monolithic Power Systems had a return on equity of 19.14% and a net margin of 73.17%.The company had revenue of $664.57 million for the quarter, compared to the consensus estimate of $648.74 million. During the same period in the previous 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. On average, analysts forecast that Monolithic Power Systems, Inc. will post 13.2 EPS for the current year.

Monolithic Power Systems Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Tuesday, September 30th will be issued a dividend of $1.56 per share. The ex-dividend date is Tuesday, September 30th. This represents a $6.24 annualized dividend and a yield of 0.7%. Monolithic Power Systems's payout ratio is currently 16.25%.

Insider Activity at Monolithic Power Systems

In other Monolithic Power Systems news, EVP Saria Tseng sold 14,510 shares of Monolithic Power Systems stock in a transaction that occurred on Thursday, September 18th. The stock was sold at an average price of $914.45, for a total transaction of $13,268,669.50. Following the sale, the executive vice president directly owned 144,494 shares in the company, valued at $132,132,538.30. The trade was a 9.13% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Deming Xiao sold 39,999 shares of Monolithic Power Systems stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $780.00, for a total value of $31,199,220.00. Following the completion of the transaction, the executive vice president owned 121,605 shares of the company's stock, valued at approximately $94,851,900. The trade was a 24.75% decrease in their position. The disclosure for this sale can be found here. Insiders sold 65,702 shares of company stock worth $53,834,480 over the last ninety days. Company insiders own 3.40% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in MPWR. Norges Bank acquired a new position in Monolithic Power Systems during the 2nd quarter valued at approximately $438,014,000. Price T Rowe Associates Inc. MD boosted its position in Monolithic Power Systems by 33.1% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 2,034,731 shares of the semiconductor company's stock valued at $1,180,104,000 after purchasing an additional 506,430 shares during the period. JPMorgan Chase & Co. boosted its position in Monolithic Power Systems by 36.1% during the 2nd quarter. JPMorgan Chase & Co. now owns 856,725 shares of the semiconductor company's stock valued at $626,592,000 after purchasing an additional 227,159 shares during the period. Nuveen LLC acquired a new position in Monolithic Power Systems during the 1st quarter valued at approximately $105,751,000. Finally, Rafferty Asset Management LLC boosted its position in Monolithic Power Systems by 36.1% during the 2nd quarter. Rafferty Asset Management LLC now owns 529,124 shares of the semiconductor company's stock valued at $386,991,000 after purchasing an additional 140,269 shares during the period. Institutional investors and hedge funds own 93.46% of the company's stock.

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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