Monolithic Power Systems (NASDAQ:MPWR) Shares Gap Down - What's Next?

Key Points

• Monolithic Power Systems (NASDAQ: MPWR) gapped down at the open and was last down about 6.7%, trading near $1,332 after closing at $1,438.30 the prior day.
• Despite the drop, Wall Street remains constructive: analysts have a Moderate Buy consensus on the stock, with an average price target of $1,599.17 and several recent target hikes from firms like KeyCorp, Wells Fargo, and Stifel.
• The company recently beat quarterly expectations, reporting $5.10 EPS on $804.19 million in revenue, and it also announced a $2.00 per share quarterly dividend payable July 15.

Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report)'s share price gapped down prior to trading on Friday . The stock had previously closed at $1,438.30, but opened at $1,357.45. Monolithic Power Systems shares last traded at $1,332.2630, with a volume of 163,355 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on MPWR shares. KeyCorp boosted 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 report on Friday, May 1st. Citigroup reiterated a "buy" rating on shares of Monolithic Power Systems in a report on Friday, May 1st. Stifel Nicolaus increased their price objective on Monolithic Power Systems from $1,300.00 to $1,500.00 and gave the company a "buy" rating in a report on Thursday, April 16th. Wells Fargo & Company raised their target price on Monolithic Power Systems from $1,650.00 to $1,860.00 and gave the stock an "overweight" rating in a research report on Friday, May 1st. Finally, Weiss Ratings upgraded shares of Monolithic Power Systems from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, June 12th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, Monolithic Power Systems currently has a consensus rating of "Moderate Buy" and an average price target of $1,599.17.

Monolithic Power Systems Stock Down 6.7%

The stock has a market capitalization of $65.90 billion, a P/E ratio of 96.29, a PEG ratio of 2.57 and a beta of 1.69. The company has a 50 day moving average of $1,554.51 and a 200-day moving average of $1,246.33.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last issued its earnings results on Thursday, April 30th. The semiconductor company reported $5.10 earnings per share for the quarter, topping analysts' consensus estimates of $4.90 by $0.20. The company had revenue of $804.19 million for the quarter, compared to analysts' expectations of $781.93 million. Monolithic Power Systems had a net margin of 22.84% and a return on equity of 19.58%. The firm's revenue was up 26.1% compared to the same quarter last year. During the same period in the prior year, the company earned $4.04 earnings per share. Equities analysts forecast that Monolithic Power Systems, Inc. will post 20.13 EPS for the current fiscal year.

Monolithic Power Systems Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th will be issued a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Tuesday, June 30th. Monolithic Power Systems's payout ratio is currently 57.68%.

Insider Buying and Selling

In other Monolithic Power Systems news, EVP Saria Tseng sold 25,674 shares of the firm's stock in a transaction dated 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 transaction, the executive vice president directly owned 174,982 shares in the company, valued at $176,819,311. This trade represents a 12.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Deming Xiao sold 30,000 shares of the business's stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $1,654.55, for a total value of $49,636,500.00. Following the transaction, the executive vice president owned 205,959 shares in the company, valued at $340,769,463.45. This represents a 12.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 113,043 shares of company stock worth $160,843,106. Insiders own 3.60% of the company's stock.

Hedge Funds Weigh In On Monolithic Power Systems

Several hedge funds have recently added to or reduced their stakes in the stock. Royal Fund Management LLC increased its holdings in Monolithic Power Systems by 2.7% during the 1st quarter. Royal Fund Management LLC now owns 264 shares of the semiconductor company's stock worth $289,000 after purchasing an additional 7 shares in the last quarter. Covestor Ltd boosted its position in Monolithic Power Systems by 29.0% during the fourth quarter. Covestor Ltd now owns 40 shares of the semiconductor company's stock worth $36,000 after purchasing an additional 9 shares during the period. Bell Investment Advisors Inc increased its stake in shares of Monolithic Power Systems by 23.7% during the first quarter. Bell Investment Advisors Inc now owns 47 shares of the semiconductor company's stock worth $51,000 after purchasing an additional 9 shares during the period. Resonant Capital Advisors LLC lifted its holdings in shares of Monolithic Power Systems by 4.1% during the fourth quarter. Resonant Capital Advisors LLC now owns 253 shares of the semiconductor company's stock worth $230,000 after buying an additional 10 shares in the last quarter. Finally, CENTRAL TRUST Co boosted its stake in shares of Monolithic Power Systems by 1.4% in the first quarter. CENTRAL TRUST Co now owns 701 shares of the semiconductor company's stock valued at $766,000 after buying an additional 10 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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