Monolithic Power Systems (NASDAQ:MPWR) Stock Price Down 7% - What's Next?

Key Points

• Monolithic Power Systems shares fell about 7% intraday to roughly $1,326, with trading volume significantly below average. The stock’s market capitalization is approximately $66 billion, while its 50-day moving average is above its 200-day average.
• The company reported strong quarterly results, with EPS of $6.50 versus the $5.87 consensus and revenue of $980.64 million, up 47.6% year over year and above estimates. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $1,705.82.
• Monolithic Power Systems continues to pay a quarterly dividend of $2, equivalent to an annualized yield of about 0.6%, while insiders sold approximately $112.7 million of shares over the past three months. Institutional investors own 93.46% of the company.

Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report)'s share price fell 7% during mid-day trading on Monday . The stock traded as low as $1,315.90 and last traded at $1,326.3080. Approximately 150,672 shares changed hands during trading, a decline of 80% from the average session volume of 739,024 shares. The stock had previously closed at $1,426.03.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on MPWR shares. Oppenheimer set a $1,700.00 price objective on shares of Monolithic Power Systems in a research report on Friday, May 1st. Zacks Research upgraded Monolithic Power Systems from a "hold" rating to a "strong-buy" rating in a research note on Thursday, June 18th. Stifel Nicolaus increased their target price on Monolithic Power Systems from $1,300.00 to $1,500.00 and gave the company a "buy" rating in a research note on Thursday, April 16th. Rosenblatt Securities reissued a "neutral" rating and set a $1,575.00 price target on shares of Monolithic Power Systems in a research report on Friday. Finally, Citigroup restated a "buy" rating on shares of Monolithic Power Systems in a research note on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, Monolithic Power Systems currently has an average rating of "Moderate Buy" and a consensus price target of $1,705.82.

Monolithic Power Systems Trading Down 5.8%

The company has a market cap of $65.99 billion, a price-to-earnings ratio of 82.34 and a beta of 1.71. The firm has a 50-day moving average price of $1,440.58 and a 200 day moving average price of $1,316.72.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The semiconductor company reported $6.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.87 by $0.63. Monolithic Power Systems had a return on equity of 22.31% and a net margin of 24.41%.The business had revenue of $980.64 million for the quarter, compared to analyst estimates of $903.30 million. During the same period in the prior year, the company posted $4.21 EPS. The business's revenue was up 47.6% compared to the same quarter last year. Research analysts anticipate that Monolithic Power Systems, Inc. will post 20.2 earnings per share for the current fiscal year.

Monolithic Power Systems Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were given a $2.00 dividend. This represents a $8.00 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Tuesday, June 30th. Monolithic Power Systems's dividend payout ratio (DPR) is presently 49.05%.

Insiders Place Their Bets

In related news, 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 transaction of $49,636,500.00. Following the completion of the sale, the executive vice president owned 205,959 shares of the company's stock, valued at $340,769,463.45. This represents a 12.71% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Eugen J. Elmiger sold 12,000 shares of the stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $1,584.96, for a total transaction of $19,019,520.00. Following the sale, the director owned 5,402 shares in the company, valued at approximately $8,561,953.92. This trade represents a 68.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 69,340 shares of company stock worth $112,654,841. Corporate insiders own 3.60% of the company's stock.

Institutional Trading of Monolithic Power Systems

Hedge funds have recently made changes to their positions in the stock. Daymark Wealth Partners LLC acquired a new position in shares of Monolithic Power Systems during the second quarter valued at $338,000. Diversified Enterprises LLC increased its holdings in shares of Monolithic Power Systems by 7.8% in the 2nd quarter. Diversified Enterprises LLC now owns 208 shares of the semiconductor company's stock worth $288,000 after acquiring an additional 15 shares during the period. Simmons Bank lifted its position in Monolithic Power Systems by 7.3% in the 2nd quarter. Simmons Bank now owns 1,251 shares of the semiconductor company's stock valued at $1,729,000 after purchasing an additional 85 shares during the last quarter. Aberdeen Group plc boosted its stake in Monolithic Power Systems by 6.2% during the 2nd quarter. Aberdeen Group plc now owns 41,854 shares of the semiconductor company's stock valued at $57,857,000 after purchasing an additional 2,432 shares during the period. Finally, Kornitzer Capital Management Inc. KS boosted its stake in Monolithic Power Systems by 19.9% during the 2nd quarter. Kornitzer Capital Management Inc. KS now owns 5,010 shares of the semiconductor company's stock valued at $6,926,000 after purchasing an additional 833 shares during the period. Institutional investors 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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