Monolithic Power Systems (NASDAQ:MPWR) Trading Down 5% - Time to Sell?

Shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report) dropped 5% on Friday . The stock traded as low as $680.00 and last traded at $682.54. Approximately 392,050 shares changed hands during trading, a decline of 51% from the average daily volume of 797,386 shares. The stock had previously closed at $718.57.

Analyst Ratings Changes

MPWR has been the subject of a number of analyst reports. Wells Fargo & Company dropped their price objective on shares of Monolithic Power Systems from $710.00 to $665.00 and set an "equal weight" rating for the company in a report on Friday, March 21st. Citigroup raised their price target on shares of Monolithic Power Systems from $700.00 to $785.00 and gave the stock a "buy" rating in a report on Wednesday, June 4th. KeyCorp lowered their price objective on Monolithic Power Systems from $850.00 to $820.00 and set an "overweight" rating for the company in a research report on Friday, May 2nd. TD Cowen raised their target price on Monolithic Power Systems from $600.00 to $675.00 and gave the stock a "buy" rating in a research note on Friday, May 2nd. Finally, Oppenheimer reaffirmed an "outperform" rating and issued a $800.00 price target on shares of Monolithic Power Systems in a research note on Friday, March 21st. Two equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $786.92.

Monolithic Power Systems Stock Performance

The stock has a market capitalization of $32.42 billion, a price-to-earnings ratio of 18.44, a PEG ratio of 2.60 and a beta of 1.19. The company has a 50 day moving average of $625.54 and a 200 day moving average of $619.16.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last issued its earnings results on Thursday, May 1st. The semiconductor company reported $4.04 EPS for the quarter, topping analysts' consensus estimates of $4.00 by $0.04. The firm had revenue of $637.55 million during the quarter, compared to the consensus estimate of $633.43 million. Monolithic Power Systems had a net margin of 80.95% and a return on equity of 20.36%. The company's revenue was up 39.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.81 earnings per share. As a group, research analysts expect that Monolithic Power Systems, Inc. will post 13.2 EPS for the current fiscal year.

Insider Activity

In other news, Director Kuo Wei Herbert Chang sold 100 shares of the stock in a transaction dated Thursday, May 8th. The shares were sold at an average price of $650.00, for a total transaction of $65,000.00. Following the completion of the sale, the director now owns 776 shares in the company, valued at approximately $504,400. This represents a 11.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Maurice Sciammas sold 12,000 shares of the company's stock in a transaction that occurred on Monday, May 12th. The shares were sold at an average price of $701.00, for a total value of $8,412,000.00. Following the sale, the executive vice president now directly owns 4,015 shares of the company's stock, valued at approximately $2,814,515. This represents a 74.93% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 12,200 shares of company stock worth $8,546,800. Corporate insiders own 3.40% of the company's stock.

Hedge Funds Weigh In On Monolithic Power Systems

Hedge funds and other institutional investors have recently bought and sold shares of the company. ICICI Prudential Asset Management Co Ltd acquired a new stake in shares of Monolithic Power Systems in the 4th quarter worth $3,182,000. Boston Family Office LLC increased its position in Monolithic Power Systems by 1,031.6% during the 4th quarter. Boston Family Office LLC now owns 2,614 shares of the semiconductor company's stock worth $1,547,000 after purchasing an additional 2,383 shares during the period. Arrowstreet Capital Limited Partnership purchased a new position in shares of Monolithic Power Systems during the 4th quarter worth approximately $454,000. Plato Investment Management Ltd lifted its holdings in shares of Monolithic Power Systems by 257.4% in the 4th quarter. Plato Investment Management Ltd now owns 3,785 shares of the semiconductor company's stock valued at $2,248,000 after buying an additional 2,726 shares during the period. Finally, Polar Asset Management Partners Inc. purchased a new stake in shares of Monolithic Power Systems in the fourth quarter valued at approximately $11,834,000. 93.46% of the stock is currently owned by hedge funds and other institutional investors.

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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