Monolithic Power Systems (NASDAQ:MPWR) Trading Up 6.2% on Strong Earnings

Key Points

• Monolithic Power Systems shares surged by 6.2% to $755.48 after reporting quarterly earnings of $4.21 EPS, exceeding analyst expectations of $4.12 and generating revenue of $664.57 million, above the projected $648.74 million.
• The company declared a quarterly dividend of $1.56 per share, resulting in an annualized dividend of $6.24 and a yield of 0.8%, with a modest payout ratio of 16.56%.
• A strong consensus rating of "Moderate Buy" from analysts for Monolithic Power Systems includes an average price target of $834.08, with several firms raising their target prices significantly following the earnings announcement.

Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report)'s share price traded up 6.2% during trading on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $759.10 and last traded at $755.48. 337,529 shares changed hands during trading, a decline of 58% from the average session volume of 811,561 shares. The stock had previously closed at $711.24.

The semiconductor company reported $4.21 EPS for the quarter, beating analysts' consensus estimates of $4.12 by $0.09. The company had revenue of $664.57 million for the quarter, compared to analysts' expectations of $648.74 million. Monolithic Power Systems had a net margin of 76.59% and a return on equity of 19.80%. Monolithic Power Systems's revenue was up 31.0% compared to the same quarter last year. During the same period in the prior year, the company posted $3.17 EPS.

Monolithic Power Systems Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 15th. Investors of record on Monday, June 30th were paid a dividend of $1.56 per share. This represents a $6.24 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Monday, June 30th. Monolithic Power Systems's dividend payout ratio is presently 16.56%.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Oppenheimer restated an "outperform" rating and set a $800.00 price target (up from $700.00) on shares of Monolithic Power Systems in a research note on Tuesday, July 15th. Loop Capital raised their price target on shares of Monolithic Power Systems from $760.00 to $800.00 and gave the stock a "buy" rating in a report on Wednesday, July 23rd. Rosenblatt Securities reissued a "neutral" rating and issued a $800.00 price target on shares of Monolithic Power Systems in a report on Friday. Wells Fargo & Company raised their price target on shares of Monolithic Power Systems from $695.00 to $730.00 and gave the stock an "equal weight" rating in a report on Wednesday, July 16th. Finally, KeyCorp raised their price target on shares of Monolithic Power Systems from $940.00 to $950.00 and gave the stock an "overweight" rating in a report on Friday. Two equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $834.08.

Insider Activity at Monolithic Power Systems

In related news, EVP Maurice Sciammas sold 12,000 shares of the business'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 transaction of $8,412,000.00. Following the completion of the sale, the executive vice president directly owned 4,015 shares in the company, valued at approximately $2,814,515. The trade was a 74.93% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Kuo Wei Herbert Chang sold 100 shares of the business's stock in a transaction that occurred on Monday, May 12th. The shares were sold at an average price of $698.00, for a total transaction of $69,800.00. Following the sale, the director owned 676 shares of the company's stock, valued at $471,848. This trade represents a 12.89% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 18,200 shares of company stock worth $13,046,800. 3.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On Monolithic Power Systems

A number of hedge funds have recently modified their holdings of the company. Vanguard Group Inc. boosted its position in shares of Monolithic Power Systems by 1.7% in the first quarter. Vanguard Group Inc. now owns 5,920,669 shares of the semiconductor company's stock worth $3,433,870,000 after purchasing an additional 96,395 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in shares of Monolithic Power Systems by 33.1% in the first quarter. Price T Rowe Associates Inc. MD now owns 2,034,731 shares of the semiconductor company's stock worth $1,180,104,000 after buying an additional 506,430 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of Monolithic Power Systems by 2.3% in the fourth quarter. Geode Capital Management LLC now owns 1,365,459 shares of the semiconductor company's stock worth $807,158,000 after buying an additional 31,295 shares in the last quarter. Invesco Ltd. lifted its holdings in shares of Monolithic Power Systems by 7.5% in the first quarter. Invesco Ltd. now owns 1,249,335 shares of the semiconductor company's stock worth $724,589,000 after buying an additional 86,853 shares in the last quarter. Finally, Brown Advisory Inc. lifted its holdings in shares of Monolithic Power Systems by 0.5% in the fourth quarter. Brown Advisory Inc. now owns 986,005 shares of the semiconductor company's stock worth $583,420,000 after buying an additional 5,274 shares in the last quarter. 93.46% of the stock is currently owned by institutional investors.

Monolithic Power Systems Stock Up 5.5%

The firm's fifty day moving average price is $712.10 and its 200 day moving average price is $648.04. The stock has a market cap of $35.92 billion, a PE ratio of 19.91, a P/E/G ratio of 2.90 and a beta of 1.20.

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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