Monolithic Power Systems (NASDAQ:MPWR) Shares Up 13.3% - Here's Why

Key Points

• Monolithic Power Systems shares jumped 13.3% in mid-day trading, reaching about $1,349; trading volume was 69% below its daily average.
• The company beat quarterly expectations, reporting EPS of $8.19 versus $7.79 expected and revenue of $1.20 billion versus $1.16 billion expected. Revenue rose 63.1% year over year.
• Analyst sentiment is broadly positive: the consensus rating is “Buy,” with an average price target of $1,783.77; Rosenblatt upgraded the stock to “Buy” and raised its target to $1,700.

Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report)'s stock price shot up 13.3% during mid-day trading on Monday. The company traded as high as $1,336.27 and last traded at $1,348.8750. 237,168 shares traded hands during mid-day trading, a decline of 69% from the average daily volume of 755,601 shares. The stock had previously closed at $1,190.44.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on MPWR shares. Rosenblatt Securities raised shares of Monolithic Power Systems from a "neutral" rating to a "buy" rating and upped their price objective for the company from $1,575.00 to $1,700.00 in a research note on Friday, October 30th. Needham & Company LLC restated a "buy" rating on shares of Monolithic Power Systems in a report on Friday, October 30th. TD Cowen reaffirmed a "buy" rating on shares of Monolithic Power Systems in a research report on Friday, October 30th. Oppenheimer cut their price target on shares of Monolithic Power Systems from $1,700.00 to $1,500.00 and set an "outperform" rating on the stock in a research note on Friday, October 23rd. Finally, Wall Street Zen upgraded shares of Monolithic Power Systems from a "hold" rating to a "buy" rating in a report on Sunday, October 25th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Buy" and an average price target of $1,783.77.

Monolithic Power Systems Trading Up 14.0%

The stock has a market cap of $66.16 billion, a price-to-earnings ratio of 74.95 and a beta of 1.71. The stock's 50-day moving average is $1,267.39 and its 200-day moving average is $1,315.87.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last issued its quarterly earnings data on Thursday, October 29th. The semiconductor company reported $8.19 EPS for the quarter, topping analysts' consensus estimates of $7.79 by $0.40. The company had revenue of $1.20 billion for the quarter, compared to analysts' expectations of $1.16 billion. Monolithic Power Systems had a return on equity of 25.23% and a net margin of 23.85%. The firm's quarterly revenue was up 63.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $4.73 earnings per share. On average, equities analysts predict that Monolithic Power Systems, Inc. will post 23.72 earnings per share for the current fiscal year.

Monolithic Power Systems Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were given a dividend of $2.00 per share. The ex-dividend date was Wednesday, September 30th. This represents a $8.00 annualized dividend and a dividend yield of 0.6%. Monolithic Power Systems's dividend payout ratio (DPR) is 44.17%.

Insider Activity at Monolithic Power Systems

In other news, Director Kuo Wei Chang sold 50 shares of the company's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $1,281.57, for a total value of $64,078.50. Following the completion of the sale, the director owned 515 shares in the company, valued at $660,008.55. This represents a 8.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 3.60% of the company's stock.

Institutional Investors Weigh In On Monolithic Power Systems

Institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. purchased a new stake in shares of Monolithic Power Systems during the 2nd quarter valued at approximately $7,727,289,000. State Street Corp raised its holdings in Monolithic Power Systems by 4.3% during the 2nd quarter. State Street Corp now owns 2,282,186 shares of the semiconductor company's stock valued at $3,159,219,000 after acquiring an additional 93,732 shares during the period. Van ECK Associates Corp lifted its position in shares of Monolithic Power Systems by 42.3% during the second quarter. Van ECK Associates Corp now owns 746,237 shares of the semiconductor company's stock worth $1,031,568,000 after acquiring an additional 221,666 shares in the last quarter. Bank of America Corp DE purchased a new stake in shares of Monolithic Power Systems during the second quarter worth $741,271,000. Finally, Royal Bank of Canada boosted its holdings in shares of Monolithic Power Systems by 168.1% in the first quarter. Royal Bank of Canada now owns 473,368 shares of the semiconductor company's stock worth $517,557,000 after acquiring an additional 296,788 shares during the period. 93.46% of the stock is owned by institutional investors and hedge funds.

About Monolithic Power Systems

Monolithic Power Systems, Inc (MPS) designs, develops and markets semiconductor-based power management solutions. Its products include power management integrated circuits, DC-to-DC converters, power modules, battery chargers, LED drivers and motor drivers, which help control and convert electrical power in electronic systems.

The company's products serve a range of markets, including computing and data storage, automotive, communications, consumer electronics and industrial applications.

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