Monolithic Power Systems (NASDAQ:MPWR) Shares Up 6.3% - What's Next?

Key Points

• Monolithic Power Systems shares surged 6.3% to approximately $1,357.68, although trading volume was 51% below the average. The stock has a $67.45 billion market capitalization and trades at a price-to-earnings ratio of 83.79.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $1,731.42. Recent targets include $2,000 from Needham and $2,013 from Arete Research, though some firms downgraded the stock to “hold.”
• The company recently exceeded quarterly expectations, reporting $6.50 in EPS and $980.64 million in revenue, up 47.6% year over year. Monolithic Power also declared a $2.00 quarterly dividend, while insiders sold 160 shares worth approximately $215,945 during the latest quarter.

Monolithic Power Systems, Inc. (NASDAQ:MPWR - Get Free Report)'s stock price was up 6.3% during mid-day trading on Tuesday . The stock traded as high as $1,350.00 and last traded at $1,357.6750. 358,509 shares traded hands during mid-day trading, a decline of 51% from the average daily volume of 729,104 shares. The stock had previously closed at $1,277.68.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on MPWR shares. Arete Research set a $2,013.00 price target on Monolithic Power Systems and gave the company a "buy" rating in a research report on Thursday, August 20th. Wall Street Zen downgraded Monolithic Power Systems from a "buy" rating to a "hold" rating in a report on Saturday. Needham & Company LLC raised their price objective on Monolithic Power Systems from $1,750.00 to $2,000.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Zacks Research raised Monolithic Power Systems from a "hold" rating to a "strong-buy" rating in a research report on Thursday, June 18th. Finally, Weiss Ratings cut shares of Monolithic Power Systems from a "hold (c+)" rating to a "hold (c)" rating in a report on Monday, August 31st. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $1,731.42.

Monolithic Power Systems Stock Up 7.4%

The company's fifty day moving average price is $1,300.27 and its 200-day moving average price is $1,355.20. The stock has a market capitalization of $67.45 billion, a PE ratio of 83.79 and a beta of 1.66.

Monolithic Power Systems (NASDAQ:MPWR - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The semiconductor company reported $6.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.87 by $0.63. Monolithic Power Systems had a net margin of 24.41% and a return on equity of 22.31%. The company had revenue of $980.64 million for the quarter, compared to analysts' expectations of $903.30 million. During the same quarter in the previous year, the business posted $4.21 EPS. Monolithic Power Systems's revenue was up 47.6% compared to the same quarter last year. Equities research analysts anticipate that Monolithic Power Systems, Inc. will post 23.35 earnings per share for the current year.

Monolithic Power Systems Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th will be paid a $2.00 dividend. This represents a $8.00 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Wednesday, September 30th. Monolithic Power Systems's dividend payout ratio is currently 49.05%.

Insider Buying and Selling

In related news, EVP Maurice Sciammas sold 30 shares of the business's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $1,343.94, for a total value of $40,318.20. Following the completion of the transaction, the executive vice president directly owned 1,119 shares in the company, valued at $1,503,868.86. The trade was a 2.61% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kuo Wei Chang sold 50 shares of the company's stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $1,281.57, for a total value of $64,078.50. Following the completion of the transaction, the director directly owned 515 shares in the company, valued at $660,008.55. This trade represents a 8.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 160 shares of company stock worth $215,945. Corporate insiders own 3.60% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Transamerica Financial Advisors LLC purchased a new stake in shares of Monolithic Power Systems during the second quarter valued at $35,000. Danske Bank A S purchased a new position in Monolithic Power Systems in the 2nd quarter worth about $36,000. Continuum Advisory LLC purchased a new position in Monolithic Power Systems in the 2nd quarter worth about $43,000. NBH Bank bought a new position in Monolithic Power Systems during the 2nd quarter valued at about $54,000. Finally, Covestor Ltd lifted its stake in Monolithic Power Systems by 29.0% during the 4th quarter. Covestor Ltd now owns 40 shares of the semiconductor company's stock valued at $36,000 after acquiring an additional 9 shares during the period. Hedge funds and other institutional investors own 93.46% of the company's stock.

About Monolithic Power Systems

Monolithic Power Systems, Inc NASDAQ: MPWR designs, develops and markets high-performance semiconductor solutions, with a focus on power management. Its products help regulate, convert and control electrical power in electronic systems, enabling more efficient operation in applications ranging from computing and communications equipment to automotive, industrial and consumer devices.

The company's portfolio includes DC-to-DC converters, power modules, battery chargers, power-management integrated circuits, motor drivers, LED drivers, voltage regulators and other analog semiconductor products.

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