Monolithic Power Systems (NASDAQ:MPWR) Shares Gap Up on Strong Earnings

Monolithic Power Systems, Inc. (NASDAQ:MPWR) shares gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $1,155.99, but opened at $1,250.00. Monolithic Power Systems shares last traded at $1,222.2030, with a volume of 169,052 shares trading hands.

The semiconductor company reported $4.79 EPS for the quarter, beating the consensus estimate of $4.74 by $0.05. The company had revenue of $751.16 million for the quarter, compared to analyst estimates of $741.69 million. Monolithic Power Systems had a net margin of 22.07% and a return on equity of 18.50%. The firm’s revenue was up 20.8% on a year-over-year basis. During the same period in the prior year, the company earned $4.09 earnings per share.

Monolithic Power Systems Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be issued a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a yield of 0.7%. This is a positive change from Monolithic Power Systems’s previous quarterly dividend of $1.56. The ex-dividend date of this dividend is Tuesday, March 31st. Monolithic Power Systems’s dividend payout ratio is 15.93%.

More Monolithic Power Systems News

Here are the key news stories impacting Monolithic Power Systems this week:

• Positive Sentiment: Q4 results topped estimates with record revenues across automotive, computing, communications and industrial end markets (revenue growth ~20.8% and EPS beat). This is the primary bullish catalyst. Read More.
• Positive Sentiment: Management raised FY/Q1 revenue guidance ($770M–$790M for Q1 vs. consensus ~$739M), signaling continued demand and giving analysts room to lift targets. Read More.
• Positive Sentiment: Board boosted the quarterly cash dividend to $2.00 (≈28% increase), a shareholder-friendly move that supports demand from income-oriented holders. Read More.
• Positive Sentiment: Analysts continue to raise targets — Needham to $1,300 (buy) and Wells Fargo to $1,350 (overweight) — reinforcing bullish sentiment and adding technical/flow support. Read More.
• Neutral Sentiment: Investor events and transcripts (earnings call and webinar) will be monitored for margin detail, backlog commentary and end-market strength — these will influence the next trading days but are informational until clarified. Read More.
• Neutral Sentiment: Some research pieces and previews highlight secular tailwinds (AI, data centers, automotive) that support the long-term case but depend on MPS execution vs. peers. Read More.
• Negative Sentiment: Rosenblatt’s newer target is well below the market (~$1,000 with a neutral rating), showing divergent analyst views and potential downside risk if momentum fades. Read More.
• Negative Sentiment: CFO transition announced (retirement after the 10-K) and recent insider sales by the CFO (3,000 shares) may raise short-term governance or liquidity concerns for some investors. Read More.

Analyst Ratings Changes

Several equities research analysts have commented on the company. TD Cowen restated a “buy” rating on shares of Monolithic Power Systems in a research report on Friday, October 31st. Needham & Company LLC raised their price target on shares of Monolithic Power Systems from $1,250.00 to $1,300.00 and gave the company a “buy” rating in a research report on Friday. Truist Financial upped their price objective on shares of Monolithic Power Systems from $1,375.00 to $1,396.00 and gave the stock a “buy” rating in a research report on Friday. Weiss Ratings reissued a “buy (b-)” rating on shares of Monolithic Power Systems in a research note on Friday, December 26th. Finally, Wells Fargo & Company lifted their price target on Monolithic Power Systems from $1,200.00 to $1,350.00 and gave the company an “overweight” rating in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus target price of $1,210.08.

Insider Activity

In other news, Director Kuo Wei Herbert Chang sold 100 shares of the firm’s stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $896.97, for a total transaction of $89,697.00. Following the completion of the sale, the director owned 426 shares in the company, valued at $382,109.22. This trade represents a 19.01% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Maurice Sciammas sold 27,966 shares of the stock in a transaction on Wednesday, November 19th. The stock was sold at an average price of $881.66, for a total value of $24,656,503.56. Following the transaction, the executive vice president owned 148,306 shares of the company’s stock, valued at approximately $130,755,467.96. This represents a 15.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 69,776 shares of company stock valued at $63,489,045 in the last 90 days. 3.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. SJS Investment Consulting Inc. lifted its holdings in shares of Monolithic Power Systems by 2,700.0% in the 3rd quarter. SJS Investment Consulting Inc. now owns 28 shares of the semiconductor company’s stock worth $26,000 after acquiring an additional 27 shares during the last quarter. True Wealth Design LLC raised its position in Monolithic Power Systems by 61.1% in the third quarter. True Wealth Design LLC now owns 29 shares of the semiconductor company’s stock valued at $26,000 after purchasing an additional 11 shares during the period. Salomon & Ludwin LLC acquired a new position in Monolithic Power Systems during the third quarter worth $33,000. Thurston Springer Miller Herd & Titak Inc. purchased a new position in shares of Monolithic Power Systems during the fourth quarter worth $34,000. Finally, IFP Advisors Inc boosted its position in shares of Monolithic Power Systems by 171.4% during the third quarter. IFP Advisors Inc now owns 38 shares of the semiconductor company’s stock worth $35,000 after buying an additional 24 shares during the period. Institutional investors and hedge funds own 93.46% of the company’s stock.

Monolithic Power Systems Price Performance

The firm has a market capitalization of $58.92 billion, a price-to-earnings ratio of 96.53, a PEG ratio of 3.45 and a beta of 1.45. The stock has a 50 day moving average price of $1,004.45 and a two-hundred day moving average price of $934.21.

About Monolithic Power Systems

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.