Monolithic Power Systems (NASDAQ:MPWR) Trading Up 8.5% – Should You Buy?

Monolithic Power Systems, Inc. (NASDAQ:MPWR)’s share price traded up 8.5% on Thursday . The company traded as high as $1,552.00 and last traded at $1,571.07. Approximately 220,945 shares were traded during mid-day trading, a decline of 65% from the average session volume of 635,158 shares. The stock had previously closed at $1,448.21.

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. Oppenheimer set a $1,700.00 price objective on shares of Monolithic Power Systems in a research report on Friday, May 1st. Zacks Research lowered Monolithic Power Systems from a “strong-buy” rating to a “hold” rating in a research report on Friday, April 10th. Truist Financial set a $1,805.00 target price on Monolithic Power Systems in a research note on Friday, May 1st. Weiss Ratings upgraded Monolithic Power Systems from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, June 12th. Finally, Rosenblatt Securities upped their price target on Monolithic Power Systems from $1,000.00 to $1,575.00 and gave the company a “neutral” rating in a research note on Friday, May 1st. Twelve investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $1,599.17.

Monolithic Power Systems Stock Performance

The stock has a 50 day moving average price of $1,546.37 and a two-hundred day moving average price of $1,230.09. The company has a market cap of $76.82 billion, a price-to-earnings ratio of 112.74, a P/E/G ratio of 2.80 and a beta of 1.69.

Monolithic Power Systems (NASDAQ:MPWR) last announced its quarterly earnings data on Thursday, April 30th. The semiconductor company reported $5.10 EPS for the quarter, topping analysts’ consensus estimates of $4.90 by $0.20. The business had revenue of $804.19 million during the quarter, compared to analysts’ expectations of $781.93 million. Monolithic Power Systems had a return on equity of 19.58% and a net margin of 22.84%.The firm’s quarterly revenue was up 26.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $4.04 earnings per share. On average, equities analysts forecast that Monolithic Power Systems, Inc. will post 20.13 EPS for the current fiscal year.

Monolithic Power Systems Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be issued a dividend of $2.00 per share. The ex-dividend date is Tuesday, June 30th. This represents a $8.00 dividend on an annualized basis and a yield of 0.5%. Monolithic Power Systems’s dividend payout ratio (DPR) is 57.68%.

Insider Activity

In other news, EVP Saria Tseng sold 25,674 shares of the stock in a transaction on Monday, March 30th. The shares were sold at an average price of $1,010.50, for a total transaction of $25,943,577.00. Following the completion of the sale, the executive vice president owned 174,982 shares of the company’s stock, valued at $176,819,311. This represents a 12.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Eugen J. Elmiger sold 12,000 shares of the company’s stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $1,584.96, for a total transaction of $19,019,520.00. Following the completion of the transaction, the director directly owned 5,402 shares of the company’s stock, valued at approximately $8,561,953.92. The trade was a 68.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 113,043 shares of company stock valued at $160,843,106. 3.60% of the stock is currently owned by company insiders.

Institutional Trading of Monolithic Power Systems

Hedge funds and other institutional investors have recently modified their holdings of the company. State Street Corp grew its holdings in shares of Monolithic Power Systems by 2.1% during the fourth quarter. State Street Corp now owns 2,180,419 shares of the semiconductor company’s stock worth $1,979,610,000 after buying an additional 45,715 shares in the last quarter. Corient Private Wealth LLC lifted its stake in Monolithic Power Systems by 3,719.6% in the 4th quarter. Corient Private Wealth LLC now owns 2,047,173 shares of the semiconductor company’s stock valued at $1,855,476,000 after acquiring an additional 1,993,576 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in Monolithic Power Systems by 7.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,691,394 shares of the semiconductor company’s stock valued at $1,533,013,000 after acquiring an additional 117,596 shares in the last quarter. Invesco Ltd. boosted its position in Monolithic Power Systems by 25.9% during the 4th quarter. Invesco Ltd. now owns 1,434,689 shares of the semiconductor company’s stock worth $1,300,345,000 after acquiring an additional 295,556 shares during the last quarter. Finally, Geode Capital Management LLC boosted its position in Monolithic Power Systems by 3.3% during the 4th quarter. Geode Capital Management LLC now owns 1,382,280 shares of the semiconductor company’s stock worth $1,248,436,000 after acquiring an additional 44,583 shares during the last quarter. Institutional investors and hedge funds own 93.46% of the company’s stock.

Monolithic Power Systems Company Profile

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.