Monolithic Power Systems (NASDAQ:MPWR) Trading Up 8.5% – Still a Buy?

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

Wall Street Analysts Forecast Growth

Several analysts recently commented on the stock. Weiss Ratings upgraded shares of Monolithic Power Systems from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, June 12th. Raymond James Financial reiterated an “outperform” rating and issued a $1,800.00 price objective on shares of Monolithic Power Systems in a research note on Friday, May 1st. KeyCorp raised their price objective on shares of Monolithic Power Systems from $1,500.00 to $2,000.00 and gave the company an “overweight” rating in a research note on Friday, May 1st. Rosenblatt Securities raised their price objective on shares of 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. Finally, Oppenheimer set a $1,700.00 price objective on shares of Monolithic Power Systems in a research note on Friday, May 1st. Twelve research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $1,599.17.

Monolithic Power Systems Price Performance

The company has a market cap of $76.36 billion, a price-to-earnings ratio of 112.16, a PEG ratio of 2.68 and a beta of 1.69. The business’s 50-day simple moving average is $1,533.91 and its 200-day simple moving average is $1,223.25.

Monolithic Power Systems (NASDAQ:MPWR) last issued its quarterly earnings results 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 the consensus estimate of $781.93 million. Monolithic Power Systems had a net margin of 22.84% and a return on equity of 19.58%. The company’s quarterly revenue was up 26.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $4.04 earnings per share. As a group, sell-side analysts forecast that Monolithic Power Systems, Inc. will post 20.13 EPS for the current year.

Monolithic Power Systems Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders 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 dividend yield of 0.5%. Monolithic Power Systems’s payout ratio is 57.68%.

Insider Buying and Selling at Monolithic Power Systems

In other news, EVP Maurice Sciammas sold 30 shares of Monolithic Power Systems stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $1,533.95, for a total transaction of $46,018.50. Following the completion of the sale, the executive vice president directly owned 1,179 shares in the company, valued at $1,808,527.05. The trade was a 2.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eileen Wynne sold 335 shares of Monolithic Power Systems stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $1,582.68, for a total transaction of $530,197.80. Following the sale, the director owned 1,007 shares of the company’s stock, valued at approximately $1,593,758.76. This trade represents a 24.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 113,073 shares of company stock valued at $160,875,958. Corporate insiders own 3.60% of the company’s stock.

Institutional Investors Weigh In On Monolithic Power Systems

A number of hedge funds and other institutional investors have recently modified their holdings of MPWR. Corient Private Wealth LLC grew its holdings in shares of Monolithic Power Systems by 3,719.6% during the fourth quarter. Corient Private Wealth LLC now owns 2,047,173 shares of the semiconductor company’s stock worth $1,855,476,000 after buying an additional 1,993,576 shares in the last quarter. Norges Bank purchased a new stake in shares of Monolithic Power Systems during the fourth quarter worth about $658,656,000. Royal Bank of Canada grew its holdings in 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 valued at $517,557,000 after purchasing an additional 296,788 shares during the period. Invesco Ltd. grew its holdings in Monolithic Power Systems by 25.9% in the fourth quarter. Invesco Ltd. now owns 1,434,689 shares of the semiconductor company’s stock valued at $1,300,345,000 after purchasing an additional 295,556 shares during the period. Finally, SG Americas Securities LLC grew its holdings in Monolithic Power Systems by 77,483.1% in the fourth quarter. SG Americas Securities LLC now owns 262,231 shares of the semiconductor company’s stock valued at $237,676,000 after purchasing an additional 261,893 shares during the period. 93.46% of the stock is currently owned by hedge funds and other institutional investors.

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.