Monolithic Power Systems (NASDAQ:MPWR) Shares Gap Up – Time to Buy?

Shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR) gapped up prior to trading on Tuesday . The stock had previously closed at $647.31, but opened at $665.00. Monolithic Power Systems shares last traded at $668.82, with a volume of 490,895 shares traded.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. Needham & Company LLC reaffirmed a “buy” rating and issued a $950.00 target price on shares of Monolithic Power Systems in a research report on Tuesday. KeyCorp upped their price target on shares of Monolithic Power Systems from $975.00 to $1,075.00 and gave the company an “overweight” rating in a research report on Friday, August 2nd. Stifel Nicolaus raised their price objective on shares of Monolithic Power Systems from $1,000.00 to $1,100.00 and gave the stock a “buy” rating in a report on Friday, September 27th. Raymond James raised their target price on shares of Monolithic Power Systems from $770.00 to $925.00 and gave the stock an “outperform” rating in a report on Friday, August 2nd. Finally, Truist Financial restated a “buy” rating and set a $994.00 target price (up previously from $918.00) on shares of Monolithic Power Systems in a research note on Wednesday, October 2nd. Two equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $916.73.

Monolithic Power Systems Stock Performance

The firm has a market cap of $31.50 billion, a price-to-earnings ratio of 72.98, a price-to-earnings-growth ratio of 3.62 and a beta of 1.15. The stock’s 50 day simple moving average is $881.04 and its 200-day simple moving average is $830.41.

Monolithic Power Systems (NASDAQ:MPWR) last released its quarterly earnings data on Wednesday, October 30th. The semiconductor company reported $2.99 earnings per share for the quarter, missing analysts’ consensus estimates of $3.04 by ($0.05). The business had revenue of $620.12 million during the quarter, compared to analyst estimates of $600.10 million. Monolithic Power Systems had a return on equity of 20.44% and a net margin of 21.29%. On average, analysts expect that Monolithic Power Systems, Inc. will post 10.46 EPS for the current fiscal year.

Monolithic Power Systems Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, October 15th. Investors of record on Monday, September 30th were given a dividend of $1.25 per share. The ex-dividend date of this dividend was Monday, September 30th. This represents a $5.00 annualized dividend and a yield of 0.77%. Monolithic Power Systems’s dividend payout ratio is presently 56.37%.

Insider Activity

In related news, EVP Deming Xiao sold 10,000 shares of the business’s stock in a transaction dated Thursday, August 22nd. The shares were sold at an average price of $950.00, for a total transaction of $9,500,000.00. Following the transaction, the executive vice president now directly owns 29,714 shares in the company, valued at approximately $28,228,300. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In other Monolithic Power Systems news, EVP Deming Xiao sold 10,000 shares of the business’s stock in a transaction that occurred on Thursday, August 22nd. The shares were sold at an average price of $950.00, for a total transaction of $9,500,000.00. Following the completion of the transaction, the executive vice president now owns 29,714 shares in the company, valued at $28,228,300. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Maurice Sciammas sold 11,000 shares of the company’s stock in a transaction on Monday, October 7th. The shares were sold at an average price of $929.59, for a total transaction of $10,225,490.00. Following the completion of the transaction, the executive vice president now owns 103,829 shares of the company’s stock, valued at approximately $96,518,400.11. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 37,759 shares of company stock worth $34,985,340 over the last 90 days. 3.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the business. Cerity Partners LLC raised its stake in shares of Monolithic Power Systems by 47.9% during the third quarter. Cerity Partners LLC now owns 4,551 shares of the semiconductor company’s stock valued at $4,207,000 after purchasing an additional 1,474 shares during the period. Covenant Asset Management LLC grew its position in shares of Monolithic Power Systems by 181.1% during the third quarter. Covenant Asset Management LLC now owns 742 shares of the semiconductor company’s stock worth $686,000 after buying an additional 478 shares in the last quarter. Raymond James Trust N.A. grew its position in shares of Monolithic Power Systems by 10.5% during the third quarter. Raymond James Trust N.A. now owns 1,792 shares of the semiconductor company’s stock worth $1,657,000 after buying an additional 171 shares in the last quarter. Charles Schwab Investment Management Inc. grew its position in shares of Monolithic Power Systems by 1.8% during the third quarter. Charles Schwab Investment Management Inc. now owns 314,264 shares of the semiconductor company’s stock worth $290,537,000 after buying an additional 5,645 shares in the last quarter. Finally, Pacer Advisors Inc. grew its position in shares of Monolithic Power Systems by 8.4% during the third quarter. Pacer Advisors Inc. now owns 8,533 shares of the semiconductor company’s stock worth $7,889,000 after buying an additional 663 shares in the last quarter. Hedge funds and other institutional investors own 93.46% of the company’s stock.

About Monolithic Power Systems

Monolithic Power Systems, Inc engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the storage and computing, automotive, enterprise data, consumer, communications, and industrial markets. The company provides direct current (DC) to DC integrated circuits (ICs) that are used to convert and control voltages of various electronic systems, such as cloud-based CPU servers, server artificial intelligence applications, storage applications, commercial notebooks, digital cockpit, power sources, home appliances, 4G and 5G infrastructure, and satellite communications applications.