Monolithic Power Systems (NASDAQ:MPWR) Trading 6.7% Higher – Here’s Why

Monolithic Power Systems, Inc. (NASDAQ:MPWR) shares shot up 6.7% during mid-day trading on Wednesday . The company traded as high as $678.40 and last traded at $681.20. 119,665 shares changed hands during mid-day trading, a decline of 82% from the average session volume of 678,242 shares. The stock had previously closed at $638.49.

Wall Street Analysts Forecast Growth

MPWR has been the topic of a number of recent analyst reports. Citigroup began coverage on Monolithic Power Systems in a report on Wednesday, December 11th. They set a “buy” rating and a $700.00 target price on the stock. TD Cowen decreased their price objective on shares of Monolithic Power Systems from $1,100.00 to $975.00 and set a “buy” rating on the stock in a report on Thursday, October 31st. Loop Capital raised shares of Monolithic Power Systems from a “hold” rating to a “buy” rating and set a $660.00 price objective on the stock in a research report on Monday, November 18th. Rosenblatt Securities downgraded shares of Monolithic Power Systems from a “strong-buy” rating to a “hold” rating in a report on Thursday, October 31st. Finally, Truist Financial reissued a “buy” rating and issued a $994.00 price target (up from $918.00) on shares of Monolithic Power Systems in a report on Wednesday, October 2nd. Two research analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $828.67.

Monolithic Power Systems Price Performance

The stock has a 50-day moving average of $600.27 and a 200 day moving average of $770.84. The company has a market cap of $34.09 billion, a P/E ratio of 78.78, a PEG ratio of 2.64 and a beta of 1.03.

Monolithic Power Systems (NASDAQ:MPWR) last issued its quarterly earnings results 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 firm had revenue of $620.12 million for the quarter, compared to the consensus estimate of $600.10 million. Monolithic Power Systems had a return on equity of 20.44% and a net margin of 21.29%. Sell-side analysts predict that Monolithic Power Systems, Inc. will post 10.46 EPS for the current year.

Monolithic Power Systems Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, January 15th. Stockholders of record on Tuesday, December 31st were paid a $1.25 dividend. The ex-dividend date of this dividend was Tuesday, December 31st. This represents a $5.00 annualized dividend and a dividend yield of 0.72%. Monolithic Power Systems’s payout ratio is 56.37%.

Insider Buying and Selling

In related news, CFO Theodore Blegen sold 734 shares of the firm’s stock in a transaction on Friday, November 8th. The stock was sold at an average price of $765.15, for a total transaction of $561,620.10. Following the sale, the chief financial officer now owns 55,944 shares of the company’s stock, valued at $42,805,551.60. This trade represents a 1.30 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Deming Xiao sold 866 shares of Monolithic Power Systems stock in a transaction dated Friday, November 8th. The shares were sold at an average price of $765.14, for a total value of $662,611.24. Following the sale, the executive vice president now directly owns 162,239 shares in the company, valued at $124,135,548.46. The trade was a 0.53 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 6,600 shares of company stock worth $4,656,631 in the last ninety days. 3.70% of the stock is owned by insiders.

Institutional Trading of Monolithic Power Systems

A number of large investors have recently bought and sold shares of MPWR. NBC Securities Inc. boosted its holdings in Monolithic Power Systems by 433.3% in the third quarter. NBC Securities Inc. now owns 32 shares of the semiconductor company’s stock worth $29,000 after acquiring an additional 26 shares in the last quarter. Wolff Wiese Magana LLC grew its stake in shares of Monolithic Power Systems by 3,400.0% in the 3rd quarter. Wolff Wiese Magana LLC now owns 35 shares of the semiconductor company’s stock worth $32,000 after acquiring an additional 34 shares in the last quarter. Ashton Thomas Securities LLC purchased a new stake in shares of Monolithic Power Systems during the third quarter valued at approximately $36,000. Rakuten Securities Inc. lifted its holdings in Monolithic Power Systems by 410.0% during the third quarter. Rakuten Securities Inc. now owns 51 shares of the semiconductor company’s stock worth $47,000 after acquiring an additional 41 shares during the period. Finally, Capital Performance Advisors LLP purchased a new position in Monolithic Power Systems in the third quarter worth $65,000. 93.46% of the stock is currently owned by institutional investors and hedge funds.

Monolithic Power Systems Company Profile

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.