Monolithic Power Systems (NASDAQ:MPWR) Shares Gap Up – Still a Buy?

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 changing hands.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Loop Capital began coverage on Monolithic Power Systems in a report on Monday. They issued a “hold” rating and a $660.00 target price for the company. Raymond James increased their target price on Monolithic Power Systems from $770.00 to $925.00 and gave the company an “outperform” rating in a research note on Friday, August 2nd. TD Cowen cut their target price on Monolithic Power Systems from $1,100.00 to $975.00 and set a “buy” rating on the stock in a research note on Thursday, October 31st. Oppenheimer reissued an “outperform” rating and set a $900.00 target price on shares of Monolithic Power Systems in a report on Monday. Finally, Stifel Nicolaus upped their target price on Monolithic Power Systems from $1,000.00 to $1,100.00 and gave the company a “buy” rating in a research report on Friday, September 27th. Two analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $916.73.

Monolithic Power Systems Price Performance

The stock has a fifty day moving average of $881.04 and a 200 day moving average of $830.41. The firm has a market capitalization of $31.50 billion, a P/E ratio of 72.98, a price-to-earnings-growth ratio of 3.62 and a beta of 1.15.

Monolithic Power Systems (NASDAQ:MPWR) last announced its quarterly earnings results on Wednesday, October 30th. The semiconductor company reported $2.99 earnings per share for the quarter, missing the consensus estimate of $3.04 by ($0.05). The company had revenue of $620.12 million during the quarter, compared to analysts’ expectations of $600.10 million. Monolithic Power Systems had a net margin of 21.29% and a return on equity of 20.44%. Equities analysts forecast 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. Shareholders of record on Monday, September 30th were paid a dividend of $1.25 per share. This represents a $5.00 annualized dividend and a yield of 0.77%. The ex-dividend date of this dividend was Monday, September 30th. Monolithic Power Systems’s dividend payout ratio (DPR) is currently 56.37%.

Insiders Place Their Bets

In related news, EVP Deming Xiao sold 9,259 shares of the business’s stock in a transaction dated Tuesday, August 27th. The stock was sold at an average price of $950.00, for a total transaction of $8,796,050.00. Following the transaction, the executive vice president now owns 20,455 shares in the company, valued at $19,432,250. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In other news, CFO Theodore Blegen sold 2,500 shares of the firm’s stock in a transaction dated Tuesday, September 3rd. The stock was sold at an average price of $904.20, for a total transaction of $2,260,500.00. Following the completion of the transaction, the chief financial officer now owns 61,678 shares in the company, valued at $55,769,247.60. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Deming Xiao sold 9,259 shares of the firm’s stock in a transaction dated Tuesday, August 27th. The stock was sold at an average price of $950.00, for a total transaction of $8,796,050.00. Following the completion of the sale, the executive vice president now directly owns 20,455 shares of the company’s stock, valued at approximately $19,432,250. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 37,759 shares of company stock valued at $34,985,340 over the last 90 days. Insiders own 3.70% of the company’s stock.

Institutional Investors Weigh In On Monolithic Power Systems

Several institutional investors and hedge funds have recently made changes to their positions in MPWR. Family Firm Inc. purchased a new position in Monolithic Power Systems in the 2nd quarter valued at about $25,000. NBC Securities Inc. boosted its position in Monolithic Power Systems by 433.3% in the 3rd quarter. NBC Securities Inc. now owns 32 shares of the semiconductor company’s stock valued at $29,000 after buying an additional 26 shares during the period. Wolff Wiese Magana LLC boosted its position in 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 valued at $32,000 after buying an additional 34 shares during the period. Atwood & Palmer Inc. purchased a new stake in shares of Monolithic Power Systems during the 2nd quarter worth $33,000. Finally, Crewe Advisors LLC lifted its position in shares of Monolithic Power Systems by 126.3% during the 2nd quarter. Crewe Advisors LLC now owns 43 shares of the semiconductor company’s stock worth $35,000 after purchasing an additional 24 shares during the last quarter. 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.