Monolithic Power Systems (NASDAQ:MPWR) Shares Gap Up After Better-Than-Expected Earnings

Monolithic Power Systems, Inc. (NASDAQ:MPWR)’s stock price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $1,155.99, but opened at $1,250.00. Monolithic Power Systems shares last traded at $1,222.2030, with a volume of 169,052 shares.

The semiconductor company reported $4.79 earnings per share for the quarter, beating analysts’ consensus estimates of $4.74 by $0.05. Monolithic Power Systems had a return on equity of 18.37% and a net margin of 71.22%.The business had revenue of $751.16 million during the quarter, compared to the consensus estimate of $741.69 million. During the same period in the previous year, the business earned $4.09 EPS. The business’s quarterly revenue was up 20.8% on a year-over-year basis.

Monolithic Power Systems Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be paid a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Tuesday, March 31st. This is an increase from Monolithic Power Systems’s previous quarterly dividend of $1.56. Monolithic Power Systems’s dividend payout ratio is 15.93%.

Monolithic Power Systems News Summary

Here are the key news stories impacting Monolithic Power Systems this week:

• Positive Sentiment: Q4 results beat modestly — EPS $4.79 vs. consensus $4.74 and revenue $751.2M, with strong margins and year‑over‑year revenue growth; the release and call reinforced the company’s execution. Press release: Q4 results
• Positive Sentiment: Management raised Q1 revenue guidance to $770M–$790M (above street consensus ~ $739M), giving the market forward visibility and supporting upside to near‑term estimates. Guidance commentary
• Positive Sentiment: Board approved a meaningful quarterly dividend increase to $2.00 (≈28% bump), signaling confidence in cash generation and returning capital to shareholders. Dividend announcement
• Positive Sentiment: Needham lifted its price target to $1,300 and kept a Buy rating, reinforcing analyst optimism and providing an upward anchor for investor expectations. Needham price target raise
• Neutral Sentiment: Company announced a CFO transition (Bernie Blegen to retire after the 2025 Form 10‑K) but he will remain through transition — governance change that bears watching but not an immediate operational concern. CFO transition
• Neutral Sentiment: Market commentary and transcripts (SeekingAlpha, Zacks) are circulating — useful for detail and modeling but contain no single surprise beyond the company release. Earnings coverage (Zacks)
• Negative Sentiment: Rosenblatt raised its target to $1,000 but kept a Neutral rating — that target sits below the current price and can be interpreted as a near‑term bearish data point for sentiment. Rosenblatt note (Benzinga)
• Negative Sentiment: CFO Theodore Blegen sold 3,000 shares (~$3.4M) in early February; repeated insider sales can prompt short‑term selling pressure or investor questions about timing of disposals. SEC filing: insider sale

Analysts Set New Price Targets

A number of research analysts recently issued reports on MPWR shares. TD Cowen reaffirmed a “buy” rating on shares of Monolithic Power Systems in a report on Friday, October 31st. Truist Financial lifted their price target on Monolithic Power Systems from $1,163.00 to $1,375.00 and gave the stock a “buy” rating in a research report on Friday, December 19th. Weiss Ratings restated a “buy (b-)” rating on shares of Monolithic Power Systems in a research note on Friday, December 26th. Rosenblatt Securities increased their price target on shares of Monolithic Power Systems from $950.00 to $1,000.00 and gave the company a “neutral” rating in a report on Friday. Finally, Stifel Nicolaus upped their price target on Monolithic Power Systems from $1,250.00 to $1,300.00 and gave the company a “buy” rating in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Buy” and an average target price of $1,195.83.

Insiders Place Their Bets

In related news, EVP Maurice Sciammas sold 27,966 shares of the company’s stock in a transaction dated Wednesday, November 19th. The shares were sold at an average price of $881.66, for a total value of $24,656,503.56. Following the transaction, the executive vice president owned 148,306 shares in the company, valued at approximately $130,755,467.96. This represents a 15.87% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Kuo Wei Herbert Chang sold 100 shares of the firm’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $896.97, for a total transaction of $89,697.00. Following the sale, the director owned 426 shares of the company’s stock, valued at $382,109.22. This trade represents a 19.01% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 69,776 shares of company stock valued at $63,489,045 in the last quarter. Company insiders own 3.40% of the company’s stock.

Hedge Funds Weigh In On Monolithic Power Systems

Hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. raised its stake in Monolithic Power Systems by 2.3% during the third quarter. Vanguard Group Inc. now owns 6,074,033 shares of the semiconductor company’s stock worth $5,591,998,000 after buying an additional 134,087 shares during the last quarter. State Street Corp increased its holdings in Monolithic Power Systems by 0.7% in the third quarter. State Street Corp now owns 2,134,704 shares of the semiconductor company’s stock worth $1,968,578,000 after purchasing an additional 14,670 shares in the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of Monolithic Power Systems by 0.8% during the 3rd quarter. JPMorgan Chase & Co. now owns 863,228 shares of the semiconductor company’s stock worth $794,723,000 after buying an additional 6,503 shares in the last quarter. Bank of America Corp DE grew its position in shares of Monolithic Power Systems by 18.0% during the 2nd quarter. Bank of America Corp DE now owns 692,747 shares of the semiconductor company’s stock worth $506,661,000 after buying an additional 105,721 shares during the period. Finally, Norges Bank acquired a new position in shares of Monolithic Power Systems during the 2nd quarter valued at $438,014,000. 93.46% of the stock is owned by institutional investors.

Monolithic Power Systems Price Performance

The stock has a market capitalization of $56.87 billion, a price-to-earnings ratio of 30.62, a PEG ratio of 3.19 and a beta of 1.45. The business’s fifty day moving average price is $998.38 and its 200-day moving average price is $929.21.

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.