Monolithic Power Systems (NASDAQ:MPWR) Trading Up 6.3% – Should You Buy?

Monolithic Power Systems, Inc. (NASDAQ:MPWR)’s share price traded up 6.3% on Tuesday . The company traded as high as $1,350.00 and last traded at $1,357.6750. Approximately 358,509 shares changed hands during trading, a decline of 51% from the average daily volume of 729,104 shares. The stock had previously closed at $1,277.68.

Analyst Upgrades and Downgrades

MPWR has been the topic of several research reports. Arete Research set a $2,013.00 target price on shares of Monolithic Power Systems and gave the stock a “buy” rating in a report on Thursday, August 20th. KeyCorp boosted their target price on shares of Monolithic Power Systems from $2,000.00 to $2,100.00 and gave the company an “overweight” rating in a research note on Friday, July 31st. Rosenblatt Securities reissued a “neutral” rating and set a $1,575.00 price target on shares of Monolithic Power Systems in a report on Friday, July 31st. Weiss Ratings downgraded Monolithic Power Systems from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, August 31st. Finally, Wells Fargo & Company lifted their price objective on Monolithic Power Systems from $1,700.00 to $1,800.00 and gave the stock an “overweight” rating in a report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $1,731.42.

Monolithic Power Systems Trading Up 7.4%

The stock has a market cap of $67.45 billion, a P/E ratio of 83.79 and a beta of 1.66. The company’s 50 day moving average price is $1,300.27 and its two-hundred day moving average price is $1,355.20.

Monolithic Power Systems (NASDAQ:MPWR) last announced its earnings results on Thursday, July 30th. The semiconductor company reported $6.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.87 by $0.63. Monolithic Power Systems had a net margin of 24.41% and a return on equity of 22.31%. The company had revenue of $980.64 million during the quarter, compared to analyst estimates of $903.30 million. During the same period in the previous year, the business posted $4.21 earnings per share. The firm’s quarterly revenue was up 47.6% compared to the same quarter last year. On average, sell-side analysts anticipate that Monolithic Power Systems, Inc. will post 23.35 earnings per share for the current year.

Monolithic Power Systems Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th will be paid a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Wednesday, September 30th. Monolithic Power Systems’s dividend payout ratio (DPR) is currently 49.05%.

Insiders Place Their Bets

In related news, EVP Maurice Sciammas sold 30 shares of Monolithic Power Systems stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $1,343.94, for a total transaction of $40,318.20. Following the transaction, the executive vice president directly owned 1,119 shares in the company, valued at approximately $1,503,868.86. The trade was a 2.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kuo Wei Chang sold 50 shares of the business’s stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $1,281.57, for a total value of $64,078.50. Following the sale, the director directly owned 515 shares of the company’s stock, valued at $660,008.55. This represents a 8.85% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 160 shares of company stock valued at $215,945. Insiders own 3.60% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Royal Fund Management LLC grew its holdings in Monolithic Power Systems by 2.7% during the 1st quarter. Royal Fund Management LLC now owns 264 shares of the semiconductor company’s stock valued at $289,000 after purchasing an additional 7 shares in the last quarter. Covestor Ltd boosted its position in Monolithic Power Systems by 29.0% in the 4th quarter. Covestor Ltd now owns 40 shares of the semiconductor company’s stock valued at $36,000 after buying an additional 9 shares during the last quarter. Bell Investment Advisors Inc boosted its position in Monolithic Power Systems by 23.7% in the 1st quarter. Bell Investment Advisors Inc now owns 47 shares of the semiconductor company’s stock valued at $51,000 after buying an additional 9 shares during the last quarter. CENTRAL TRUST Co grew its stake in shares of Monolithic Power Systems by 1.4% during the first quarter. CENTRAL TRUST Co now owns 701 shares of the semiconductor company’s stock valued at $766,000 after acquiring an additional 10 shares in the last quarter. Finally, KCM Investment Advisors LLC grew its stake in shares of Monolithic Power Systems by 2.2% during the first quarter. KCM Investment Advisors LLC now owns 467 shares of the semiconductor company’s stock valued at $511,000 after acquiring an additional 10 shares in the last quarter. 93.46% of the stock is owned by hedge funds and other institutional investors.

About Monolithic Power Systems

Monolithic Power Systems, Inc (NASDAQ:MPWR) designs, develops and markets high-performance semiconductor solutions, with a focus on power management. Its products help regulate, convert and control electrical power in electronic systems, enabling more efficient operation in applications ranging from computing and communications equipment to automotive, industrial and consumer devices.

The company’s portfolio includes DC-to-DC converters, power modules, battery chargers, power-management integrated circuits, motor drivers, LED drivers, voltage regulators and other analog semiconductor products.