Monolithic Power Systems (NASDAQ:MPWR) Upgraded to “Buy” at Rosenblatt Securities

Monolithic Power Systems (NASDAQ:MPWR) was upgraded by stock analysts at Rosenblatt Securities from a “neutral” rating to a “buy” rating in a research note issued to investors on Friday, Marketbeat reports. The firm currently has a $1,700.00 target price on the semiconductor company’s stock. Rosenblatt Securities‘s target price would indicate a potential upside of 41.81% from the stock’s previous close.

Other equities analysts have also recently issued research reports about the stock. Needham & Company LLC increased their price objective on shares of Monolithic Power Systems from $1,750.00 to $2,000.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. TD Cowen decreased their price target on Monolithic Power Systems from $1,850.00 to $1,700.00 and set a “buy” rating on the stock in a research note on Monday, October 19th. Raymond James Financial restated an “outperform” rating on shares of Monolithic Power Systems in a research report on Wednesday, August 12th. Weiss Ratings raised Monolithic Power Systems from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, October 8th. Finally, Wells Fargo & Company cut their price objective on Monolithic Power Systems from $1,800.00 to $1,550.00 and set an “overweight” rating on the stock in a report on Tuesday, October 20th. Fourteen investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, Monolithic Power Systems presently has a consensus rating of “Moderate Buy” and a consensus target price of $1,701.57.

Monolithic Power Systems Price Performance

NASDAQ MPWR opened at $1,198.81 on Friday. The stock has a market capitalization of $58.91 billion, a P/E ratio of 73.50 and a beta of 1.68. The firm’s 50-day moving average is $1,276.68 and its two-hundred day moving average is $1,309.09. Monolithic Power Systems has a 12 month low of $833.18 and a 12 month high of $1,714.09.

Monolithic Power Systems (NASDAQ:MPWR) last released its quarterly earnings results on Thursday, October 29th. The semiconductor company reported $8.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $7.79 by $0.40. The business had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.16 billion. Monolithic Power Systems had a net margin of 24.41% and a return on equity of 22.31%. The business’s revenue was up 63.1% on a year-over-year basis. During the same period in the previous year, the firm earned $4.73 EPS. As a group, analysts anticipate that Monolithic Power Systems will post 23.95 EPS for the current year.

Insider Activity at Monolithic Power Systems

In other Monolithic Power Systems news, EVP Maurice Sciammas sold 30 shares of the business’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $1,343.94, for a total value of $40,318.20. Following the completion of the transaction, the executive vice president owned 1,119 shares in the company, valued at $1,503,868.86. The trade was a 2.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at 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 company’s stock in a transaction on Monday, August 24th. The stock was 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 in the company, valued at $660,008.55. This represents a 8.85% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 130 shares of company stock worth $175,397. 3.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. purchased a new position in shares of Monolithic Power Systems in the 2nd quarter valued at about $7,727,289,000. State Street Corp increased its stake in shares of Monolithic Power Systems by 4.3% during the second quarter. State Street Corp now owns 2,282,186 shares of the semiconductor company’s stock worth $3,159,219,000 after buying an additional 93,732 shares during the period. Van ECK Associates Corp increased its stake in shares of Monolithic Power Systems by 42.3% during the second quarter. Van ECK Associates Corp now owns 746,237 shares of the semiconductor company’s stock worth $1,031,568,000 after buying an additional 221,666 shares during the period. Bank of America Corp DE purchased a new stake in shares of Monolithic Power Systems during the second quarter worth approximately $741,271,000. Finally, Royal Bank of Canada raised its holdings in Monolithic Power Systems by 168.1% in the first quarter. Royal Bank of Canada now owns 473,368 shares of the semiconductor company’s stock valued at $517,557,000 after acquiring an additional 296,788 shares in the last quarter. 93.46% of the stock is owned by institutional investors and hedge funds.

Key Monolithic Power Systems News

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

• Positive Sentiment: Third-quarter results exceeded expectations. Non-GAAP earnings were $8.19 per share versus the $7.79 consensus estimate, while revenue reached $1.20 billion compared with expectations of $1.16 billion. Revenue increased 63.1% from the prior year, and EPS rose from $4.73. Monolithic Power Systems earnings report
• Positive Sentiment: Operating trends appeared healthy. Coverage highlighted improving inventory levels, while the company’s net margin was 24.41%. The results reinforce demand for MPS’s power-management semiconductors, particularly given the company’s substantial year-over-year growth. Monolithic Power Systems Q3 inventory report
• Neutral Sentiment: Finance leadership changed immediately. Monolithic Power appointed Tony Balow as vice president and chief financial officer and Robert Dean as vice president and chief accounting officer, effective immediately. The appointments could provide continuity, but investors may seek more detail about the transition and its implications. MPS CFO and CAO appointments
• Negative Sentiment: Investor uncertainty increased after a law-firm investigation was announced. Rosen Law Firm said it was investigating potential breaches of fiduciary duties by MPWR’s directors and officers. The announcement does not establish wrongdoing, but it creates a governance overhang that may weigh on sentiment. Rosen Law Firm investigation announcement
• Negative Sentiment: Valuation leaves little room for disappointment. MPWR’s reported P/E ratio of 73.50 is elevated, and shares opened below both their 50-day and 200-day moving averages. Thus, despite the earnings beat, investors may be taking profits or demanding stronger forward commentary before bidding the stock higher.

About Monolithic Power Systems

Monolithic Power Systems, Inc (NASDAQ: MPWR) is a semiconductor company that designs, develops and markets high-performance power-management solutions. Its products help regulate, convert, distribute and control electrical power in electronic systems, supporting applications that require efficient and reliable power delivery.

The company’s portfolio includes integrated circuits, power modules, battery-management products, motor drivers, LED drivers and related analog and mixed-signal semiconductor solutions.