Monolithic Power Systems (NASDAQ:MPWR) Trading Down 7% – Here’s Why

Shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR) were down 7% during trading on Monday . The stock traded as low as $1,315.90 and last traded at $1,326.3080. Approximately 150,672 shares changed hands during trading, a decline of 80% from the average session volume of 739,024 shares. The stock had previously closed at $1,426.03.

Key Stories Impacting Monolithic Power Systems

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

• Positive Sentiment: An earnings-call recap pointed to a robust upswing, likely supported by continued demand for power-management semiconductors from artificial-intelligence and data-center customers. MPWR recently reported quarterly revenue growth of 47.6% and earnings well above analyst expectations. Monolithic Power Systems Earnings Call Signals Robust Upswing
• Positive Sentiment: One analyst upgraded MPWR to Buy, citing a potential reset in enterprise-data expectations. That view suggests the market may be underestimating a recovery or acceleration in enterprise demand. Monolithic Power Systems: Upgrading To Buy On Enterprise Data Reset
• Positive Sentiment: Several analysts raised their price targets to $1,800, $1,889 and $2,100, signaling that some Wall Street estimates remain well above the recent trading level. Price Target Raised to $1,889 Price Target Raised to $1,800 Price Target Raised to $2,100
• Neutral Sentiment: Technical momentum improved after MPWR moved above its 20-day moving average, although the stock remains below its 50-day average, making the signal less conclusive. MPWR Crossed Above the 20-Day Moving Average
• Neutral Sentiment: Rosenblatt reiterated its Neutral rating, highlighting continued disagreement among analysts over whether the company’s growth outlook justifies its premium valuation. Neutral Rating Reiterated at Rosenblatt Securities
• Negative Sentiment: A contrarian analysis argued that investors should sell despite MPWR’s strong quarter, likely reflecting concerns about its roughly 82-times earnings valuation, high expectations and limited room for further upside if growth slows. Monolithic Power Systems: Why I’m Selling The Best Quarter

Wall Street Analyst Weigh In

MPWR has been the topic of several recent research reports. Citigroup reaffirmed a “buy” rating on shares of Monolithic Power Systems in a report on Friday, May 1st. Zacks Research upgraded shares of Monolithic Power Systems from a “hold” rating to a “strong-buy” rating in a research report on Thursday, June 18th. Oppenheimer set a $1,700.00 price objective on Monolithic Power Systems in a research note on Friday, May 1st. Truist Financial lifted their price objective on Monolithic Power Systems from $1,805.00 to $1,889.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Finally, Weiss Ratings downgraded Monolithic Power Systems from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Monolithic Power Systems presently has an average rating of “Moderate Buy” and a consensus price target of $1,705.82.

Monolithic Power Systems Price Performance

The firm’s 50 day moving average is $1,429.11 and its 200 day moving average is $1,321.74. The company has a market capitalization of $65.59 billion, a PE ratio of 81.85 and a beta of 1.69.

Monolithic Power Systems (NASDAQ:MPWR) last announced its quarterly earnings results on Thursday, July 30th. The semiconductor company reported $6.50 earnings per share 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 business had revenue of $980.64 million during the quarter, compared to analysts’ expectations of $903.30 million. During the same quarter in the prior year, the company posted $4.21 EPS. The firm’s revenue for the quarter was up 47.6% compared to the same quarter last year. As a group, analysts predict that Monolithic Power Systems, Inc. will post 20.2 EPS for the current fiscal year.

Monolithic Power Systems Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were paid a $2.00 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $8.00 annualized dividend and a dividend yield of 0.6%. Monolithic Power Systems’s dividend payout ratio (DPR) is presently 49.05%.

Insider Activity at Monolithic Power Systems

In related news, EVP Maurice Sciammas sold 12,000 shares of the business’s stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $1,561.40, for a total transaction of $18,736,800.00. Following the transaction, the executive vice president owned 166,644 shares in the company, valued at $260,197,941.60. The trade was a 6.72% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Saria Tseng sold 7,565 shares of the company’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $1,700.00, for a total value of $12,860,500.00. Following the transaction, the executive vice president directly owned 144,218 shares of the company’s stock, valued at $245,170,600. The trade was a 4.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 25,111 shares of company stock worth $40,432,497 in the last 90 days. Company insiders own 3.60% of the company’s stock.

Institutional Trading of Monolithic Power Systems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MPWR. Royal Fund Management LLC raised its holdings in Monolithic Power Systems by 2.7% in the 1st quarter. Royal Fund Management LLC now owns 264 shares of the semiconductor company’s stock worth $289,000 after purchasing an additional 7 shares in the last quarter. Covestor Ltd boosted its stake in shares of Monolithic Power Systems by 29.0% during the 4th quarter. Covestor Ltd now owns 40 shares of the semiconductor company’s stock valued at $36,000 after purchasing an additional 9 shares in the last quarter. Bell Investment Advisors Inc boosted its stake in shares of Monolithic Power Systems by 23.7% during the 1st quarter. Bell Investment Advisors Inc now owns 47 shares of the semiconductor company’s stock valued at $51,000 after purchasing an additional 9 shares in the last quarter. Resonant Capital Advisors LLC increased its position in shares of Monolithic Power Systems by 4.1% during the fourth quarter. Resonant Capital Advisors LLC now owns 253 shares of the semiconductor company’s stock valued at $230,000 after buying an additional 10 shares during the period. Finally, CENTRAL TRUST Co increased its position 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 buying an additional 10 shares during the period. Hedge funds and other institutional investors own 93.46% of the company’s stock.

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.