Monolithic Power Systems (NASDAQ:MPWR) Shares Down 8% – Here’s Why

Monolithic Power Systems, Inc. (NASDAQ:MPWR)’s stock price was down 8% during trading on Tuesday . The company traded as low as $1,522.74 and last traded at $1,519.7070. Approximately 448,490 shares traded hands during trading, a decline of 29% from the average session volume of 630,150 shares. The stock had previously closed at $1,652.29.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on MPWR. Needham & Company LLC boosted their price target on Monolithic Power Systems from $1,300.00 to $1,750.00 and gave the company a “buy” rating in a report on Friday, May 1st. Zacks Research downgraded Monolithic Power Systems from a “strong-buy” rating to a “hold” rating in a report on Friday, April 10th. KeyCorp increased their target price on shares of Monolithic Power Systems from $1,500.00 to $2,000.00 and gave the stock an “overweight” rating in a report on Friday, May 1st. Wells Fargo & Company raised their target price on shares of Monolithic Power Systems from $1,650.00 to $1,860.00 and gave the company an “overweight” rating in a research report on Friday, May 1st. Finally, Rosenblatt Securities boosted their price target on shares of Monolithic Power Systems from $1,000.00 to $1,575.00 and gave the company a “neutral” rating in a report on Friday, May 1st. Twelve analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, Monolithic Power Systems currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,599.17.

Monolithic Power Systems Price Performance

The business has a 50-day moving average of $1,533.91 and a two-hundred day moving average of $1,223.25. The company has a market cap of $76.82 billion, a P/E ratio of 112.74, a P/E/G ratio of 2.68 and a beta of 1.69.

Monolithic Power Systems (NASDAQ:MPWR) last posted its earnings results on Thursday, April 30th. The semiconductor company reported $5.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.90 by $0.20. The company had revenue of $804.19 million for the quarter, compared to analyst estimates of $781.93 million. Monolithic Power Systems had a return on equity of 19.58% and a net margin of 22.84%.The firm’s quarterly revenue was up 26.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $4.04 earnings per share. Equities analysts anticipate that Monolithic Power Systems, Inc. will post 20.13 EPS for the current fiscal year.

Monolithic Power Systems Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be paid a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Tuesday, June 30th. Monolithic Power Systems’s payout ratio is 57.68%.

Insider Activity at Monolithic Power Systems

In other news, EVP Deming Xiao sold 30,000 shares of the company’s stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $1,654.55, for a total transaction of $49,636,500.00. Following the transaction, the executive vice president directly owned 205,959 shares of the company’s stock, valued at approximately $340,769,463.45. This represents a 12.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Maurice Sciammas sold 30 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $1,533.95, for a total value of $46,018.50. Following the sale, the executive vice president owned 1,179 shares of the company’s stock, valued at approximately $1,808,527.05. This represents a 2.48% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 113,073 shares of company stock valued at $160,875,958 over the last three months. Company insiders own 3.60% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in MPWR. Brighton Jones LLC increased its position in Monolithic Power Systems by 46.0% during the 4th quarter. Brighton Jones LLC now owns 635 shares of the semiconductor company’s stock valued at $376,000 after buying an additional 200 shares in the last quarter. Empowered Funds LLC boosted its holdings in Monolithic Power Systems by 3.1% in the first quarter. Empowered Funds LLC now owns 5,325 shares of the semiconductor company’s stock worth $3,088,000 after acquiring an additional 161 shares in the last quarter. NewEdge Advisors LLC grew its stake in shares of Monolithic Power Systems by 3.5% during the second quarter. NewEdge Advisors LLC now owns 9,383 shares of the semiconductor company’s stock worth $6,863,000 after acquiring an additional 314 shares during the last quarter. Treasurer of the State of North Carolina grew its stake in shares of Monolithic Power Systems by 35.2% during the second quarter. Treasurer of the State of North Carolina now owns 35,789 shares of the semiconductor company’s stock worth $26,175,000 after acquiring an additional 9,315 shares during the last quarter. Finally, Globeflex Capital L P acquired a new position in shares of Monolithic Power Systems during the second quarter valued at about $347,000. 93.46% of the stock is currently owned by hedge funds and other institutional investors.

About Monolithic Power Systems

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.