Monolithic Power Systems (NASDAQ:MPWR) Reaches New 1-Year High – Should You Buy?

Monolithic Power Systems, Inc. (NASDAQ:MPWR)’s stock price reached a new 52-week high during mid-day trading on Friday . The company traded as high as $954.81 and last traded at $943.75, with a volume of 89037 shares trading hands. The stock had previously closed at $930.51.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on MPWR shares. Needham & Company LLC increased their price objective on Monolithic Power Systems from $820.00 to $1,025.00 and gave the stock a “buy” rating in a report on Monday, September 29th. KeyCorp increased their price target on shares of Monolithic Power Systems from $950.00 to $1,050.00 and gave the stock an “overweight” rating in a report on Tuesday. Wells Fargo & Company boosted their price objective on shares of Monolithic Power Systems from $730.00 to $750.00 and gave the company an “equal weight” rating in a research note on Friday, August 1st. Weiss Ratings reiterated a “hold (c+)” rating on shares of Monolithic Power Systems in a research note on Saturday, September 27th. Finally, Loop Capital raised their price target on shares of Monolithic Power Systems from $760.00 to $800.00 and gave the company a “buy” rating in a report on Wednesday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $880.50.

Monolithic Power Systems Price Performance

The firm’s 50 day moving average is $846.21 and its 200 day moving average is $718.53. The company has a market capitalization of $44.00 billion, a PE ratio of 23.93, a P/E/G ratio of 3.42 and a beta of 1.27.

Monolithic Power Systems (NASDAQ:MPWR) last announced its quarterly earnings results on Thursday, July 31st. The semiconductor company reported $4.21 earnings per share for the quarter, beating the consensus estimate of $4.12 by $0.09. Monolithic Power Systems had a net margin of 73.17% and a return on equity of 19.14%. The business had revenue of $664.57 million during the quarter, compared to analysts’ expectations of $648.74 million. During the same quarter in the prior year, the company posted $3.17 EPS. The firm’s revenue for the quarter was up 31.0% compared to the same quarter last year. Monolithic Power Systems has set its Q3 2025 guidance at EPS. As a group, analysts predict that Monolithic Power Systems, Inc. will post 13.2 EPS for the current fiscal year.

Monolithic Power Systems Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Tuesday, September 30th will be issued a dividend of $1.56 per share. This represents a $6.24 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Tuesday, September 30th. Monolithic Power Systems’s payout ratio is currently 16.25%.

Insider Buying and Selling at Monolithic Power Systems

In other news, Director Carintia Martinez sold 1,400 shares of the business’s stock in a transaction that occurred on Thursday, September 18th. The stock was sold at an average price of $900.00, for a total transaction of $1,260,000.00. Following the transaction, the director directly owned 878 shares of the company’s stock, valued at approximately $790,200. The trade was a 61.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Theodore Blegen sold 3,000 shares of the company’s stock in a transaction that occurred on Wednesday, October 1st. The shares were sold at an average price of $913.22, for a total value of $2,739,660.00. Following the transaction, the chief financial officer owned 37,940 shares of the company’s stock, valued at approximately $34,647,566.80. This represents a 7.33% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 65,702 shares of company stock worth $53,834,480 over the last three months. 3.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its stake in shares of Monolithic Power Systems by 0.3% during the 2nd quarter. Vanguard Group Inc. now owns 5,939,946 shares of the semiconductor company’s stock valued at $4,344,358,000 after purchasing an additional 19,277 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in Monolithic Power Systems by 33.1% in the first quarter. Price T Rowe Associates Inc. MD now owns 2,034,731 shares of the semiconductor company’s stock worth $1,180,104,000 after buying an additional 506,430 shares during the period. Invesco Ltd. boosted its position in Monolithic Power Systems by 7.5% during the 1st quarter. Invesco Ltd. now owns 1,249,335 shares of the semiconductor company’s stock valued at $724,589,000 after acquiring an additional 86,853 shares in the last quarter. JPMorgan Chase & Co. boosted its position in Monolithic Power Systems by 36.1% during the 2nd quarter. JPMorgan Chase & Co. now owns 856,725 shares of the semiconductor company’s stock valued at $626,592,000 after acquiring an additional 227,159 shares in the last quarter. Finally, Bank of America Corp DE grew its holdings 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 acquiring an additional 105,721 shares during the period. 93.46% of the stock is currently owned by institutional investors.

About Monolithic Power Systems

Monolithic Power Systems, Inc engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the storage and computing, automotive, enterprise data, consumer, communications, and industrial markets. The company provides direct current (DC) to DC integrated circuits (ICs) that are used to convert and control voltages of various electronic systems, such as cloud-based CPU servers, server artificial intelligence applications, storage applications, commercial notebooks, digital cockpit, power sources, home appliances, 4G and 5G infrastructure, and satellite communications applications.