Monolithic Power Systems (NASDAQ:MPWR) Shares Gap Up Following Better-Than-Expected Earnings

Monolithic Power Systems, Inc. (NASDAQ:MPWR) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $1,155.99, but opened at $1,250.00. Monolithic Power Systems shares last traded at $1,222.2030, with a volume of 169,052 shares traded.

The semiconductor company reported $4.79 earnings per share for the quarter, beating analysts’ consensus estimates of $4.74 by $0.05. Monolithic Power Systems had a return on equity of 18.37% and a net margin of 71.22%.The company had revenue of $751.16 million for the quarter, compared to analyst estimates of $741.69 million. During the same quarter last year, the company earned $4.09 earnings per share. The company’s revenue for the quarter was up 20.8% on a year-over-year basis.

Monolithic Power Systems Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be given a $2.00 dividend. This is an increase from Monolithic Power Systems’s previous quarterly dividend of $1.56. This represents a $8.00 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Tuesday, March 31st. Monolithic Power Systems’s dividend payout ratio (DPR) is 15.93%.

Monolithic Power Systems News Summary

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

• Positive Sentiment: Q4 results beat modestly — EPS $4.79 vs. consensus $4.74 and revenue $751.2M, with strong margins and year‑over‑year revenue growth; the release and call reinforced the company’s execution. Press release: Q4 results
• Positive Sentiment: Management raised Q1 revenue guidance to $770M–$790M (above street consensus ~ $739M), giving the market forward visibility and supporting upside to near‑term estimates. Guidance commentary
• Positive Sentiment: Board approved a meaningful quarterly dividend increase to $2.00 (≈28% bump), signaling confidence in cash generation and returning capital to shareholders. Dividend announcement
• Positive Sentiment: Needham lifted its price target to $1,300 and kept a Buy rating, reinforcing analyst optimism and providing an upward anchor for investor expectations. Needham price target raise
• Neutral Sentiment: Company announced a CFO transition (Bernie Blegen to retire after the 2025 Form 10‑K) but he will remain through transition — governance change that bears watching but not an immediate operational concern. CFO transition
• Neutral Sentiment: Market commentary and transcripts (SeekingAlpha, Zacks) are circulating — useful for detail and modeling but contain no single surprise beyond the company release. Earnings coverage (Zacks)
• Negative Sentiment: Rosenblatt raised its target to $1,000 but kept a Neutral rating — that target sits below the current price and can be interpreted as a near‑term bearish data point for sentiment. Rosenblatt note (Benzinga)
• Negative Sentiment: CFO Theodore Blegen sold 3,000 shares (~$3.4M) in early February; repeated insider sales can prompt short‑term selling pressure or investor questions about timing of disposals. SEC filing: insider sale

Analyst Upgrades and Downgrades

A number of brokerages recently commented on MPWR. Weiss Ratings restated a “buy (b-)” rating on shares of Monolithic Power Systems in a research note on Friday, December 26th. Rosenblatt Securities increased their price objective on Monolithic Power Systems from $950.00 to $1,000.00 and gave the stock a “neutral” rating in a report on Friday. Truist Financial lifted their target price on Monolithic Power Systems from $1,163.00 to $1,375.00 and gave the company a “buy” rating in a report on Friday, December 19th. KeyCorp restated an “overweight” rating and issued a $1,500.00 price objective on shares of Monolithic Power Systems in a research report on Friday. Finally, Wolfe Research set a $1,200.00 target price on shares of Monolithic Power Systems and gave the stock an “outperform” rating in a research note on Tuesday, October 14th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, Monolithic Power Systems has an average rating of “Buy” and a consensus target price of $1,195.83.

Insider Activity

In other Monolithic Power Systems news, EVP Maurice Sciammas sold 27,966 shares of the stock in a transaction on Wednesday, November 19th. The shares were sold at an average price of $881.66, for a total transaction of $24,656,503.56. Following the completion of the sale, the executive vice president owned 148,306 shares of the company’s stock, valued at $130,755,467.96. This represents a 15.87% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Theodore Blegen sold 3,000 shares of the business’s stock in a transaction dated Monday, December 1st. The stock was sold at an average price of $908.21, for a total transaction of $2,724,630.00. Following the sale, the chief financial officer directly owned 71,332 shares in the company, valued at $64,784,435.72. The trade was a 4.04% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 69,776 shares of company stock valued at $63,489,045. Insiders own 3.40% of the company’s stock.

Hedge Funds Weigh In On Monolithic Power Systems

Hedge funds have recently bought and sold shares of the business. SJS Investment Consulting Inc. boosted its stake in shares of Monolithic Power Systems by 2,700.0% in the third quarter. SJS Investment Consulting Inc. now owns 28 shares of the semiconductor company’s stock worth $26,000 after acquiring an additional 27 shares during the period. True Wealth Design LLC boosted its stake in Monolithic Power Systems by 61.1% during the third quarter. True Wealth Design LLC now owns 29 shares of the semiconductor company’s stock valued at $26,000 after buying an additional 11 shares during the last quarter. Salomon & Ludwin LLC purchased a new stake in shares of Monolithic Power Systems during the 3rd quarter worth approximately $33,000. Thurston Springer Miller Herd & Titak Inc. bought a new position in shares of Monolithic Power Systems during the 4th quarter valued at approximately $34,000. Finally, IFP Advisors Inc increased its position in Monolithic Power Systems by 171.4% in the third quarter. IFP Advisors Inc now owns 38 shares of the semiconductor company’s stock worth $35,000 after purchasing an additional 24 shares during the last quarter. Hedge funds and other institutional investors own 93.46% of the company’s stock.

Monolithic Power Systems Stock Up 2.7%

The stock’s 50 day moving average is $998.38 and its 200-day moving average is $929.21. The company has a market cap of $56.87 billion, a PE ratio of 30.62, a P/E/G ratio of 3.19 and a beta of 1.45.

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.