Monolithic Power Systems, Inc. (NASDAQ:MPWR) Stock Has Average Target Price of $1,735.50

Shares of Monolithic Power Systems, Inc. (NASDAQ:MPWR) have received an average rating of “Moderate Buy” from the sixteen analysts that are currently covering the firm, Marketbeat Ratings reports. Three analysts have rated the stock with a hold rating and thirteen have issued a buy rating on the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $1,692.64.

Several research firms recently issued reports on MPWR. Wall Street Zen upgraded Monolithic Power Systems from a “hold” rating to a “buy” rating in a report on Sunday. Wells Fargo & Company reduced their target price on Monolithic Power Systems from $1,800.00 to $1,550.00 and set an “overweight” rating for the company in a report on Tuesday, October 20th. TD Cowen decreased their target price on Monolithic Power Systems from $1,850.00 to $1,700.00 and set a “buy” rating on the stock in a research report on Monday, October 19th. Needham & Company LLC lifted their price target on Monolithic Power Systems from $1,750.00 to $2,000.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Finally, Zacks Research downgraded Monolithic Power Systems from a “strong-buy” rating to a “hold” rating in a research note on Friday, October 2nd.

Monolithic Power Systems Stock Up 2.4%

Shares of NASDAQ MPWR opened at $1,167.27 on Tuesday. The firm has a market cap of $57.36 billion, a price-to-earnings ratio of 71.57 and a beta of 1.68. The company’s 50-day simple moving average is $1,285.22 and its 200-day simple moving average is $1,305.36. Monolithic Power Systems has a 52-week low of $833.18 and a 52-week high of $1,714.09.

Monolithic Power Systems (NASDAQ:MPWR) last released its quarterly earnings results on Thursday, July 30th. The semiconductor company reported $6.50 earnings per share for the quarter, topping 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 firm had revenue of $980.64 million during the quarter, compared to the consensus estimate of $903.30 million. During the same quarter in the prior year, the firm earned $4.21 EPS. The company’s revenue for the quarter was up 47.6% on a year-over-year basis. Equities research analysts anticipate that Monolithic Power Systems will post 23.95 EPS for the current fiscal year.

Monolithic Power Systems Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th were paid a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend was Wednesday, September 30th. Monolithic Power Systems’s payout ratio is 49.05%.

Key Monolithic Power Systems News

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

• Positive Sentiment: Analysts expect strong third-quarter results, driven by continued artificial-intelligence data-center demand, improving revenue expectations and growth across several business segments. The outlook builds on the company’s previous quarterly performance, when revenue rose 47.6% year over year and earnings exceeded consensus estimates. Can Healthy Top-Line Growth Benefit Monolithic Power’s Q3 Earnings?
• Positive Sentiment: Wall Street Zen upgraded MPWR to “Buy,” while the stock’s consensus price target was reported at $1,735.50. These recommendations indicate that some analysts see upside from current valuation levels, although the target is not a guarantee of future performance. Monolithic Power Systems Raised to Buy at Wall Street Zen Monolithic Power Systems Has Consensus Target Price of $1,735.50
• Neutral Sentiment: Reported short interest was zero shares, implying no measurable short-squeeze pressure. The figure may reflect a data or reporting anomaly, so it provides limited insight into investor positioning.
• Negative Sentiment: Rosen Law Firm announced an investigation into possible breaches of fiduciary duties by MPWR’s directors and officers. The development could increase legal costs, reputational risk and uncertainty for shareholders. Rosen Law Firm Announces Investigation
• Negative Sentiment: Schubert Jonckheer & Kolbe said it is investigating possible wrongdoing after a 30% stock decline and court rulings allowed key claims in a securities-fraud lawsuit against Monolithic Power, its CEO and former CFO to proceed. This adds an overhang ahead of the earnings report. Schubert Jonckheer Investor Reminder

Insiders Place Their Bets

In other news, Director Kuo Wei Chang sold 50 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $1,281.57, for a total value of $64,078.50. Following the completion of the sale, the director directly owned 515 shares in the company, valued at $660,008.55. This represents a 8.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Maurice Sciammas sold 30 shares of the business’s stock in a transaction on Monday, August 3rd. The stock was 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 directly owned 1,119 shares in the company, valued at approximately $1,503,868.86. This represents a 2.61% 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 130 shares of company stock valued at $175,397 in the last ninety days. Insiders own 3.60% of the company’s stock.

Hedge Funds Weigh In On Monolithic Power Systems

Several large investors have recently modified their holdings of the business. Oppenheimer & Co. Inc. lifted its holdings in Monolithic Power Systems by 2.9% during the 3rd quarter. Oppenheimer & Co. Inc. now owns 5,418 shares of the semiconductor company’s stock worth $7,299,000 after purchasing an additional 153 shares in the last quarter. Park Avenue Securities LLC grew its position in Monolithic Power Systems by 2.7% in the third quarter. Park Avenue Securities LLC now owns 3,241 shares of the semiconductor company’s stock worth $4,366,000 after acquiring an additional 86 shares in the last quarter. Geneva Partners LLC bought a new position in shares of Monolithic Power Systems during the 3rd quarter valued at about $3,262,000. Peterson Wealth Services raised its stake in shares of Monolithic Power Systems by 11.5% during the third quarter. Peterson Wealth Services now owns 1,454 shares of the semiconductor company’s stock worth $1,959,000 after acquiring an additional 150 shares in the last quarter. Finally, Leo Wealth LLC bought a new stake in Monolithic Power Systems in the third quarter worth $226,000. Hedge funds and other institutional investors own 93.46% of the company’s stock.

Monolithic Power Systems Company Profile

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.