Monolithic Power Systems (NASDAQ:MPWR) Shares Gap Down on Disappointing Earnings

Monolithic Power Systems, Inc. (NASDAQ:MPWR) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $919.81, but opened at $826.32. Monolithic Power Systems shares last traded at $775.54, with a volume of 418,073 shares.

The semiconductor company reported $2.99 earnings per share for the quarter, missing analysts’ consensus estimates of $3.04 by ($0.05). Monolithic Power Systems had a net margin of 21.70% and a return on equity of 20.24%. The company had revenue of $620.12 million during the quarter, compared to analysts’ expectations of $600.10 million.

Monolithic Power Systems Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, October 15th. Investors of record on Monday, September 30th were given a $1.25 dividend. The ex-dividend date was Monday, September 30th. This represents a $5.00 annualized dividend and a yield of 0.66%. Monolithic Power Systems’s dividend payout ratio (DPR) is presently 59.59%.

Analysts Set New Price Targets

MPWR has been the topic of a number of research reports. Raymond James raised their price target on Monolithic Power Systems from $770.00 to $925.00 and gave the company an “outperform” rating in a research report on Friday, August 2nd. Truist Financial restated a “buy” rating and issued a $994.00 target price (up previously from $918.00) on shares of Monolithic Power Systems in a research report on Wednesday, October 2nd. Needham & Company LLC reduced their price target on shares of Monolithic Power Systems from $1,000.00 to $950.00 and set a “buy” rating on the stock in a research report on Thursday. Deutsche Bank Aktiengesellschaft lifted their price target on shares of Monolithic Power Systems from $750.00 to $900.00 and gave the stock a “buy” rating in a research note on Friday, August 2nd. Finally, TD Cowen cut their price objective on shares of Monolithic Power Systems from $1,100.00 to $975.00 and set a “buy” rating for the company in a research note on Thursday. Ten analysts have rated the stock with a buy rating, According to data from MarketBeat.com, the company has an average rating of “Buy” and an average target price of $942.40.

Insider Buying and Selling

In other Monolithic Power Systems news, CFO Theodore Blegen sold 728 shares of the stock in a transaction on Thursday, August 8th. The shares were sold at an average price of $778.39, for a total transaction of $566,667.92. Following the completion of the sale, the chief financial officer now owns 64,178 shares of the company’s stock, valued at $49,955,513.42. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. In related news, EVP Deming Xiao sold 859 shares of the company’s stock in a transaction that occurred on Thursday, August 8th. The stock was sold at an average price of $778.39, for a total transaction of $668,637.01. Following the completion of the transaction, the executive vice president now owns 202,354 shares in the company, valued at $157,510,330.06. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Theodore Blegen sold 728 shares of the firm’s stock in a transaction on Thursday, August 8th. The stock was sold at an average price of $778.39, for a total value of $566,667.92. Following the completion of the sale, the chief financial officer now directly owns 64,178 shares of the company’s stock, valued at $49,955,513.42. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 39,636 shares of company stock valued at $36,459,953 over the last three months. 3.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Wealth Enhancement Advisory Services LLC raised its stake in Monolithic Power Systems by 7.5% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 2,681 shares of the semiconductor company’s stock worth $1,816,000 after buying an additional 187 shares in the last quarter. Diversified Trust Co bought a new position in shares of Monolithic Power Systems in the 1st quarter worth approximately $474,000. Sumitomo Mitsui Trust Holdings Inc. lifted its stake in shares of Monolithic Power Systems by 4.9% in the 1st quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 115,098 shares of the semiconductor company’s stock valued at $77,970,000 after purchasing an additional 5,335 shares during the period. Advisor Resource Council bought a new stake in shares of Monolithic Power Systems during the first quarter valued at approximately $241,000. Finally, First Trust Direct Indexing L.P. grew its stake in Monolithic Power Systems by 11.4% in the first quarter. First Trust Direct Indexing L.P. now owns 1,375 shares of the semiconductor company’s stock worth $932,000 after purchasing an additional 141 shares during the period. 93.46% of the stock is currently owned by institutional investors.

Monolithic Power Systems Stock Down 17.5 %

The firm has a market cap of $36.96 billion, a P/E ratio of 92.15, a P/E/G ratio of 4.17 and a beta of 1.11. The business has a fifty day simple moving average of $903.58 and a 200-day simple moving average of $822.06.

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.