Monolithic Power Systems (NASDAQ:MPWR) Shares Gap Up After Earnings Beat

Monolithic Power Systems, Inc. (NASDAQ:MPWR) shares gapped up prior to trading on Friday following a better than expected earnings announcement. 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 changing hands.

The semiconductor company reported $4.79 earnings per share for the quarter, topping analysts’ consensus estimates of $4.74 by $0.05. Monolithic Power Systems had a net margin of 22.07% and a return on equity of 18.50%. The firm had revenue of $751.16 million during the quarter, compared to analyst estimates of $741.69 million. During the same quarter in the previous year, the business earned $4.09 EPS. The business’s revenue was up 20.8% on a year-over-year basis.

Monolithic Power Systems Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be given a dividend of $2.00 per share. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $8.00 annualized dividend and a dividend yield of 0.7%. This is a boost from Monolithic Power Systems’s previous quarterly dividend of $1.56. Monolithic Power Systems’s payout ratio is presently 15.93%.

More Monolithic Power Systems News

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

• Positive Sentiment: Q4 results topped estimates with record revenues across automotive, computing, communications and industrial end markets (revenue growth ~20.8% and EPS beat). This is the primary bullish catalyst. Read More.
• Positive Sentiment: Management raised FY/Q1 revenue guidance ($770M–$790M for Q1 vs. consensus ~$739M), signaling continued demand and giving analysts room to lift targets. Read More.
• Positive Sentiment: Board boosted the quarterly cash dividend to $2.00 (≈28% increase), a shareholder-friendly move that supports demand from income-oriented holders. Read More.
• Positive Sentiment: Analysts continue to raise targets — Needham to $1,300 (buy) and Wells Fargo to $1,350 (overweight) — reinforcing bullish sentiment and adding technical/flow support. Read More.
• Neutral Sentiment: Investor events and transcripts (earnings call and webinar) will be monitored for margin detail, backlog commentary and end-market strength — these will influence the next trading days but are informational until clarified. Read More.
• Neutral Sentiment: Some research pieces and previews highlight secular tailwinds (AI, data centers, automotive) that support the long-term case but depend on MPS execution vs. peers. Read More.
• Negative Sentiment: Rosenblatt’s newer target is well below the market (~$1,000 with a neutral rating), showing divergent analyst views and potential downside risk if momentum fades. Read More.
• Negative Sentiment: CFO transition announced (retirement after the 10-K) and recent insider sales by the CFO (3,000 shares) may raise short-term governance or liquidity concerns for some investors. Read More.

Analysts Set New Price Targets

Several research analysts have commented on MPWR shares. TD Cowen reaffirmed a “buy” rating on shares of Monolithic Power Systems in a research report on Friday, October 31st. Rosenblatt Securities raised their price objective on shares of Monolithic Power Systems from $950.00 to $1,000.00 and gave the stock a “neutral” rating in a research note on Friday. Citigroup boosted their target price on shares of Monolithic Power Systems from $1,100.00 to $1,250.00 and gave the stock a “buy” rating in a research report on Monday, November 3rd. Needham & Company LLC upped their target price on shares of Monolithic Power Systems from $1,250.00 to $1,300.00 and gave the company a “buy” rating in a research note on Friday. Finally, Wells Fargo & Company raised their price target on shares of Monolithic Power Systems from $1,200.00 to $1,350.00 and gave the stock an “overweight” rating in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus price target of $1,210.08.

Insider Transactions at Monolithic Power Systems

In other news, Director Victor K. Lee sold 600 shares of the stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $930.86, for a total value of $558,516.00. Following the completion of the transaction, the director owned 27,967 shares in the company, valued at approximately $26,033,361.62. This represents a 2.10% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Kuo Wei Herbert Chang sold 100 shares of the firm’s stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $896.97, for a total transaction of $89,697.00. Following the transaction, the director directly owned 426 shares of the company’s stock, valued at $382,109.22. The trade was a 19.01% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 69,776 shares of company stock worth $63,489,045. 3.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Monolithic Power Systems

Institutional investors have recently added to or reduced their stakes in the stock. Covestor Ltd lifted its position in shares of Monolithic Power Systems by 29.0% during the 4th quarter. Covestor Ltd now owns 40 shares of the semiconductor company’s stock worth $36,000 after buying an additional 9 shares during the period. Resonant Capital Advisors LLC raised its stake in Monolithic Power Systems by 4.1% during the fourth quarter. Resonant Capital Advisors LLC now owns 253 shares of the semiconductor company’s stock worth $230,000 after acquiring an additional 10 shares in the last quarter. True Wealth Design LLC lifted its holdings in shares of 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 acquiring an additional 11 shares during the period. YANKCOM Partnership lifted its holdings in Monolithic Power Systems by 6.7% during the 4th quarter. YANKCOM Partnership now owns 176 shares of the semiconductor company’s stock valued at $160,000 after purchasing an additional 11 shares during the last quarter. Finally, First National Bank of Hutchinson grew its stake in Monolithic Power Systems by 1.2% during the fourth quarter. First National Bank of Hutchinson now owns 948 shares of the semiconductor company’s stock worth $859,000 after buying an additional 11 shares during the last quarter. 93.46% of the stock is owned by institutional investors and hedge funds.

Monolithic Power Systems Trading Up 6.4%

The firm has a fifty day moving average price of $1,004.45 and a 200 day moving average price of $932.72. The firm has a market capitalization of $58.92 billion, a price-to-earnings ratio of 96.53, a P/E/G ratio of 3.25 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.