Monolithic Power Systems (NASDAQ:MPWR) Shares Gap Down After Earnings Miss

Monolithic Power Systems, Inc. (NASDAQ:MPWR) shares gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. 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 trading hands.

The semiconductor company reported $2.99 earnings per share for the quarter, missing analysts’ consensus estimates of $3.04 by ($0.05). The business had revenue of $620.12 million during the quarter, compared to the consensus estimate of $600.10 million. Monolithic Power Systems had a net margin of 21.29% and a return on equity of 21.00%.

Monolithic Power Systems Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, October 15th. Investors of record on Monday, September 30th were paid a $1.25 dividend. This represents a $5.00 annualized dividend and a yield of 0.66%. The ex-dividend date of this dividend was Monday, September 30th. Monolithic Power Systems’s dividend payout ratio is 56.37%.

Wall Street Analysts Forecast Growth

MPWR has been the subject of a number of analyst reports. Needham & Company LLC cut their price objective on Monolithic Power Systems from $1,000.00 to $950.00 and set a “buy” rating for the company in a report on Thursday. Truist Financial reissued a “buy” rating and set a $994.00 price target (up from $918.00) on shares of Monolithic Power Systems in a report on Wednesday, October 2nd. KeyCorp raised their price objective on shares of Monolithic Power Systems from $975.00 to $1,075.00 and gave the stock an “overweight” rating in a report on Friday, August 2nd. Raymond James boosted their target price on Monolithic Power Systems from $770.00 to $925.00 and gave the stock an “outperform” rating in a report on Friday, August 2nd. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $880.00 price target on shares of Monolithic Power Systems in a report on Tuesday. Ten research analysts have rated the stock with a buy rating, According to MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $942.40.

Insider Buying and Selling

In other news, EVP Deming Xiao sold 859 shares of the business’s stock in a transaction 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 sale, the executive vice president now owns 202,354 shares in the company, valued at $157,510,330.06. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. In related news, EVP Deming Xiao sold 859 shares of the business’s stock in a transaction that occurred on Thursday, August 8th. The shares were sold at an average price of $778.39, for a total transaction of $668,637.01. Following the completion of the sale, the executive vice president now directly owns 202,354 shares of the company’s stock, valued at $157,510,330.06. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Michael Hsing sold 2,790 shares of the stock in a transaction that occurred on Thursday, August 8th. The shares were sold at an average price of $778.39, for a total transaction of $2,171,708.10. Following the completion of the transaction, the chief executive officer now owns 865,332 shares in the company, valued at $673,565,775.48. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 39,636 shares of company stock worth $36,459,953 in the last quarter. Insiders own 3.70% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in MPWR. Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in Monolithic Power Systems by 19.7% during the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 55,480 shares of the semiconductor company’s stock worth $37,583,000 after buying an additional 9,125 shares during the last quarter. Cetera Investment Advisers boosted its stake in Monolithic Power Systems by 237.3% during the 1st quarter. Cetera Investment Advisers now owns 6,766 shares of the semiconductor company’s stock worth $4,583,000 after acquiring an additional 4,760 shares during the last quarter. Sumitomo Mitsui Trust Holdings Inc. grew its holdings in Monolithic Power Systems by 4.9% during the first 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. Czech National Bank increased its stake in Monolithic Power Systems by 9.8% in the second quarter. Czech National Bank now owns 9,274 shares of the semiconductor company’s stock valued at $7,620,000 after purchasing an additional 824 shares in the last quarter. Finally, Acadian Asset Management LLC raised its holdings in Monolithic Power Systems by 224.4% in the first quarter. Acadian Asset Management LLC now owns 1,528 shares of the semiconductor company’s stock worth $1,034,000 after purchasing an additional 1,057 shares during the period. 93.46% of the stock is currently owned by institutional investors.

Monolithic Power Systems Price Performance

The company has a market capitalization of $37.02 billion, a P/E ratio of 85.61, a PEG ratio of 4.25 and a beta of 1.11. The business’s 50-day moving average price is $900.59 and its two-hundred day moving average price is $821.62.

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.