The State Board of Administration of Florida Retirement System has increased its stake in Monolithic Power Systems, Inc. (NASDAQ: MPWR) by 0.2% during the second quarter of 2023. According to the most recent filing with the Securities and Exchange Commission (SEC), the institutional investor now holds 48,350 shares of the semiconductor company, having purchased an additional 99 shares during this period. This investment is valued at approximately $35.36 million, representing 0.10% of Monolithic Power Systems.
Several other institutional investors have also adjusted their holdings in the company. Fortress Financial Solutions LLC raised its position by 1.7%, acquiring 12 additional shares to reach a total of 709 shares, valued at $518,000. Similarly, Wedmont Private Capital increased its stake by 1.3%, now owning 1,068 shares worth $802,000. Gilbert & Cook Inc. expanded its holdings by 2.3%, owning 655 shares valued at $479,000, while Confluence Wealth Services Inc. increased its position by 0.9%, totaling 2,067 shares worth $1.51 million. Notably, NewSquare Capital LLC significantly boosted its holdings by 76.0%, acquiring 19 additional shares to own 44 shares valued at $32,000.
As of now, institutional investors and hedge funds own 93.46% of Monolithic Power Systems’ stock, indicating strong institutional support for the semiconductor firm.
Insider Transactions and Corporate Performance
In related news, executive vice president Maurice Sciammas sold 3,976 shares of the company’s stock on November 24, 2023. The shares were sold at an average price of $895.23, yielding a total of approximately $3.56 million. Following this transaction, Sciammas retains 144,330 shares, valued at around $129.21 million, reflecting a 2.68% decrease in his position.
On November 25, Kuo Wei Herbert Chang, a director at Monolithic Power Systems, sold 100 shares at an average price of $896.97 for a total transaction value of $89,697. After this sale, Chang holds 426 shares, valued at approximately $382,109, representing a 19.01% decrease in his holdings.
Over the past three months, corporate insiders have sold a total of 102,426 shares valued at $94.58 million. Currently, corporate insiders own 3.40% of the company’s stock.
Quarterly Earnings and Future Outlook
Monolithic Power Systems released its quarterly earnings data on October 30, 2023. The company reported earnings per share (EPS) of $4.73, surpassing analysts’ consensus estimate of $4.62 by $0.11. The firm achieved a return on equity of 19.14% and a net margin of 73.17%. Revenue for the quarter reached $737.18 million, exceeding analyst expectations of $720.66 million. This represents an increase of 18.9% compared to the same quarter last year, where the firm posted an EPS of $4.06.
Looking ahead, Monolithic Power Systems has set guidance for the fourth quarter of 2025, with analysts forecasting an average EPS of 13.2 for the current year.
In addition, the company recently declared a quarterly dividend of $1.56, which was paid on October 15, 2023. Shareholders recorded on September 30, 2023, received this dividend, representing an annualized total of $6.24 and a dividend yield of 0.7%. The current dividend payout ratio stands at 15.93%.
Several research firms have recently updated their price targets for Monolithic Power Systems. Wolfe Research set a target of $1,200.00 and rated the stock as “outperform” in a note released on October 14, 2023. Needham & Company LLC raised its target from $820.00 to $1,025.00 with a “buy” rating. Furthermore, TD Cowen increased its price target from $1,100.00 to $1,250.00, also maintaining a “buy” rating.
Overall, Monolithic Power Systems has received one “Strong Buy” rating, ten “Buy” ratings, and three “Hold” ratings from analysts. The consensus rating remains a “Moderate Buy” with an average price target of $1,047.27, reflecting positive sentiment towards the company’s future performance in the semiconductor market.
