The State Board of Administration of Florida Retirement System has increased its position in shares of Monolithic Power Systems, Inc. (NASDAQ: MPWR) by 0.2% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the institutional investor now holds 48,350 shares of the semiconductor company’s stock, having acquired an additional 99 shares during this period. The board’s stake is valued at approximately $35.36 million.
Several other large investors also adjusted their holdings in Monolithic Power Systems. Fortress Financial Solutions LLC increased its position by 1.7%, now owning 709 shares valued at $518,000 after purchasing 12 shares. Similarly, Wedmont Private Capital raised its stake by 1.3%, bringing its total to 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% to own 2,067 shares worth $1.51 million. Notably, NewSquare Capital LLC significantly boosted its stake by 76.0%, acquiring 44 shares valued at $32,000.
Institutional investors and hedge funds now collectively own 93.46% of Monolithic Power Systems’ stock.
In related insider trading activity, Executive Vice President Maurice Sciammas sold 3,976 shares on November 24, 2023, at an average price of $895.23, totaling approximately $3.56 million. Following this transaction, he holds 144,330 shares valued at about $129.21 million, marking a 2.68% decrease in his position. Additionally, Director Kuo Wei Herbert Chang sold 100 shares on November 25, 2023, for a total of $89,697, reducing his holdings to 426 shares valued at $382,109. Over the last three months, corporate insiders have sold 102,426 shares valued at $94.58 million, with insiders retaining 3.40% of the company’s stock.
Monolithic Power Systems recently reported its quarterly earnings on October 30, 2023. The company achieved an earnings per share (EPS) of $4.73, surpassing analysts’ expectations of $4.62 by $0.11. The company recorded a return on equity of 19.14% and a net margin of 73.17%. Revenue for the quarter reached $737.18 million, exceeding the forecast of $720.66 million. This reflects an 18.9% increase year-over-year, up from an EPS of $4.06 reported in the same quarter the previous year.
Looking ahead, Monolithic Power Systems has provided guidance for its fourth quarter of 2023, with analysts estimating an average EPS of 13.2 for the current year.
In addition to its financial performance, Monolithic Power Systems announced a quarterly dividend of $1.56, which was paid on October 15, 2023. Stockholders of record as of September 30, 2023, received this dividend, equating to an annualized payout of $6.24 and a yield of 0.7%. The company’s dividend payout ratio stands at 15.93%.
Analysts have recently revised their price targets for Monolithic Power Systems. Wolfe Research set a new target of $1,200.00, maintaining an “outperform” rating. Needham & Company raised its target from $820.00 to $1,025.00 while issuing a “buy” rating. Cowen reiterated its “buy” rating and updated its target price to $1,250.00. Additionally, Rosenblatt Securities increased its target from $800.00 to $950.00, offering a “neutral” rating. Currently, one analyst has rated the stock as a Strong Buy, ten have given it a Buy rating, and three have issued Hold ratings, resulting in a consensus rating of “Moderate Buy” with an average price target of $1,047.27
