Monolithic Power Systems Inc. (NASDAQ: MPWR) stock jumped 7.73% on Monday to $428.51 against a previous-day closing price of $397.78. With 0.79 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.64 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $429.60 whereas the lowest price it dropped to was $399.06. The 52-week range on MPWR shows that it touched its highest point at $541.39 and its lowest point at $301.69 during that stretch. It currently has a 1-year price target of $454.27. With its current market cap of 19.38 billion, MPWR has annualized dividend of $3.00 while the current yield stands at 0.70%. Beta for the stock currently stands at 1.13.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MPWR was up-trending over the past week, with a rise of 7.54%, but this was up by 19.74% over a month. Three-month performance surged to 34.99% while six-month performance fell -1.82%. The stock gained 6.02% in the past year, while it has gained 21.18% so far this year. A look at the trailing 12-month EPS for MPWR yields 8.10 with Next year EPS estimates of 12.94. For the next quarter, that number is 3.15. This implies an EPS growth rate of 44.50% for this year and 4.55% for next year. EPS is expected to grow by 24.54% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 32.10%.
Float and Shares Shorts:
At present, 46.83 million MPWR shares are outstanding with a float of 45.64 million shares on hand for trading. On Oct 13, 2022, short shares totaled 2.3 million, which was 4.92% higher than short shares on Sep 14, 2022. In addition to Mr. Michael R. Hsing as the firm’s Founder, Chairman, Pres & CEO, Mr. T. Bernie Blegen serves as its VP & CFO.
Through their ownership of 95.84% of MPWR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 66.97% of MPWR, in contrast to 32.19% held by mutual funds. Shares owned by individuals account for 22.12%. As the largest shareholder in MPWR with 10.44% of the stake, The Vanguard Group, Inc. holds 4,899,705 shares worth 4,899,705. A second-largest stockholder of MPWR, BlackRock Fund Advisors, holds 2,710,170 shares, controlling over 5.77% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in MPWR, holding 1,787,219 shares or 3.81% stake. With a 2.89% stake in MPWR, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 1,356,612 shares are owned by the mutual fund manager. The T Rowe Price New Horizons Fund, which owns about 2.57% of MPWR stock, is the second-largest Mutual Fund holder. It holds 1,207,460 shares valued at 426.97 million. Vanguard Mid Cap Index Fund holds 2.21% of the stake in MPWR, owning 1,038,863 shares worth 367.35 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MPWR since 15 analysts follow the stock currently. There are 13 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MPWR analysts setting a high price target of $620.00 and a low target of $400.00, the average target price over the next 12 months is $463.45. Based on these targets, MPWR could surge 44.69% to reach the target high and fall by -6.65% to reach the target low. Reaching the average price target will result in a growth of 8.15% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MPWR will report FY 2022 earnings on 02/08/2024. Analysts have provided yearly estimates in a range of $12.39 being high and $12.35 being low. For MPWR, this leads to a yearly average estimate of $12.36. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Monolithic Power Systems Inc. surprised analysts by $0.03 when it reported $3.53 EPS against a consensus estimate of $3.50. The surprise factor in the prior quarter was $0.31. Based on analyst estimates, the high estimate for the next quarter is $3.16 and the low estimate is $3.12. The average estimate for the next quarter is thus $3.13.
Dividends & Yield:
In terms of dividends, MPWR has a current ratio of $3.00, which is $3.00 over the trailing 12-months, while a dividend of $1.80 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and MPWR currently yields $0.70. In the past year, MPWR’s dividend yield has been $0.70, but when looking at the stock over the past five years, its yield has been $0.74.
Summary of Insider Activity:
Insiders traded MPWR stock several times over the past three months with 1 Buys and 31 Sells. In these transactions, 6,204 shares were bought while 111,241 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 123 over the past year. The total number of shares bought during that period was 356,755 while 556,080 shares were sold.