Monolithic Power Systems Inc. (NASDAQ: MPWR) stock fell -5.51% on Tuesday to $423.70 against a previous-day closing price of $448.40. With 0.57 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.49 million shares. 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 $507.70. With its current market cap of 20.07 billion, MPWR has annualized dividend of $4.00 while the current yield stands at 0.94%. Beta for the stock currently stands at 1.14.
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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 5.26%, but this was down by -10.41% over a month. Three-month performance dropped to -12.22% while six-month performance rose 12.29%. The stock gained 1.33% in the past year, while it has gained 19.82% so far this year. A look at the trailing 12-month EPS for MPWR yields 9.66 with Next year EPS estimates of 13.81. For the next quarter, that number is 2.80. This implies an EPS growth rate of 79.10% for this year and 15.65% for next year. EPS is expected to grow by 25.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 27.50%.
Float and Shares Shorts:
At present, 47.23 million MPWR shares are outstanding with a float of 45.64 million shares on hand for trading. On Apr 27, 2023, short shares totaled 2.18 million, which was 4.60% higher than short shares on Mar 30, 2023. In addition to Mr. Michael R. Hsing as the firm’s Founder, Chairman, Pres & CEO, Mr. T. Bernie Blegen serves as its VP & CFO.
Institutional Ownership:
Through their ownership of 101.40% of MPWR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 66.73% of MPWR, in contrast to 35.95% held by mutual funds. Shares owned by individuals account for 22.08%. As the largest shareholder in MPWR with 10.42% of the stake, The Vanguard Group, Inc. holds 4,931,001 shares worth 4,931,001. A second-largest stockholder of MPWR, T. Rowe Price Associates, Inc., holds 3,651,445 shares, controlling over 7.72% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in MPWR, holding 2,846,228 shares or 6.02% stake. With a 2.93% stake in MPWR, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 1,384,232 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.21% of MPWR stock, is the second-largest Mutual Fund holder. It holds 1,045,291 shares valued at 482.89 million. Vanguard 500 Index Fund holds 2.21% of the stake in MPWR, owning 1,044,716 shares worth 482.63 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, MPWR reported revenue of $461.00M and operating income of $143.16M. The EBITDA in the recently reported quarter was $144.44M and diluted EPS was $2.37.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MPWR since 0 analysts follow the stock currently. 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 $540.00 and a low target of $475.00, the average target price over the next 12 months is $507.70. Based on these targets, MPWR could surge 27.45% to reach the target high and rise by 12.11% to reach the target low. Reaching the average price target will result in a growth of 19.83% 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.
Dividends & Yield:
In terms of dividends, MPWR has a current ratio of $4.00, which is $4.00 over the trailing 12-months, while a dividend of $1.95 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 $0.77. In the past year, MPWR’s dividend yield has been $0.77, but when looking at the stock over the past five years, its yield has been $0.73.
Summary of Insider Activity:
Insiders traded MPWR stock several times over the past three months with 5 Buys and 10 Sells. In these transactions, 59,979 shares were bought while 49,598 shares were sold. The number of buy transactions has increased to 21 while that of sell transactions has risen to 109 over the past year. The total number of shares bought during that period was 309,444 while 523,474 shares were sold.
