Monolithic Power Systems (MPWR) Downgraded by Zacks Investment Research to Sell

Zacks Investment Research downgraded shares of Monolithic Power Systems (NASDAQ:MPWR) from a hold rating to a sell rating in a report released on Wednesday, Zacks.com reports.

According to Zacks, “Monolithic reported modest first quarter results, where in the bottom line matched the Zacks Consensus Estimate and the top line marginally surpassed the same. The company also provided a tepid forthcoming revenue guidance. . Intensifying competition from peers and lack of geographic diversity in terms of end-customers are headwinds. Shares of the company have also underperformed the industry in the past year. However, the company’s strategic business mix in diversified markets is also a positive. Higher dollar content in new servers based on Purley platform is expected to drive top-line growth.”

MPWR has been the subject of a number of other research reports. BidaskClub raised shares of Monolithic Power Systems from a buy rating to a strong-buy rating in a report on Friday, February 15th. Needham & Company LLC cut shares of Monolithic Power Systems from a buy rating to a hold rating in a report on Friday, May 3rd. Deutsche Bank increased their target price on shares of Monolithic Power Systems from $135.00 to $140.00 and gave the stock a buy rating in a report on Wednesday, February 13th. Finally, ValuEngine raised shares of Monolithic Power Systems from a hold rating to a buy rating in a report on Thursday, January 10th. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and seven have assigned a buy rating to the company. The stock presently has an average rating of Buy and an average target price of $148.88.

MPWR traded down $0.58 on Wednesday, hitting $136.15. 339,835 shares of the stock were exchanged, compared to its average volume of 298,720. Monolithic Power Systems has a 12 month low of $101.99 and a 12 month high of $161.22. The stock has a market capitalization of $5.88 billion, a price-to-earnings ratio of 56.97, a P/E/G ratio of 2.09 and a beta of 1.46.

Monolithic Power Systems (NASDAQ:MPWR) last posted its quarterly earnings data on Thursday, May 2nd. The semiconductor company reported $0.84 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.84. Monolithic Power Systems had a net margin of 18.43% and a return on equity of 17.99%. The business had revenue of $141.40 million during the quarter, compared to analysts’ expectations of $141.11 million. During the same quarter in the prior year, the business posted $0.79 earnings per share. Monolithic Power Systems’s revenue was up 9.4% compared to the same quarter last year. Sell-side analysts anticipate that Monolithic Power Systems will post 2.62 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Monday, April 15th. Stockholders of record on Friday, March 29th were issued a $0.40 dividend. The ex-dividend date of this dividend was Thursday, March 28th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.18%. This is a boost from Monolithic Power Systems’s previous quarterly dividend of $0.30. Monolithic Power Systems’s dividend payout ratio is 66.95%.

In other news, CFO Theodore Blegen sold 1,681 shares of the stock in a transaction dated Wednesday, May 8th. The shares were sold at an average price of $138.03, for a total value of $232,028.43. Following the completion of the transaction, the chief financial officer now owns 81,509 shares of the company’s stock, valued at $11,250,687.27. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Saria Tseng sold 6,495 shares of the stock in a transaction dated Thursday, April 18th. The stock was sold at an average price of $155.33, for a total transaction of $1,008,868.35. Following the completion of the transaction, the vice president now directly owns 317,813 shares of the company’s stock, valued at approximately $49,365,893.29. The disclosure for this sale can be found here. Insiders sold 397,365 shares of company stock valued at $54,105,179 in the last three months. Company insiders own 4.00% of the company’s stock.

Hedge funds and other institutional investors have recently modified their holdings of the stock. Principal Financial Group Inc. increased its position in Monolithic Power Systems by 4.7% during the 1st quarter. Principal Financial Group Inc. now owns 175,700 shares of the semiconductor company’s stock valued at $23,806,000 after purchasing an additional 7,832 shares during the period. Coldstream Capital Management Inc. acquired a new stake in Monolithic Power Systems during the 1st quarter valued at approximately $208,000. GAM Holding AG increased its position in Monolithic Power Systems by 75.5% during the 1st quarter. GAM Holding AG now owns 46,156 shares of the semiconductor company’s stock valued at $6,254,000 after purchasing an additional 19,852 shares during the period. Rockefeller Capital Management L.P. acquired a new stake in Monolithic Power Systems during the 1st quarter valued at approximately $35,000. Finally, MML Investors Services LLC increased its position in Monolithic Power Systems by 11.5% during the 1st quarter. MML Investors Services LLC now owns 4,332 shares of the semiconductor company’s stock valued at $587,000 after purchasing an additional 447 shares during the period. Institutional investors and hedge funds own 99.03% of the company’s stock.

About Monolithic Power Systems

Monolithic Power Systems, Inc designs, develops, and markets integrated power semiconductor solutions and power delivery architectures for consumer, computing and storage, industrial, automotive, and communications markets. It offers direct current (DC) to DC integrated circuits (ICs) that are used to convert and control voltages of various electronic systems, such as portable electronic devices, wireless LAN access points, computers, monitors, automobiles, and medical equipment.

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