Monolithic Power Systems (NASDAQ:MPWR), a notable player in the semiconductor space, has recently received a series of critical ratings updates, affirming its potential for growth in a competitive market. On March 21, 2025, financial analysts at Oppenheimer reaffirmed their "outperform" rating for MPWR, setting a price target of $800.00 per share. This target suggests a significant potential upside of 37.73% from the stock's previous close.
Other investment firms have also expressed bullish sentiments about Monolithic Power Systems. Needham & Company LLC followed suit by raising their target price from $600.00 to $800.00, marking their rating as a "buy" on February 7, 2025. Loop Capital similarly increased their price objective from $660.00 to $760.00, endorsing the company's positive outlook, while Wells Fargo & Company reduced their target from $710.00 to $665.00 but maintained an equal weight rating on the stock.
Citigroup also weighed in, initiating coverage on Monolithic Power Systems on December 11, 2024, with a "buy" rating and a $700.00 price target. Meanwhile, Rosenblatt Securities adjusted their price objective down from $800.00 to $750.00, citing a neutral stance, but overall, the general market sentiment remains favorable.
MarketBeat data reveals that Monolithic Power Systems holds an average rating of "Moderate Buy" among analysts, with an average target price of $851.58, indicating broad confidence in its growth potential. However, on March 21, the stock saw a decline, trading down $28.17 to $580.85, with a total of 220,632 shares exchanged that day, below the typical volume of 876,920 shares. The stock has experienced fluctuations, with a 1-year low of $546.71 and a 1-year high of $959.64.
The company boasts an impressive market capitalization of $27.80 billion and a P/E ratio of 15.80. Its price-to-earnings-growth ratio sits at 2.60, and the beta is recorded at 1.03. Moreover, the stock's performance has been monitored closely, showing a 50-day moving average of $636.31 and a 200-day average of $709.91.
In its latest earnings report, Monolithic Power Systems disclosed earnings per share (EPS) of $3.17 for its quarterly results, falling short of analysts’ consensus estimates of $4.01 by $0.84. Nonetheless, the company reported a robust return on equity of 20.36% and an astoundingly high net margin of 80.95%. Looking ahead, sell-side analysts project that Monolithic Power Systems will achieve an EPS of 13.2 for the current fiscal year.
In recent updates, insider trading activity has also been notable. EVP Maurice Sciammas sold 7,000 shares of MPWR on February 7, 2025, at an average price of $701.98, resulting in a total transaction value of $4,913,860. Following this transaction, Sciammas now owns 16,015 shares valued at approximately $11,242,209.70, reflecting a decrease in ownership by 30.41%. Currently, company insiders hold around 3.70% of the stock.
Furthermore, institutional interest in Monolithic Power Systems has surged. Various large investors have recently adjusted their stakes, signaling confidence in the company's future. For instance, Tradewinds Capital Management LLC boosted its stake by 120% in the fourth quarter, acquiring 44 shares valued at $26,000 after purchasing an additional 24 shares. OFI Invest Asset Management has also acquired a new position valued at approximately $27,000, while Fourth Dimension Wealth LLC made a new investment worth about $29,000. Additionally, Itau Unibanco Holding S.A. expanded its holdings by 637.5% during the same quarter, bringing in 59 shares valued at $35,000. Golden State Wealth Management LLC also entered with a stake worth about $39,000.
As a result, approximately 93.46% of Monolithic Power Systems' stock is currently owned by institutional investors, highlighting a solid backing from the investment community.
Monolithic Power Systems plays a vital role in the semiconductor market, focused on designing, developing, and selling semiconductor-based power electronics solutions for multiple sectors, including automotive, communications, and consumer markets. Its products are especially integral in powering applications ranging from cloud computing to 5G infrastructure.
With the analysts’ solid recommendations and a vibrant stock holding by institutional entities, Monolithic Power Systems appears well-positioned for future growth as it navigates the dynamic landscape of the semiconductor industry.
