Analysts: Monolithic Power Systems, Inc. (MPWR) Has Over 29.54% Upside Potential

It has been reported that multiple insider activity took place at Monolithic Power Systems, Inc. (MPWR). Director Moyer James C sold 15,000 shares for $569,083 in transaction occurred on 2019/05/13. After making this transaction, Director owns a direct stake of shares, worth $73,508,451, as per the last closing price. On 2019/05/09 Hsing Michael, CEO at MPWR, dumped 25,863 shares at an average price of $136.45 per share. The selling total is valued at $157,000,000.

CFO, Blegen Theodore had divested 1,681 shares for $81,509 through a trade on 2019/05/08. Following this activity, the insider holds -6 shares worth $10,528,518 as of recent close.

iShares Core S&P Midcap ETF revealed as top hedge fund owner in Monolithic Power Systems, Inc. (MPWR) with a stake of over 1.14M MPWR shares as of March 30, with a market value of approx. $154.1M as of today. The second largest holder, Vanguard Small-Cap Index Fund, with 1.03M shares which equates to $128.84M worth of the stock. At third is Vanguard Total Stock Market Index Fund, which stood pat with 1M shares, a 2.26% position in Monolithic Power Systems, Inc., worth $125.54M. The insider holding in stood at 6.7% while institutions hold 0%.

Monolithic Power Systems, Inc. (NASDAQ:MPWR) rose 0.65% in recent trade and currently has a stock-market value of $5.58B. The shares finished at $129.17, after trading as low as $125.9112 earlier in the session. It hit an intraday high Wednesday at $130.12. Trading activity significantly weakened as the volume at ready counter decreased to 181,639 shares versus 323,615 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 306,400 shares. The stock is now 26.65% above against its bear-market low of $101.99 on October 26, 2018. It has retreated -24.81% since it’s 52-week high of $161.22 reached in April. Now the market price is up 2.38% on the year and up 11.11% YTD.

MPWR stock’s 50 day simple moving average (SMA 50) price is $143.45 and its 200-day simple moving average (SMA 200) price is $131.92. The company’s stock currently has a total float of 41.63M shares. Its weekly volatility is hovering around 3.84% and felt 3.16% volatility in price over a month. On the upside, the share price will test short term resistance at around $130.89. On a downside, the stock is likely to find some support, which begins at $126.68. The failure to get near-term support could push it to $124.19.

It had seen a negative analyst call from Needham, which downgraded the stock from Buy to Hold on May 03. Analysts at KeyBanc Capital Markets, shed their positive views on May 03 by lowering it fromOverweight to Sector Weight. Brokerage firm Needham, looks cautious as they stick to prior recommendation of Buy, in a call on February 13. However, they did change the target price from $155 to $145. Cowen, reiterated their call for Outperform, on October 26. On the other hand, they had set new target price to $165 versus $180.

When looking at valuations, Monolithic Power Systems, Inc. (MPWR) has a pricey P/E of 53.13x as compared to industry average of 6.62x. Moreover, it trades for 26.44 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 8.57x price/book and 9.39x price/sales. Compared to others, Monolithic Power Systems, Inc. is in a different league with regards to profitability, having net margins of 15.1%. To put some perspective around this, the industry’s average net margin is 26.28%. MPWR’s ROE is 15%, which is also considerably worse than the industry’s ROE of 18.99%. It’s also very liquid in the near term, with a current ratio of 7.2. The stock has a debt/capital of 0.

Shares of MPWR have dropped -17.8% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Monolithic Power Systems, Inc. (NASDAQ:MPWR) has topped consensus earnings estimates in 5 quarters (41%), missed earnings in 6 quarters (50%), whereas at 1 occasion EPS met analyst expectations. MPWR last reported earnings that receded expectations. The company raked in $0.84 per share, 2000% change on the same period last year. That was worse than consensus for $0.84. Revenue for the recent quarter stood at $141.36 million, up 9% on last year and below the $141.11 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $150.45 million to $150.7 million, which should be compared with $159.89 million generated last year. EPS is seen in a range of $0.92 to $0.93, against the $1.08 reported a year ago.