On June 8, 2023, financial news outlets reported that Brown Advisory Inc. had cut its position in Monolithic Power Systems, Inc. (NASDAQ: MPWR) by 8.6%. This comes after the institutional investor sold off 99,208 shares during the fourth quarter of the previous year. As of its most recent Securities and Exchange Commission (SEC) filing, Brown Advisory Inc. owned about 2.26% of Monolithic Power Systems worth $374,719,000.
Monolithic Power Systems is a company that designs, develops, and markets integrated power semiconductor solutions and power delivery architectures for various industries such as computing and storage, automotive, industrial, communications, and consumer applications markets. Its direct current (DC) to DC integrated circuits (ICs) are designed to convert and control voltages for different types of electronic systems including portable electronic devices like wireless LAN access points or medical equipment.
Despite this news from Brown Advisory Inc., several research firms have given positive ratings to Monolithic Power Systems stock in recent months. TD Cowen lowered their price objective on shares of Monolithic Power Systems from $550 to $500 but maintained an “outperform” rating on the stock in May 2023. Credit Suisse Group also gave the company an “outperform” rating in February 2023 while increasing their target price from $475 to $580.
Rosenblatt Securities reaffirmed a “buy” rating with a target price set at $620 on shares of Monolithic Power Systems in February 2023 as well. Truist Financial decreased its target price from $608 to $527 but still had a positive outlook on the company’s potential based on data analysis.
Finally, Raymond James increased their target price from $400 to $550 while giving the company an “outperform” rating earlier this year in February.
Based on data from Bloomberg’s research team as of June 8, 2023, the stock has a consensus rating of “Moderate Buy” and an average target price of $522.67. This expert analysis alongside the recent news from Brown Advisory Inc. shows that Monolithic Power Systems continues to be an interesting player in the high-tech industries, with tech analysts remaining positive on its future robustness and profitability potential.
Monolithic Power Systems, Inc.
MPWR
Buy
Updated on: 21/09/2023
Financial Health
Healthy
Debt to equity ratio: Neutral
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
Institutional Investors and Insiders Clash in Monolithic Power Systems Stock Trading
Monolithic Power Systems (MPS) has been attracting interest from institutional investors and hedge funds, with a number of them buying and selling shares during recent quarters. Among the investors showing interest in MPS are Guardian Wealth Advisors LLC, Achmea Investment Management B.V., Trifecta Capital Advisors LLC, Massmutual Trust Co. FSB ADV and CVA Family Office LLC. These investors have purchased new stakes or raised their positions in MPS, helping to increase the percentage of the stock held by hedge funds and other institutional investors to 96.42%.
Whilst some investors were buying shares, insiders such as VP Saria Tseng and CEO Michael Hsing were selling theirs. VP Saria Tseng sold 4,360 shares on Monday 3rd April for an average price of $487.99 per share. Following the transaction, Tseng’s stake in MPS was valued at approximately $131,771,939.70. Similarly, CEO Michael Hsing sold 11,242 shares on Wednesday 3rd May for an average price of $463.55 per share. After this transaction, Hsing directly owns 1,067,017 shares of the company’s stock valued at $494,615,730.35.
Despite these insider sales and purchases by institutional investors and hedge funds, MPS has maintained a healthy trading position within its market cap of $23.54 billion as well as within its P/E ratio of 51.55 and beta rating of 1.12 which translates into reasonable stability for traders looking into investing in MPS.
As at June 8th 2023 , The company’s stock traded with a volume of143990 shares compared to its average volume Traditionally experienced traders look out for relative higher trading volumes when analyzing trades keeping an eye upon major developments that shed light upon stock price movements
The market values show a fifty-day simple moving average value which was recorded at $462.53 and a 200-day simple moving average value which was recorded at $439.74, while the stock’s 52-week high stands at $553.64 and its 52-week low is valued at $301.69 giving investors multiple reference points to consider when it comes to investing in MPS.
It remains to be seen whether MPS will continue to attract interest from institutional investors while insiders decide to cash out of their positions, thus causing some form of turbulence within the market for Monolithic Power Systems in the foreseeable future.
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