Vest Financial LLC has significantly enhanced its investment in Monolithic Power Systems, Inc. (NASDAQ: MPWR), increasing its holdings by 52.2% during the third quarter of 2023. The company disclosed this information in its latest filing with the Securities and Exchange Commission (SEC). As of the filing, Vest Financial owns a total of 49,277 shares, which are valued at approximately $45.4 million.
Several other institutional investors have also adjusted their stakes in Monolithic Power Systems. Notably, Brighton Jones LLC increased its holdings by 46.0% in the fourth quarter, acquiring an additional 200 shares, bringing its total to 635 shares worth $376,000. Similarly, Empowered Funds LLC raised its position by 3.1% in the first quarter, now owning 5,325 shares valued at approximately $3.1 million.
Exchange Traded Concepts LLC and CX Institutional also made adjustments, with the former increasing its stake by 1.8% and the latter by 10.7% during the second quarter. Collectively, institutional investors hold a significant 93.46% of Monolithic Power Systems’ stock.
Insider Trading Activity
In related news, insider trading has also been noted at Monolithic Power Systems. Chief Financial Officer Theodore Blegen sold 3,000 shares on December 1, 2023, at an average price of $908.21, totaling $2.7 million. Following this sale, he retains 71,332 shares, valued at around $64.8 million, representing a 4.04% decrease in his ownership.
Director Victor K. Lee also participated in selling activities, offloading 1,000 shares for a total of $951,720 on December 24, 2023. After this transaction, he holds 28,567 shares valued at approximately $27.2 million. Recent insider trading activity indicates that insiders have sold a total of 71,276 shares worth approximately $64.8 million. Currently, corporate insiders own 3.40% of the company’s stock.
Financial Performance and Dividend Announcement
Monolithic Power Systems reported its quarterly earnings on October 30, 2023, posting earnings per share (EPS) of $4.73, surpassing analysts’ expectations of $4.62 by $0.11. The company’s revenue for the quarter reached $737.18 million, exceeding the consensus estimate of $720.66 million and marking an increase of 18.9% compared to the same quarter last year. The company also achieved a return on equity of 18.37% and a net margin of 71.22%.
In a recent dividend announcement, Monolithic Power Systems declared a quarterly dividend of $1.56 per share, which was paid on January 15, 2024. Investors of record on December 31, 2023, received this dividend, reflecting an annualized payout of $6.24 and a yield of 0.6%. The company’s dividend payout ratio stands at 15.93%.
Analysts have responded positively to the company’s performance, with several raising their price targets. Truist Financial increased its target from $1,163.00 to $1,375.00, maintaining a “buy” rating. Citigroup also raised its target to $1,250.00, while Wolfe Research set a price objective of $1,200.00. Overall, Monolithic Power Systems enjoys a consensus rating of “Moderate Buy” with an average target price of $1,074.58.
Founded in 1997 and headquartered in Kirkland, Washington, Monolithic Power Systems specializes in designing and supplying high-performance power management solutions for a wide range of electronic systems. The company focuses on analog and mixed-signal integrated circuits, catering to various applications, including DC-DC switching regulators and power management integrated circuits.
