The stock of Monolithic Power Systems Inc. (NASDAQ:MPWR) increased by $1.07 on Friday to finish at $489.08, up 0.22 percent. The last five days have seen an average of 659,800 shares of common stock traded. 19 times new highs were reached in the current year, with a gain of $135.47. The average number of shares traded over the last 20 days was 594,265, while the average volume over the last 50 days totaled 565,742.
MPWR stock dropped -8.96% since last month. On 08/25/23, the company’s shares reached a one-month low of $474.47. The stock touched a high of $595.98 on 07/17/23, after rallying from a low of $301.69 in 52 weeks. The price of MPWR stock has risen by 38.31% or $135.47 this year, reaching a new high 19 times. Still, the stock price is down -17.94% from the 52-week high.
Top 5 AI Stocks to Buy for 2023
The artificial intelligence (AI) revolution is already here. And it's about to change everything we know about everything.
According to Grand View Research, the global AI boom could grow from about $137 billion in 2022 to more than $1.81 trillion by 2030. And investors like you always want to get in on the hottest stocks of tomorrow. Here are five of the best ways to profit from the AI boom.
Click Here to Download the FREE Report.
Sponsored
Insider Transactions
MPWR stock investors should be aware that Monolithic Power Systems Inc. (MPWR) stock had its last reported insider trading activity 20 days ago on Aug 08. On Aug 08, CEO Hsing Michael sold 2,836 shares at $530.26 each. This transaction resulted in the insider making $1,503,817. On Aug 08, Tseng Saria sold 874 shares at a price of US$530.27. After the transaction, the insider now owns 257,623 shares. Pres. of MPS Asia Operations Xiao Deming had earlier sold 874 shares on Aug 08 for $530.26 a share. The transaction was completed for $463,447.
Valuation Metrics
Monolithic Power Systems Inc. (MPWR) has a trailing price-to-earnings (P/E) ratio of 52.47. Beta for the stock is 1.16. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 12.62, the price-to-book (PB) ratio of 12.63, and the price-to-cash flow ratio of 76.14.
Company paid $1.00 per share in dividends, remained unchanged from $1.00 last year. A $0.25 dividend increase was reported on Wednesday February 8 2023.
Financial Health
For the three months ended June 29, Monolithic Power Systems Inc.’s quick ratio was 4.80, while its current ratio was 6.50, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 57.70% percent. Monolithic Power Systems Inc.’s EBITDA margin for the year ended June 29 was 31.88%, whereas its operating margin stood at 28.40% for the same period. Based on annual data, it had gross profit of $1.05 billion and revenue of $1.79 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. MPWR’s return on assets (ROA) during the last 12 months has been 21.50%. There was a 26.30% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 26.60%.
Earnings Surprise
According to Monolithic Power Systems Inc.’s quarterly financial report for the quarter that ended June 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $440.68 million, while revenues fell by -4.61% to $451.07 million. It was predicted that Monolithic Power Systems Inc.’s quarterly earnings would be $2.82, but it ended up being $2.8, beating the consensus by 0.70%. EBITDA was $119.59 million for the quarter. At the end of Monolithic Power Systems Inc.’s most recent quarter ended June 29, its liabilities totaled 381.53 million, while its total debt was $6.58 million. Equity owned by shareholders amounts to $47.78 million.
Technical Picture
Here’s a quick look at Monolithic Power Systems Inc.’s (MPWR) price momentum from a technical perspective. As of 25 August, the RSI 9-day stood at 40.00%, suggesting the stock is Neutral, with a 49.16% historical volatility rate.
The stochastic %K and %D were 36.23% and 40.62% respectively, while the average true range (ATR) was 22.99. Based on the 14-day stochastic reading of 24.69%, the RSI (14) reading is 41.76%. On the 9-day MACD Oscillator, the stock is at 1.46, and the 14-day reading is at -6.34.
Analyst Ratings
In its analyst report released on July 20, 2023, Wolfe Research began covering Monolithic Power Systems Inc. (NASDAQ: MPWR). The stock was rated as a Peer perform by the brokerage firm. Analysts have assigned Monolithic Power Systems Inc. (MPWR) an Overweight rating. MPWR is a stock that is recommended for selling by 0 brokerage firms, while 5 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 9 others recommend it as a buy.
What is MPWR’s price target for the next 12 months?
The current consensus forecast for the stock is between $560.00 and $625.00, with a median target price of $575.00. In analyzing these forecasts, the average price target given by analysts for Monolithic Power Systems Inc. (MPWR) is $583.79.
