Monolithic Power Systems CEO sells shares worth $2.5 million

Michael Hsing, CEO of Monolithic Power Systems Inc. (NASDAQ:MPWR), recently sold 3,636 shares of common stock at a price of $700 per share, totaling approximately $2.5 million. The sale occurred as the company’s stock trades at significant premium multiples, with InvestingPro data showing a P/E ratio of 69x and the stock down nearly 25% over the past six months. Following this transaction, Hsing holds 854,629 shares directly. Additionally, shares are held indirectly through the M Hsing 04 Trust and the ZH Family 2020 Trust, with 133,040 and 12,825 shares, respectively. The company maintains strong financial health, earning a "GREAT" rating from InvestingPro’s comprehensive analysis, with notable features including robust cash positions exceeding debt levels and consistent dividend payments for 11 consecutive years. Investors can access 15 additional ProTips and detailed financial metrics through InvestingPro’s extensive research platform.

In other recent news, Monolithic Power Systems reported a significant 30% year-over-year increase in third-quarter earnings, hitting a record $620.1 million, largely fueled by gains in the automotive, communication, and storage and compute segments. Amid this positive development, the company has seen various analyst adjustments. Truist Securities revised its price target on the company’s shares to $762 from the previous $887, while maintaining a Buy rating. This adjustment was made in light of potential weaknesses identified in Monolithic Power’s Enterprise Data end market.

Simultaneously, Citi initiated coverage on the company’s stock, assigning a Buy rating and a price target of $700, citing the company’s consistent performance and potential growth in the AI and automotive markets. However, Wells Fargo (NYSE:WFC) assigned an Equal Weight rating to Monolithic Power Systems, setting a price target of $660, reflecting the company’s expected performance in line with the broader market.

In contrast, Needham revised its price target for the company to $600 from $950, maintaining a Buy rating. This adjustment reflects concerns about the company’s share position on NVIDIA (NASDAQ:NVDA)’s Blackwell platform. KeyBanc Capital Markets also adjusted its financial outlook for Monolithic Power Systems, reducing the price target to $700 but maintaining an Overweight rating. These are the recent developments in the company’s market analysis.

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