Monolithic Power (NASDAQ:MPWR) Systems Inc. (NASDAQ:MPWR) has reported a recent sale of company shares by director Herbert Chang Kuo Wei, according to a new SEC filing. The transactions, which took place on May 15, 2024, involved the sale of a total of 200 shares of common stock at prices ranging from $730.00 to $740.00, amounting to a total value of $147,000.
The reported sale by Herbert Chang, who serves on the board of directors, was executed in two separate transactions of 100 shares each. In the first transaction, shares were sold at $730.00 each, and in the second, the shares fetched a slightly higher price of $740.00. Following these transactions, the director's remaining ownership in Monolithic Power Systems stands at 941 shares of common stock.
Monolithic Power Systems, known for its role in the semiconductor and related devices industry, has its business address in Kirkland, Washington, and is incorporated in Delaware. The company's shares are publicly traded on the NASDAQ stock exchange under the ticker symbol MPWR.
Investors typically monitor insider transactions such as these for insights into the sentiment of high-level executives and directors regarding the stock's future performance. However, such transactions are not necessarily indicative of future stock movement and can be influenced by a variety of personal financial considerations.
The SEC filing was signed by Saria Tseng, attorney-in-fact for Mr. Herbert Chang, confirming the completion of the reported transactions.
InvestingPro Insights
Monolithic Power Systems Inc. (NASDAQ:MPWR) has been a notable player in the semiconductor industry, and recent transactions by a company director have drawn attention to the stock. In light of these developments, InvestingPro offers valuable insights into the company's performance metrics and analyst expectations that may be of interest to investors.
As per InvestingPro Data, Monolithic Power Systems boasts a substantial market capitalization of $36.08 billion, reflecting its significant presence in the market. However, the company is trading at a high earnings multiple, with a P/E ratio of 85.84 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 86.74. This suggests a premium valuation compared to the industry average, which could be a point of consideration for value-oriented investors.
The company's revenue for the last twelve months as of Q1 2024 stands at $1827.89 million, with a slight decrease in revenue growth of -2.12%. Despite this, the company has maintained a strong gross profit margin of 55.52% during the same period, indicating efficient management of production costs and profitability.
Two InvestingPro Tips that stand out for Monolithic Power Systems are the company's consistent dividend growth, having raised its dividend for 6 consecutive years, and the fact that 13 analysts have revised their earnings estimates upwards for the upcoming period. These tips suggest a positive outlook on the company's financial health and potential for future earnings growth.
For investors seeking more in-depth analysis, there are additional tips available on InvestingPro. Currently, there are 18 more InvestingPro Tips that can be accessed, providing a comprehensive view of Monolithic Power Systems' financial metrics and market positioning. Interested investors can explore these tips and take advantage of the exclusive offer by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With the next earnings date set for July 29, 2024, investors will be keenly watching how the company's financials align with analyst expectations and market trends. The insights provided by InvestingPro could be instrumental in making informed investment decisions regarding Monolithic Power Systems.
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