What Happened?
Shares of power management chips maker Monolithic Power Systems (NASDAQ: MPWR) fell 2.9% in the afternoon session after a top executive, Saria Tseng, sold more than $17 million worth of company shares. According to regulatory filings, Saria Tseng, the company's EVP & General Counsel, sold 16,840 shares across transactions on October 15 and 16. The total value of the shares sold was approximately $17.1 million. Such a large sale by a high-ranking insider can sometimes cause concern among investors about a stock's valuation, even though the transactions were conducted under a pre-arranged trading plan. Following the sale, Tseng still directly owned 127,654 shares of the company.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Monolithic Power Systems? Access our full analysis report here.
What Is The Market Telling Us
Monolithic Power Systems’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 2.6% as it received positive attention from analysts, including an upgrade from Wolfe Research and a significant price target increase from Oppenheimer. The upgrade came from Wolfe Research, which changed its rating on the stock from "hold" to "strong-buy." In a separate move, Oppenheimer raised its price target on the company to $1,200 from $800, while maintaining an "Outperform" rating. This optimism followed strong recent performance, with KeyBanc Capital Markets highlighting the company's substantial market share gains in Nvidia's Blackwell Ultra AI chips. The company also recently reported record quarterly revenue that surpassed forecasts.
Monolithic Power Systems is up 68% since the beginning of the year, and at $998.00 per share, it is trading close to its 52-week high of $1,027 from October 2025. Investors who bought $1,000 worth of Monolithic Power Systems’s shares 5 years ago would now be looking at an investment worth $3,195.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
