Monolithic Power Systems Inc. (MPWR): Priced Right For Long-Term Investors

Monolithic Power Systems Inc.’s stock (NASDAQ:MPWR) has been rated as Outperform by Cowen. This latest rating was contained in a recent research note published by the firm on April 29, 2020 and has set a $215 price target for the stock. Some experts on Wall Street have also posted a report on Monolithic Power Systems Inc. (MPWR) stock.

Needham rated the stock as a Buy in a research noted published on March 31, 2020. Needham rated the stock as a Buy in a research note published on March 05, 2020.

As it stands, a total of 12 analysts are covering MPWR stock, with 9 of them rating it as a Buy while 1 of them rating it as Overweight. 1 analysts meanwhile advised investors to Hold, 1 rated it as Underweight while the 0 rated it as a Sell. A look at the overall ratings means that Monolithic Power Systems Inc. (MPWR) stock has an average rating of Overweight.

The stock market has a tendency to become sophisticated sometimes, even for seasoned investors and traders. Even when a trader got what he/she had expected, the market sometimes decides to move in the opposite direction. This volatility sometimes leads to some traders doubting and second-guessing their moves. This is why getting to know historical price performance, as well as both long-term and short-term trends, is very important. Over the past one week, MPWR price has dropped by -3.67%. A look at its price performance over the past three months sees the stock go up by 7.65%, while it has gain 24.19% over the past six months and 66.44% since the start of the year.

Let us now look at some of its likely support and resistance level. Recent research on Monolithic Power Systems Inc. (MPWR) has seen its stock trading -8.09% below its three-month high price. A look at the other side also sees stock trading +55.10% above its three-month low. A wider look sees MPWR trading -8.09% below its 52-week high and 75.73% above from its 52-week low price.

Shareholders of the company sometimes like to find out how their investments are growing. Monolithic Power Systems Inc. (MPWR) has so far given an ROE of 15.70%. When the ROE is low, it means that the company isn’t generating enough profits. The Return on Assets (ROA) ratio meanwhile is an indication of how profitable a company is relative to the total asset it owns. Monolithic Power Systems Inc. (MPWR)’s ROA at the moment stands at 12.60%. Any company that is managing its assets better will have a higher return while one that manages assets poorly would result in low returns.

Monolithic Power Systems Inc. (MPWR) has a return on investment (ROI) of 13.00%. The higher the ROI percentage, the higher the profit exceeds the costs, thus analysts consider such investments as an overall gain. A negative ROI, however, means that the cost is higher than the profits, a scenario analysts consider as a net loss.

Let us now take a look at Monolithic Power Systems Inc. (MPWR)’s trading volatility. Its 7-day volatility is around 4.82%, while it has a monthly volatility of 4.31%. MPWR has an ATR (Average True Range) of 9.53 and a beta factor of 1.24. The volatility of a stock is an indication of the stock’s drop or gain in case the wider market drops or surges. A beta score higher than 1 means that a stock is highly volatile while below 1 means that the volatility of a stock is low.

The price of MPWR moved down by -$3.01 during the normal trading session on Tuesday to trade at $201.81. The Monolithic Power Systems Inc. (MPWR) stock has a trading volume of 0.31 million shares, which is low, compared to its average daily volume of 420.31K shares.