Shares of Monolithic Power Systems fell 1.9% to $1,206.09 during Monday's trading session, pulling back from recent highs. The decline follows a substantial rally last week driven by better-than-expected financial results.
Strong Quarterly Performance
The semiconductor company reported fourth-quarter revenue of $751.2 million, representing year-over-year growth of 20.8%. Adjusted net income reached $235.3 million, or $4.79 per diluted share. CEO Michael Hsing highlighted the company's ongoing transformation from a chip supplier to a comprehensive silicon solutions provider.
Dividend Increase and Leadership Transition
Monolithic announced a significant dividend hike, raising its quarterly payout to $2.00 per share from $1.56 previously. Shareholders of record as of March 31 will receive the payment on April 15. The company also revealed that CFO Bernie Blegen plans to retire following the release of the 2025 Form 10-K annual report. Corporate controller Rob Dean will serve as interim CFO during the transition.
Analysts have responded positively to the results, with Needham analyst N. Quinn Bolton raising his price target to $1,300 according to GuruFocus data. Meanwhile, chip sector peers showed mixed performance, with Texas Instruments edging lower while Analog Devices and NXP Semiconductors posted modest gains.
Investors are now monitoring several upcoming events, including the March 31 dividend record date and the timing of the 2025 annual report filing, which will trigger the CFO transition. The stock's recent volatility reflects both optimism about the company's fundamentals and concerns about its elevated valuation following the substantial price appreciation.
