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Monolithic Power Systems CFO Sells Shares Worth $4,500,000 Dollars

July 11, 2025
11:22 AM
5 min read
AI Enhanced
financestockstradingfinancialtechnologysemiconductorsmarket cyclesseasonal analysis

Key Takeaways

On July 2, 2025, Theodore Blegen, EVP and CFO, executed an open market sale of 6,000 s of Monolithic Power Systems(MPWR -0. 63%), with a transaction value of $4. Transaction...

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5 min read

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investment

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Published

July 11, 2025

11:22 AM

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The Motley Fool

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Key Topics
financestockstradingfinancialtechnologysemiconductorsmarket cyclesseasonal analysis

On July 2, 2025, Theodore Blegen, EVP and CFO, executed an open market sale of 6,000 s of Monolithic Power Systems(MPWR -0. 63%), with a transaction value of $4

Transaction summaryMetricValues Traded6,000Transaction Value$4. 5 million for an open market or private sale reported on July 2, 2025Post-Transaction s46,939Post-Transaction Value$34,755,982. 55 as of July 2, 2025Price vs. 02% above the 50-day moving average as of July 10, 2025Price vs. 95% above the 200-day moving average as of July 10, 2025YTD Performance(13. 27%) 1-year changeKey questionsHow does the trade size compare to the insider's typical activity

This sale of 6,000 s is more than three times Theodore Blegen's median trade size of 1,884 s, based on trading data as of July 2, 2025, and well above the 75th percentile of 2,500 s, indicating an unusually large transaction relative to the insider's historical pattern

What is the significance of the transaction in the context of recent price performance

The trade was executed at a price 7. 02% above the 50-day moving average as of July 10, 2025, and 9. 95% above the 200-day moving average as of July 10, 2025, during a period when the stock is down 13. 27% year-to-date (as of July 10, 2025)

What is the impact on insider ownership

Ing the transaction, Theodore Blegen retains 46,939 s, representing 0. 10% of outstanding s, with a post-trade holding value of $34

How does the timing fit within the insider's trading frequency

This is Blegen's first reported trade in 140 days, compared to a historical average of 14. 8 trades per year, suggesting a lower-than-usual trading cadence in recent months

Company overviewMetricValueMarket capitalization$35. 45 billionTrailing-twelve-month revenue$2. 21 billionTrailing-twelve-month net income$1. 79 billionDividend yield0. 84%Company snapshotDesigns and sells semiconductor-based power electronics solutions, including DC to DC integrated circuits and lighting control ICs, serving computing, automotive, industrial, communications, and consumer electronics

Generates revenue primarily through direct sales and third-party distributors, focusing on power electronics solutions for voltage conversion and power management applications

Main customers include original equipment manufacturers, original design manufacturers, electronic manufacturing service viders, and value-added resellers globally, with significant presence in Asia, North America, and Europe

Monolithic Power Systems vides power electronics solutions and DC to DC integrated circuits, specializing in power management solutions for a broad set of end

The company offers a diversified duct portfolio to address complex power conversion needs in advanced electronics

Its global customer base and focus on innovation reinforce its presence in the semiconductor industry

Foolish takeBlegen sold some Monolithic Power Systems s every month in 2024, but paused the sale plan in February, 2025

July's extra-large transaction made up for lost time, bringing Blegen's automated sales back to the usual long-term averages

The selling pause aligns with a sharp price drop in Monolithic Power Systems' stock last November

Blegen seems to take advantage of short-term price changes, maximizing the value of these stock sales over time

The CFO added 6. 657 million Monolithic Power Systems s in 2024 as part of his compensation and bonus package

These stock sales are a standard monetization cess, often employed by insiders and directors of public companies with significant stock-based compensation plans

In other words, there's no reason to interpret Blegen's large sale as a sign of trouble with the company or its finances

Monolithic Power Systems has surpassed analysts' consensus targets across the board for more than three years, including a large revenue surprise in the November report that brought the stock price down

The price drop stemmed from a modest set of guidance targets

Then, the company reported results on the high end of its modest performance targets

The CFO's paused stock sales make a lot of sense in this situation, as Monolithic Power Systems s often looked undervalued in the first half of 2025

Even now, after a 24% price increase year-to-date, the stock looks reasonably valued at 19. 5 times earnings

GlossaryOpen market sale: The sale of securities on a public exchange, available to any buyer at prevailing market prices

Insider: A company executive, director, or major holder with access to non-public company information

EVP: Executive Vice President, a senior management position just below the top executive level

CFO: Chief Financial Officer, the executive responsible for managing a company’s financial actions. 50-day moving average (MA50): The average closing price of a security over the past 50 trading days, used to analyze trends. 200-day moving average (MA200): The average closing price over the past 200 trading days, often used to assess long-term trends

YTD Performance: Year-to-date performance, measuring a security’s return from the start of the calendar year to the present date

Outstanding s: Total s of a company’s stock currently held by all holders, including insiders and the public

Trading cadence: The frequency or pattern of an insider’s trading activity over a period

Original equipment manufacturer (OEM): A company that duces parts or equipment used in another company’s end ducts

Original design manufacturer (ODM): A company that designs and manufactures ducts, which are then rebranded and sold by another firm

Electronic manufacturing service vider: A company that designs, manufactures, tests, and distributes electronic components for other companies

Anders Bylund has no position in any of the stocks mentioned

The Motley Fool recommends Monolithic Power Systems

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