Monolithic Power Systems CFO Sells Shares Worth $4,500,000 Dollars
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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July 11, 2025
11:22 AM
The Motley Fool
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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
The Motley Fool has a disclosure policy.
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