Weekly Recap | Monolithic Power +5.29%, closing in on record highs

The Week

Monolithic Power (MPWR) rose 5.29% this week to close at $1,439.73, outperforming the S&P 500 by about 5.56 percentage points as the benchmark fell 0.27%. From Monday through Thursday the stock held a narrow range between $1,320.80 and $1,374.32. On Friday, Oct 2, it broke higher, opening at $1,406.00 and touching $1,455.99 intraday before settling at $1,439.73. Weekly amplitude was 9.99%, while average daily volume of about 554,765 shares ran roughly 20% below the 60-day median.

Key Events

Two themes dominated this week: the GLOBALFOUNDRIES deal and a CEO stock sale. On Oct 1, CEO Michael Hsing disposed of about $39.23 million in common shares. A day earlier, one analyst note said the stock could be 27% undervalued following the GLOBALFOUNDRIES transaction. On Friday, the stock outperformed competitors on a strong trading day, climbing nearly 6% intraday and finishing up 5.25%. After-hours and pre-market sessions also logged gains of 3.10% and 3.24%.

Analyst Ratings

Among 17 institutions covering the stock, 13 rate it buy, 3 rate it overweight and 1 has a hold; none assign underweight or sell. The consensus recommendation is strong buy, with a consensus target of $1,839.80, about 27.79% above the current price. Targets range from $1,575 to $2,100, a relatively tight spread. Within the semiconductor industry group of 78 names, the stock ranks 21st by rating.

The Week Ahead

Several US macro releases land next week. On Monday, Oct 5, the S&P Global services PMI final print and ISM non-manufacturing PMI are due, with prior readings of 58.7 and 55.4. Tuesday, Oct 6, brings the international trade balance, previously -$88.6 with a forecast of -$102. Wednesday, Oct 7, sees EIA weekly crude and Cushing inventory data.

In Short

The stock rallied on volume toward record highs while ratings skew heavily toward buy or overweight, with the consensus target above spot. At the same time, the latest session’s flow data shows small and medium orders as net buyers while large orders turned net sellers. The next leg likely hinges on further news around the GLOBALFOUNDRIES deal and how macro data ripples through semiconductor sentiment.

This article is generated by LongbridgeAI from market data, for information only and not investment advice.