On July 2, 2025, Theodore Blegen, EVP and CFO, executed an open market sale of 6,000 shares of Monolithic Power Systems(MPWR -0.58%), with a transaction value of $4.5 million.
Transaction summary
| Metric | Value |
|---|---|
| Shares Traded | 6,000 |
| Transaction Value | $4.5 million for an open market or private sale reported on July 2, 2025 |
| Post-Transaction Shares | 46,939 |
| Post-Transaction Value | $34,755,982.55 as of July 2, 2025 |
| Price vs. MA50 | 7.02% above the 50-day moving average as of July 10, 2025 |
| Price vs. MA200 | 9.95% above the 200-day moving average as of July 10, 2025 |
| YTD Performance | (13.27%) 1-year change |
Key questions
How does the trade size compare to the insider's typical activity?
This sale of 6,000 shares is more than three times Theodore Blegen's median trade size of 1,884 shares, based on trading data as of July 2, 2025, and well above the 75th percentile of 2,500 shares, 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?
Following the transaction, Theodore Blegen retains 46,939 shares, representing about 0.10% of outstanding shares, with a post-trade holding value of $34.8 million.
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 overview
| Metric | Value |
|---|---|
| Market capitalization | $35.45 billion |
| Trailing-twelve-month revenue | $2.21 billion |
| Trailing-twelve-month net income | $1.79 billion |
| Dividend yield | 0.84% |
Company snapshot
Designs 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 markets.
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 providers, and value-added resellers globally, with significant presence in Asia, North America, and Europe.
Monolithic Power Systems provides power electronics solutions and DC to DC integrated circuits, specializing in power management solutions for a broad set of end markets. The company offers a diversified product 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 take
Blegen sold some Monolithic Power Systems shares 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 shares in 2024 as part of his compensation and bonus package. These stock sales are a standard monetization process, 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 shares 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.
Glossary
Open 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 shareholder 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 shares: Total shares of a company’s stock currently held by all shareholders, 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 produces parts or equipment used in another company’s end products.
Original design manufacturer (ODM): A company that designs and manufactures products, which are then rebranded and sold by another firm.
Electronic manufacturing service provider: A company that designs, manufactures, tests, and distributes electronic components for other companies.