Heaving Buying Triggers RSI Cross (MPWR) Thursday, December 8, 12:48 PM ET, by Market News Video Staff In trading on Thursday, shares of Monolithic Power Systems Inc (MPWR) entered into overbought territory, ...
See How Monolithic Power Systems Ranks Among Analysts' Top Picks With Strong Buyback Activity
By Market News Video Staff, Tuesday, September 4, 2:19 PM ET
A study of analyst recommendations at the major brokerages shows that Monolithic Power Systems Inc (NASDAQ:MPWR) is the #38 broker analyst pick among those stocks screened by The Online Investor for strong stock buyback activity. To make that list, a stock must have repurchased at least 5% of its outstanding shares over the trailing twelve month period. In forming the rank, the analyst opinions from the major brokerage houses were tallied, and averaged; then, the list of stocks with strong buyback activity was ranked according to those averages.
Investors are often keenly interested in knowing which companies are buying back their own stock, because companies often will only make such a move if they feel their stock is undervalued. Monolithic Power Systems Inc is a company with strong buyback activity that is also considered a compelling buy by analysts; a bullish investor could take this to mean that sharp analyst minds came to the same bullish conclusion as the company itself that the stock is a good value, and therefore the stock should do well in the future.
Analysts studying companies buying back their own stock will also factor into their analysis that future earnings will now be spread over a smaller share count, thereby increasing the per-share earnings the remaining shares will enjoy, versus what that same number would have been absent the stock buyback activity.
MPWR operates in the Semiconductors sector, among companies like Intel Corp (INTC) which is off about 1.9% today, and Taiwan Semiconductor Manufacturing Co., Ltd. (TSM) trading lower by about 2.3%. Below is a three month price history chart comparing the stock performance of MPWR, versus INTC and TSM.
MPWR is currently trading off about 7.5% midday Tuesday.
This Article's Word Cloud:FinderINTCMPWRMonolithicPowerSemiconductorsSystemsTuesdayaboutactivityalsoamonganalystaveragesbackbullishbuybackbuyingcompaniescompanycountearningsfeelfuturehavelistlowermajormakemonthoftenotheroverrankedsamesharesharesstockstocksstrongthattheirthosetradingundervaluedversuswhatwhichwillwith
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.