Deming Xiao, Executive Vice President of Global Operations at Monolithic Power Systems Inc (NASDAQ:MPWR), executed a sale of 22,875 shares of the company’s common stock on February 6, 2026. The shares were disposed of at $1,171.16 per share, representing a total transaction value of $26,790,369.
The disposition took place near MPWR's 52-week peak of $1,250. At the time of the report the stock was trading at $1,142.02, a level described as slightly above its InvestingPro Fair Value assessment.
Following the sale, Xiao retains substantial ownership in the company. He directly holds 235,932 shares of Monolithic Power Systems. In addition, indirect holdings include 20,455 shares held by his spouse and 4,336 shares held by the Christopher Chao Xiao Trust. Those aggregated holdings leave Xiao with a material stake in the semiconductor company.
Monolithic Power Systems has a market capitalization of $55.69 billion and has delivered strong equity returns, rising 64.73% over the past 12 months.
Reason for sale
The sale was described as a tax-covering transaction linked to the release of restricted stock units, carried out under the provisions of the company’s equity incentive plan. According to the filing, the disposition was executed to satisfy tax obligations triggered by vested awards rather than as a routine open-market divestiture.
Company financials and analyst reactions
Monolithic Power Systems reported fourth-quarter 2025 results that modestly outpaced consensus. The company recorded earnings per share of $4.79, above the forecasted $4.73. Revenue for the quarter reached a record $751.2 million, topping the anticipated $740.23 million.
Following those results, several brokerage firms adjusted their price targets and maintained favorable coverage. KeyBanc raised its target to $1,500 and kept an Overweight rating. TD Cowen increased its target to $1,350, citing a positive outlook for Enterprise Data growth. Needham also nudged its target to $1,300 and maintained a Buy rating, noting solid execution and an improved Enterprise Data outlook. These actions were characterized in the filing as reflecting positive analyst sentiment toward the company’s prospects.
Balance sheet and investor resources
InvestingPro assigns Monolithic Power Systems a "GREAT" overall health score. The platform highlights that the company has raised its dividend for eight consecutive years and lists more than 14 additional ProTips. The firm’s Pro Research Report for MPWR is included among the 1,400-plus U.S. equities covered on the InvestingPro platform.
Takeaway
The insider sale by a senior operations executive was executed for tax purposes tied to vested equity and does not change the substantial ownership he maintains. Concurrently, Monolithic Power Systems’ most recent quarter delivered record revenue and a slight EPS beat, prompting several analysts to increase price targets and signal continued optimism in the firm’s trajectory.