Monolithic CFO’s Rule‑10b5‑1 Sales Signal Confidence, Not Concern, Amid Strong Stock Run

Insider Selling on a Strong Day: What Monolithic Power Systems’ CFO’s Moves Mean for Investors

On February 2 2026, Monolithic Power Systems’ Executive Vice President and Chief Financial Officer, Blegen Theodore, executed a series of 12 Rule 10b5‑1 trades totaling 1,500 shares at an average price of $1,128. The transactions were dispersed over the course of the day, with the first sale occurring at $1,110.58 and the final at $1,131.91. The company’s stock closed that day at $1,164.83, up 1.9 % from the previous session and 23.9 % year‑to‑date. The CFO’s trading activity coincided with a modest 0.03 % price rise and a 182 % surge in social‑media buzz, indicating that investors were paying close attention to the insider flow.

Why a 10b5‑1 Plan Matters

A Rule 10b5‑1 plan allows insiders to schedule sales regardless of any private information they might possess, thereby mitigating the risk of insider‑trading violations. However, the public still views any sale as a signal that the insider believes the current valuation is attractive. In this case, Theodore’s plan was executed against a backdrop of strong fundamentals—Monolithic’s price‑earnings ratio of 31.3, a 79 % yearly upside, and robust demand from automotive and AI markets. The modest sale volume (1,500 shares) relative to the CFO’s overall holdings (≈ 66,000 shares post‑trade) suggests a routine, risk‑controlled transaction rather than a sudden confidence shift.

Implications for Investors

1. Signal of Confidence, Not a Warning – Theodore’s disciplined approach, combined with the company’s solid earnings prospects, implies that the CFO is comfortable with the current trajectory. For long‑term investors, this can be interpreted as a green light to hold or even add shares, especially given the steady 23.9 % YTD gain.
2. Liquidity Considerations – The sale volume is small compared to the company’s average daily volume (~ 6 million shares). Short‑term price impact is likely negligible. Nonetheless, a slight dip might occur if the market interprets the sale as a “take‑profit” signal during a rally.
3. Watch for Timing – The sales were executed early in the trading day, a common window for insiders to avoid front‑loading market sentiment. Future 10b5‑1 sales that cluster near earnings announcements or product launches could warrant closer scrutiny.

Blegen Theodore: A Profile of Consistency

Theodore has sold shares consistently over the past year, with notable clusters in early November 2025 and early December 2025. His average selling price has trended upward from ~$900 in November to ~$1,100 in February, mirroring the company’s overall price appreciation. He typically sells in increments of 40 to 2,000 shares, never exceeding 10 % of his holdings in a single trade. This pattern aligns with a disciplined, rules‑based approach rather than opportunistic dumping. Compared to peers, Theodore’s selling frequency is moderate; other senior executives (e.g., EVP & General Counsel Tseng Saria) have also used Rule 10b5‑1 plans but in larger blocks during late‑year periods.

Looking Ahead

Monolithic Power Systems remains positioned at the intersection of high‑margin power‑electronics demand and growing semiconductor adoption. The CFO’s recent Rule 10b5‑1 sales, executed during a strong price run, reinforce the narrative of a company on a sustainable growth path. For investors, the key takeaway is that insider selling here is a routine exercise of a pre‑planned strategy, not a harbinger of distress. The company’s fundamentals—high market cap, solid P/E, and expanding product pipeline—continue to support a bullish outlook, while the CFO’s disciplined trading signals a measured confidence in the firm’s trajectory.