Insider Selling Amid a Bullish Trend
On February 9, 2026, Monolithic Power Systems’ owner Lee Victor K sold 400 shares of common stock at a price of $1,212.16, a move executed under a Rule 10b‑5‑1 trading plan dated August 2025. The sale lowered his holdings to 27,756 shares, roughly 0.05 % of the outstanding float. While the transaction is modest compared to the company’s 58‑million‑share market cap, the timing—just as the stock surged 5.3 % for the week and 23.7 % for the month—raises questions about insider confidence in the near‑term upside.
What the Trade Signals to Investors
A single 400‑share sale under a pre‑approved plan is typically considered routine, yet the context matters. The trade followed a string of aggressive buying by senior executives: EVP and CFO Theodore Blegen sold large blocks in December 2025, while CEO Hsing Michael and EVP Xiao Deming executed significant sells in February. The cluster of selling among top management suggests a broader liquidity strategy rather than a pessimistic outlook on the business. Moreover, Monolithic’s fundamentals—70.96 % YTD price gain, a 94.64 P/E ratio, and a recent dividend hike—point to continued investor optimism. Analysts at Wells Fargo have lifted their price targets, reinforcing a bullish view despite the insider sells.
Lee Victor K: A Pattern of Opportunistic Trading
Lee’s transaction history shows a pattern of opportunistic buying and selling around quarterly earnings and product‑launch windows. In early February 2026 he purchased 189 shares, only to sell 400 shares later that month. In December 2025 he sold multiple blocks ranging from 80 to 280 shares at prices between $949.70 and $955.08, timing the sales close to a 3‑month earnings report. The owner’s trades appear aligned with a disciplined 10b‑5‑1 plan, indicating a focus on tax efficiency and liquidity management rather than market sentiment. Historically, his net position has trended downward, suggesting a gradual divestiture of his stake in the company.
Implications for the Future
For shareholders, the insider activity signals that senior management and significant owners are actively managing their positions without signaling a loss of faith in Monolithic’s long‑term trajectory. The current sell order is unlikely to impact the stock’s price trajectory, especially given the company’s solid earnings guidance, dividend increase, and a market that remains bullish on power‑management semiconductors. Investors should monitor the next quarter’s earnings release and product roadmap for any shift in the insider behavior pattern, but at present the insider transactions appear routine and not a harbinger of downside risk.
| Date | Owner | Transaction Type | Shares | Price per Share | Security |
|---|---|---|---|---|---|
| 2026-02-09 | Lee Victor K () | Sell | 400.00 | 1,212.16 | Common Stock |
