MPS Executives Trade Big—Xiao Deming Sells $1.17M Amid CEO’s 54,923‑Share Flip, Raising Questions About Management’s Confidence in the Semiconductor‑Cycle Turnaround.

Insider Selling by Xiao Deming Signals a Strategic Shift at Monolithic Power Systems

Monolithic Power Systems (MPS) has seen a flurry of insider activity in the past weeks, with EVP and Global Operations Xiao Deming executing a significant sale of 22,875 shares on 6 Feb 2026. The transaction, valued at roughly $1.17 million, occurs against a backdrop of a marginally lower share price and a strong positive social‑media sentiment (+98). While the price dip is negligible, the timing of the sale—just after a large buy by the company’s CEO and several other EVP‑level executives—raises questions about management’s confidence in the near‑term trajectory.

What Does the Sale Mean for Investors?

Xiao Deming’s divestiture comes after a series of mixed actions: a 57,170‑share purchase earlier that day, a 54,543‑share sale in October, and several smaller transactions throughout 2025. The net effect is a reduction of his holdings from 258,807 to 235,932 shares. Given that insider holdings of roughly 6 % of outstanding shares can be a barometer of management sentiment, a modest sell‑off may be interpreted as a tactical rebalancing rather than a sign of declining confidence. However, the concentration of sales among senior executives—Tseng, Sciammas, and the CFO—all made substantial sales on the same day, suggests a broader shift in portfolio strategy, perhaps to fund future capital‑intensive projects or to meet liquidity needs amid a volatile semiconductor cycle.

Xiao Deming’s Transaction History: A Profile

Over the past 18 months, Xiao has alternated between large purchases and sales, often in the 50–100 k share range. His most recent purchase (57,170 shares) immediately preceded the sale, hinting at a “buy‑sell‑buy” cycle that may reflect market timing or a response to internal milestones (e.g., product launches or earnings releases). Historically, his transactions have coincided with periods of stock price volatility: the October 2025 sale occurred just after a sharp 10 % dip, while the 2026 sale follows a 1.9 % weekly decline. This pattern suggests that Xiao may be using insider trades to capitalize on short‑term price movements rather than long‑term valuation shifts. For investors, this indicates that while insider activity is notable, it may not be a reliable predictor of long‑term performance.

Broader Insider Context

The simultaneous selling spree by other senior leaders—especially the CEO’s 54,923‑share sale—raises the possibility of a coordinated liquidity event or an internal restructuring. The company’s fundamentals remain robust: a 63 % year‑to‑date gain, a high 52‑week range, and a bullish analyst stance from Wells Fargo. Coupled with an announced dividend increase, MPS appears well‑positioned to weather short‑term volatility. Yet the heavy insider selling could erode some confidence in the management team’s long‑term commitment.

Bottom Line for Investors

For long‑term holders, the insider transactions—though sizable—do not appear to undermine the company’s solid fundamentals or growth prospects. The recent sale by Xiao Deming and peers likely reflects portfolio rebalancing in a dynamic industry rather than an impending downturn. Nonetheless, investors should monitor subsequent insider activity and any corporate announcements (e.g., capital expenditures or new product lines) that may provide further context to these transactions.