Diodes Incorporated (NASDAQ:DIOD) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Diodes Incorporated has received a consensus rating of "Moderate Buy" from five brokerages, with an average 12-month price target of $55.00.
• The company's recent earnings report showed an EPS of $0.32, exceeding estimates, and a revenue increase of 14.5% year-over-year.
• Diodes has authorized a $100 million stock buyback program, indicating management's belief that the stock is undervalued.

Diodes Incorporated (NASDAQ:DIOD - Get Free Report) has received a consensus rating of "Moderate Buy" from the five ratings firms that are presently covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating, two have given a buy rating and one has given a strong buy rating to the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $55.00.

Several research analysts have recently issued reports on the company. Benchmark reaffirmed a "buy" rating and issued a $62.00 price objective (up previously from $55.00) on shares of Diodes in a research note on Friday, June 13th. Wall Street Zen raised Diodes from a "hold" rating to a "buy" rating in a research note on Sunday, August 3rd. Finally, Zacks Research raised shares of Diodes to a "strong sell" rating in a research report on Friday, August 8th.

Hedge Funds Weigh In On Diodes

Several large investors have recently bought and sold shares of the stock. Dimensional Fund Advisors LP increased its position in shares of Diodes by 8.1% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,238,567 shares of the semiconductor company's stock valued at $138,053,000 after buying an additional 168,545 shares during the period. Earnest Partners LLC lifted its stake in Diodes by 0.4% in the fourth quarter. Earnest Partners LLC now owns 2,119,097 shares of the semiconductor company's stock worth $130,685,000 after acquiring an additional 7,552 shares during the period. Hood River Capital Management LLC bought a new position in Diodes in the fourth quarter worth $72,037,000. Global Alpha Capital Management Ltd. increased its holdings in shares of Diodes by 56.9% during the second quarter. Global Alpha Capital Management Ltd. now owns 846,070 shares of the semiconductor company's stock valued at $44,749,000 after acquiring an additional 306,900 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. increased its holdings in shares of Diodes by 5.3% during the first quarter. Charles Schwab Investment Management Inc. now owns 723,733 shares of the semiconductor company's stock valued at $31,244,000 after acquiring an additional 36,488 shares in the last quarter. 99.23% of the stock is currently owned by institutional investors.

Diodes Price Performance

NASDAQ DIOD opened at $53.92 on Friday. The company has a quick ratio of 2.04, a current ratio of 3.33 and a debt-to-equity ratio of 0.01. Diodes has a 12-month low of $32.93 and a 12-month high of $72.76. The company has a market capitalization of $2.50 billion, a PE ratio of 39.36 and a beta of 1.47. The firm's 50 day moving average is $52.65 and its 200-day moving average is $48.22.

Diodes (NASDAQ:DIOD - Get Free Report) last announced its earnings results on Thursday, August 7th. The semiconductor company reported $0.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.24 by $0.08. The company had revenue of $366.20 million during the quarter, compared to analysts' expectations of $352.08 million. Diodes had a net margin of 4.59% and a return on equity of 2.98%. Diodes's quarterly revenue was up 14.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.33 earnings per share. Equities research analysts anticipate that Diodes will post 1.82 earnings per share for the current fiscal year.

Diodes declared that its board has authorized a stock buyback program on Thursday, May 8th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the semiconductor company to reacquire up to 5.4% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

Diodes Company Profile

Diodes Incorporated, together with its subsidiaries, manufactures and supplies application-specific standard products in the broad discrete, logic, analog, and mixed-signal semiconductor markets worldwide. The company offers discrete semiconductor products, such as MOSFETs, SiC MOSFETs; data line protection, power line protection, thyristers, USB Type-C protection, and transient voltage suppressors; Schottky, small signal switching, Zener, and SiC diodes; bridges, super barrier, Schottky, Schottky bridge, and fast/ultra-fast rectifiers; and bipolar, avalanche, gate driver, and pre-bias transistors.

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