Diodes (NASDAQ:DIOD) Downgraded by Wall Street Zen to "Hold"

Key Points

• Diodes has been downgraded from a "buy" rating to a "hold" rating by analysts at Wall Street Zen, indicating a potential shift in market sentiment towards the stock.
• Analysts have a consensus rating of "Moderate Buy" for Diodes, with a target price currently set at $55.00.
• The company reported $0.32 earnings per share for the last quarter, surpassing estimates, and its quarterly revenue increased by 14.5% year-over-year.

Diodes (NASDAQ:DIOD - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

Several other analysts have also recently commented on the stock. Benchmark restated a "buy" rating and set a $62.00 price objective (up from $55.00) on shares of Diodes in a research note on Friday, June 13th. Zacks Research upgraded shares of Diodes to a "strong sell" rating in a research note on Friday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $55.00.

Diodes Stock Performance

DIOD stock traded up $0.59 during trading on Friday, reaching $55.90. The company had a trading volume of 335,687 shares, compared to its average volume of 508,766. The firm has a 50-day simple moving average of $53.20 and a 200-day simple moving average of $47.96. The company has a market cap of $2.60 billion, a price-to-earnings ratio of 40.90 and a beta of 1.47. The company has a debt-to-equity ratio of 0.01, a quick ratio of 2.04 and a current ratio of 3.33. Diodes has a twelve month low of $32.93 and a twelve month high of $70.98.

Diodes (NASDAQ:DIOD - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The semiconductor company reported $0.32 EPS for the quarter, beating the consensus estimate of $0.24 by $0.08. Diodes had a net margin of 4.59% and a return on equity of 2.98%. The business had revenue of $366.20 million during the quarter, compared to analysts' expectations of $352.08 million. During the same period in the previous year, the business posted $0.33 EPS. The business's quarterly revenue was up 14.5% compared to the same quarter last year. Diodes has set its Q3 2025 guidance at EPS. As a group, sell-side analysts expect that Diodes will post 1.82 earnings per share for the current year.

Diodes announced that its Board of Directors has approved a stock repurchase program on Thursday, May 8th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the semiconductor company to buy up to 5.4% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's board believes its shares are undervalued.

Institutional Investors Weigh In On Diodes

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC increased its holdings in Diodes by 77.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 470 shares of the semiconductor company's stock worth $25,000 after acquiring an additional 205 shares in the last quarter. MassMutual Private Wealth & Trust FSB increased its holdings in Diodes by 283.1% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 544 shares of the semiconductor company's stock worth $29,000 after acquiring an additional 402 shares in the last quarter. Geneos Wealth Management Inc. purchased a new stake in Diodes in the 2nd quarter worth $30,000. Signaturefd LLC increased its holdings in Diodes by 170.1% in the 1st quarter. Signaturefd LLC now owns 597 shares of the semiconductor company's stock worth $26,000 after acquiring an additional 376 shares in the last quarter. Finally, Fifth Third Bancorp grew its holdings in shares of Diodes by 85.8% during the second quarter. Fifth Third Bancorp now owns 628 shares of the semiconductor company's stock worth $33,000 after buying an additional 290 shares in the last quarter. Hedge funds and other institutional investors own 99.23% of the company's stock.

About Diodes

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.