Wall Street Zen Downgrades Diodes (NASDAQ:DIOD) 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 research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday.

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

Diodes Trading Up 0.2%

Shares of Diodes stock traded up $0.10 during trading hours on Friday, reaching $56.29. 31,121 shares of the company's stock were exchanged, compared to its average volume of 506,937. Diodes has a 52-week low of $32.93 and a 52-week high of $70.98. The company has a fifty day moving average of $53.32 and a 200-day moving average of $48.02. The company has a current ratio of 3.33, a quick ratio of 2.04 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $2.61 billion, a price-to-earnings ratio of 41.28 and a beta of 1.47.

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

Diodes announced that its board has authorized a stock repurchase 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 buy up to 5.4% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

Institutional Investors Weigh In On Diodes

Several institutional investors and hedge funds have recently bought and sold shares of DIOD. EverSource Wealth Advisors LLC raised its stake in Diodes by 77.4% during the second quarter. EverSource Wealth Advisors LLC now owns 470 shares of the semiconductor company's stock worth $25,000 after acquiring an additional 205 shares during the period. Signaturefd LLC raised its stake in Diodes by 170.1% during the first quarter. Signaturefd LLC now owns 597 shares of the semiconductor company's stock worth $26,000 after acquiring an additional 376 shares during the period. MassMutual Private Wealth & Trust FSB raised its stake in Diodes by 283.1% during the second 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 during the period. Geneos Wealth Management Inc. acquired a new stake in Diodes during the second quarter worth about $30,000. Finally, Fifth Third Bancorp raised its stake in 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 acquiring an additional 290 shares during the period. Institutional investors and hedge funds 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.