Diodes (NASDAQ:DIOD) Hits New 52-Week High - Time to Buy?

Key Points

• Shares hit a new 52-week high — DIOD traded as high as $89.14 (last $87.52) on Wednesday with about 461,851 shares changing hands.
• Analyst sentiment is mixed but leaning positive — several upgrades (Truist to Buy with a $98 target, Benchmark to Buy $80, Wall Street Zen to Buy) contrast with a MarketBeat consensus of "Hold" and a $92.67 price target.
• Recent results beat but valuation and insider selling are notable — Q earnings of $0.34 beat estimates and revenue rose 15.4% YoY, yet the stock trades at a P/E of ~61.6 and insiders sold roughly 116,205 shares (~$7.8M) in the past 90 days.

Shares of Diodes Incorporated (NASDAQ:DIOD - Get Free Report) hit a new 52-week high during trading on Wednesday . The company traded as high as $89.14 and last traded at $87.52, with a volume of 461851 shares trading hands. The stock had previously closed at $88.26.

Analyst Ratings Changes

A number of brokerages have commented on DIOD. Truist Financial upgraded Diodes from a "hold" rating to a "buy" rating and lifted their target price for the company from $67.00 to $98.00 in a research note on Monday. Weiss Ratings upgraded Diodes from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, January 21st. Benchmark lifted their target price on Diodes from $62.00 to $80.00 and gave the company a "buy" rating in a research note on Wednesday, February 11th. Wall Street Zen upgraded Diodes from a "hold" rating to a "buy" rating in a research note on Saturday, February 14th. Finally, Zacks Research downgraded Diodes from a "hold" rating to a "strong sell" rating in a research report on Wednesday, February 11th. Three research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $92.67.

Diodes Stock Performance

The company has a quick ratio of 2.08, a current ratio of 3.32 and a debt-to-equity ratio of 0.01. The company has a 50-day moving average price of $68.94 and a 200-day moving average price of $58.02. The firm has a market capitalization of $4.03 billion, a price-to-earnings ratio of 61.63 and a beta of 1.58.

Diodes (NASDAQ:DIOD - Get Free Report) last issued its quarterly earnings data on Tuesday, February 10th. The semiconductor company reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.26 by $0.08. The business had revenue of $391.58 million during the quarter, compared to the consensus estimate of $380.03 million. Diodes had a return on equity of 2.95% and a net margin of 4.46%.The business's revenue was up 15.4% on a year-over-year basis. During the same period in the previous year, the firm posted $0.27 earnings per share. As a group, equities research analysts forecast that Diodes Incorporated will post 1.82 earnings per share for the current year.

Insider Buying and Selling at Diodes

In other news, SVP Emily Yang sold 950 shares of the business's stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $60.85, for a total transaction of $57,807.50. Following the completion of the transaction, the senior vice president directly owned 74,032 shares in the company, valued at approximately $4,504,847.20. The trade was a 1.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Gary Yu sold 2,900 shares of the company's stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $60.85, for a total value of $176,465.00. Following the completion of the sale, the chief executive officer owned 111,671 shares of the company's stock, valued at $6,795,180.35. This trade represents a 2.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 116,205 shares of company stock valued at $7,837,213. 1.70% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Diodes

A number of institutional investors have recently added to or reduced their stakes in DIOD. Salomon & Ludwin LLC acquired a new stake in Diodes in the third quarter worth approximately $25,000. EverSource Wealth Advisors LLC lifted its position in Diodes by 77.4% in the second quarter. EverSource Wealth Advisors LLC now owns 470 shares of the semiconductor company's stock worth $25,000 after purchasing an additional 205 shares during the period. Farther Finance Advisors LLC lifted its position in Diodes by 51.4% in the fourth quarter. Farther Finance Advisors LLC now owns 589 shares of the semiconductor company's stock worth $29,000 after purchasing an additional 200 shares during the period. Geneos Wealth Management Inc. acquired a new stake in Diodes in the second quarter worth approximately $30,000. Finally, MAI Capital Management lifted its position in Diodes by 150.0% in the third quarter. MAI Capital Management now owns 685 shares of the semiconductor company's stock worth $36,000 after purchasing an additional 411 shares during the period. 99.23% of the stock is currently owned by institutional investors and hedge funds.

Diodes Company Profile

Diodes Incorporated NASDAQ: DIOD is a global manufacturer and supplier of high‐performance discrete, logic, analog and mixed‐signal semiconductor products. Headquartered in Plano, Texas, the company designs and develops a broad range of discrete components, standard logic functions, power management circuits, interface products and array products. Its portfolio includes rectifiers, MOSFETs, general‐purpose diodes, voltage regulators, comparators, buffers and other building blocks for electronic systems.

Diodes Incorporated serves a variety of end markets such as automotive, computing, communications, consumer electronics, industrial and lighting.

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