Diodes (NASDAQ:DIOD) Stock Price Down 3.8% - Should You Sell?

Key Points

• Diodes Incorporated's shares fell by 3.8%, trading at $54.39 after closing at $56.55, with trading volume down 85% from the average.
• Analyst ratings for Diodes vary, with one "Strong Buy," two "Buy," one "Hold," and one "Sell," while the average target price is $55.00.
• The semiconductor company reported $0.32 earnings per share for the last quarter, exceeding estimates, while revenue increased 14.5% year-over-year.

Diodes Incorporated (NASDAQ:DIOD - Get Free Report) shares fell 3.8% on Friday . The stock traded as low as $54.61 and last traded at $54.39. 76,094 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 502,497 shares. The stock had previously closed at $56.55.

Wall Street Analyst Weigh In

DIOD has been the subject of several research reports. Zacks Research upgraded shares of Diodes to a "strong sell" rating in a research note on Friday, August 8th. Wall Street Zen upgraded shares of Diodes from a "hold" rating to a "buy" rating in a research note on Sunday, August 31st. Finally, Benchmark reissued a "buy" rating and set a $62.00 target price (up previously from $55.00) on shares of Diodes in a report on Friday, June 13th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $55.00.

Diodes Stock Down 4.6%

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 company has a market capitalization of $2.50 billion, a price-to-earnings ratio of 39.37 and a beta of 1.54. The firm's fifty day simple moving average is $53.09 and its two-hundred day simple moving average is $48.12.

Diodes (NASDAQ:DIOD - Get Free Report) last released its quarterly 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 business had revenue of $366.20 million for the quarter, compared to the consensus estimate of $352.08 million. Diodes had a net margin of 4.59% and a return on equity of 2.98%. The business's revenue was up 14.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.33 EPS. Diodes has set its Q3 2025 guidance at EPS. Sell-side analysts anticipate that Diodes Incorporated will post 1.82 EPS for the current year.

Insiders Place Their Bets

In related news, SVP Emily Yang sold 1,000 shares of the stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $56.36, for a total transaction of $56,360.00. Following the completion of the sale, the senior vice president owned 59,479 shares in the company, valued at $3,352,236.44. This represents a 1.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Brett R. Whitmire sold 2,000 shares of the firm's stock in a transaction on Wednesday, August 27th. The stock was sold at an average price of $55.90, for a total transaction of $111,800.00. Following the completion of the sale, the chief financial officer owned 48,777 shares of the company's stock, valued at $2,726,634.30. This trade represents a 3.94% decrease in their position. The disclosure for this sale can be found here. Company insiders own 2.30% of the company's stock.

Hedge Funds Weigh In On Diodes

A number of institutional investors have recently modified their holdings of DIOD. Global Alpha Capital Management Ltd. raised its position in shares of Diodes by 56.9% in 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 buying an additional 306,900 shares during the last quarter. Ameriprise Financial Inc. increased its position in Diodes by 132.3% during the second quarter. Ameriprise Financial Inc. now owns 402,105 shares of the semiconductor company's stock worth $21,267,000 after purchasing an additional 228,976 shares during the last quarter. Cubist Systematic Strategies LLC acquired a new position in Diodes during the first quarter worth approximately $8,679,000. Nuveen LLC acquired a new position in Diodes during the first quarter worth approximately $5,593,000. Finally, Dark Forest Capital Management LP acquired a new position in Diodes during the first quarter worth approximately $5,214,000. 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.