Diodes (NASDAQ:DIOD) Rating Increased to Buy at Wall Street Zen

Key Points

• Diodes' stock rating was upgraded from "hold" to "buy" by Wall Street Zen, reflecting a positive outlook from analysts.
• The company reported a quarterly earnings per share (EPS) of $0.32, surpassing the consensus estimate and showing a year-over-year revenue increase of 14.5%.
• Diodes has authorized a $100 million share repurchase plan, indicating the board's belief that its stock is undervalued.

Wall Street Zen upgraded shares of Diodes (NASDAQ:DIOD - Free Report) from a hold rating to a buy rating in a report published on Sunday morning.

A number of other brokerages also recently commented on DIOD. Benchmark restated a "buy" rating and issued a $62.00 target price (up previously from $55.00) on shares of Diodes in a research note on Friday, June 13th. Zacks Research upgraded Diodes to a "strong sell" rating in a research note on Friday, August 8th. 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 company's stock. According to data from MarketBeat, Diodes has a consensus rating of "Moderate Buy" and a consensus target price of $55.00.

Diodes Stock Performance

Diodes stock traded down $1.38 during trading hours on Friday, hitting $54.44. 575,334 shares of the stock traded hands, compared to its average volume of 497,539. Diodes has a 1 year low of $32.93 and a 1 year high of $70.98. The company has a debt-to-equity ratio of 0.01, a current ratio of 3.33 and a quick ratio of 2.04. The stock has a market capitalization of $2.53 billion, a price-to-earnings ratio of 39.74 and a beta of 1.54. The firm's 50 day moving average price is $53.50 and its 200-day moving average price is $48.00.

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

Diodes declared that its Board of Directors has approved a share repurchase plan on Thursday, May 8th that permits the company to buyback $100.00 million in shares. This buyback authorization permits the semiconductor company to buy up to 5.4% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

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

Institutional Investors Weigh In On Diodes

A number of large investors have recently made changes to their positions in the stock. Global Alpha Capital Management Ltd. grew 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 purchasing an additional 306,900 shares in the last quarter. Charles Schwab Investment Management Inc. grew its position in shares of Diodes by 5.3% in 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 purchasing an additional 36,488 shares in the last quarter. Northern Trust Corp grew its position in shares of Diodes by 9.5% in the fourth quarter. Northern Trust Corp now owns 570,564 shares of the semiconductor company's stock valued at $35,187,000 after purchasing an additional 49,377 shares in the last quarter. Frontier Capital Management Co. LLC grew its position in Diodes by 14.2% in the fourth quarter. Frontier Capital Management Co. LLC now owns 552,054 shares of the semiconductor company's stock worth $34,045,000 after acquiring an additional 68,823 shares during the period. Finally, Royal Bank of Canada grew its position in Diodes by 12.3% in the first quarter. Royal Bank of Canada now owns 494,235 shares of the semiconductor company's stock worth $21,336,000 after acquiring an additional 54,309 shares during the period. 99.23% of the stock is currently owned by hedge funds and other institutional investors.

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.