Diodes (NASDAQ:DIOD) Stock Breaks Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Diodes shares rose above their 200-day moving average of $88.39, reaching an intraday high of $94.64 and last trading at $91.27.
• The semiconductor company beat quarterly estimates, reporting EPS of $1.18 versus $1.05 expected and revenue of $532.59 million, up 35.8% year over year.
• Analyst sentiment is moderately positive: five analysts rate the stock Buy and two rate it Hold, with an average price target of $129.17; Needham lowered its target to $100 while maintaining a Buy rating.

Diodes Incorporated (NASDAQ:DIOD - Get Free Report) shares passed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $88.39 and traded as high as $94.64. Diodes shares last traded at $91.27, with a volume of 697,032 shares changing hands.

Analyst Upgrades and Downgrades

DIOD has been the topic of a number of research reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Diodes in a report on Tuesday, October 13th. Needham & Company LLC dropped their target price on Diodes from $110.00 to $100.00 and set a "buy" rating for the company in a report on Friday, November 6th. Robert W. Baird set a $192.00 target price on shares of Diodes in a research report on Thursday, August 6th. Wall Street Zen upgraded shares of Diodes from a "buy" rating to a "strong-buy" rating in a research note on Saturday, October 24th. Finally, Truist Financial lowered their price target on shares of Diodes from $139.00 to $133.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Five research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $129.17.

Diodes Stock Up 5.2%

The firm has a market cap of $4.17 billion, a price-to-earnings ratio of 36.65 and a beta of 1.96. The company has a debt-to-equity ratio of 0.19, a current ratio of 3.07 and a quick ratio of 2.02. The stock has a 50-day moving average of $90.00 and a 200-day moving average of $88.39.

Diodes (NASDAQ:DIOD - Get Free Report) last announced its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $1.18 earnings per share for the quarter, beating the consensus estimate of $1.05 by $0.13. Diodes had a return on equity of 6.17% and a net margin of 6.51%. The firm had revenue of $532.59 million during the quarter, compared to analysts' expectations of $512.94 million. During the same period in the previous year, the firm earned $0.37 EPS. The company's quarterly revenue was up 35.8% compared to the same quarter last year. Sell-side analysts predict that Diodes Incorporated will post 3.66 EPS for the current fiscal year.

Hedge Funds Weigh In On Diodes

Hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. bought a new position in Diodes in the second quarter valued at approximately $803,920,000. William Blair Investment Management LLC acquired a new stake in shares of Diodes in the 2nd quarter valued at $184,153,000. Dimensional Fund Advisors LP increased its stake in shares of Diodes by 2.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,436,359 shares of the semiconductor company's stock valued at $166,294,000 after purchasing an additional 53,934 shares during the last quarter. Andar Capital Management HK Ltd bought a new position in shares of Diodes in the 2nd quarter valued at $80,000,000. Finally, Artemis Investment Management LLP increased its stake in shares of Diodes by 28.3% in the 3rd quarter. Artemis Investment Management LLP now owns 450,633 shares of the semiconductor company's stock valued at $43,617,000 after purchasing an additional 99,286 shares during the last quarter. 99.23% of the stock is currently owned by institutional investors and hedge funds.

Diodes Company Profile

Diodes Incorporated designs, manufactures and supplies semiconductor products used in electronic systems. Its portfolio includes discrete semiconductors, analog and mixed-signal devices, and power-management products, such as rectifiers, transistors, MOSFETs, protection devices, converters and LED drivers. The company's products support applications in automotive, industrial, computing, consumer electronics and communications markets. Diodes serves customers globally through operations and sales across the Americas, Europe and Asia.

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