Diodes (NASDAQ:DIOD) Stock Falls 7.9% - Should You Sell?

Key Points

• Diodes shares fell 7.9% to about $99.21 in Wednesday trading, with volume below the stock’s average. The decline followed mixed analyst actions, including downgrades by Zacks Research and Wall Street Zen.
• Despite the selloff, analysts maintain a “Moderate Buy” consensus with a $135 average price target; Bank of America initiated coverage with a Buy rating and a $135 target.
• Diodes recently exceeded quarterly earnings and revenue expectations, reporting $0.70 EPS and $445.53 million in revenue, while revenue grew 21.7% year over year. Institutional investors own 99.23% of the company’s shares.

Diodes Incorporated (NASDAQ:DIOD - Get Free Report)'s stock price traded down 7.9% during mid-day trading on Wednesday. The stock traded as low as $99.01 and last traded at $99.2130. 421,342 shares were traded during trading, a decline of 26% from the average daily volume of 568,039 shares. The stock had previously closed at $107.74.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. Zacks Research lowered shares of Diodes from a "strong-buy" rating to a "hold" rating in a research report on Monday. Wall Street Zen lowered Diodes from a "strong-buy" rating to a "buy" rating in a report on Saturday, September 26th. Bank of America initiated coverage on Diodes in a report on Tuesday. They issued a "buy" rating and a $135.00 target price for the company. Truist Financial lowered their target price 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. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Diodes in a research note on Wednesday, July 15th. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, Diodes currently has an average rating of "Moderate Buy" and a consensus price target of $135.00.

Diodes Price Performance

The business has a fifty day moving average of $93.76 and a 200-day moving average of $95.22. The firm has a market capitalization of $4.57 billion, a P/E ratio of 53.61 and a beta of 1.90. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.99 and a current ratio of 3.17.

Diodes (NASDAQ:DIOD - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The semiconductor company reported $0.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.63 by $0.07. Diodes had a net margin of 5.27% and a return on equity of 4.33%. The business had revenue of $445.53 million for the quarter, compared to analyst estimates of $436.60 million. During the same quarter in the previous year, the business earned $0.32 earnings per share. The firm's revenue was up 21.7% compared to the same quarter last year. Diodes has set its Q3 2026 guidance at 0.950-1.150 EPS. On average, sell-side analysts forecast that Diodes Incorporated will post 3.15 EPS for the current fiscal year.

Hedge Funds Weigh In On Diodes

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DIOD. QRG Capital Management Inc. raised its holdings in shares of Diodes by 7.4% during the second quarter. QRG Capital Management Inc. now owns 6,341 shares of the semiconductor company's stock worth $694,000 after acquiring an additional 436 shares during the period. WINTON GROUP Ltd bought a new stake in shares of Diodes during the 2nd quarter worth $274,000. Engineers Gate Manager LP lifted its holdings in Diodes by 98.8% during the 2nd quarter. Engineers Gate Manager LP now owns 7,060 shares of the semiconductor company's stock worth $773,000 after buying an additional 3,509 shares during the period. Integrated Wealth Concepts LLC bought a new stake in shares of Diodes in the 2nd quarter valued at $35,000. Finally, NewEdge Advisors LLC acquired a new position in Diodes during the 2nd quarter valued at about $563,000. Institutional investors own 99.23% of the company's stock.

About Diodes

Diodes Incorporated NASDAQ: DIOD is a semiconductor manufacturer that designs, manufactures and sells products used to manage, control and protect electrical power and signals. Its portfolio includes discrete semiconductor devices, power management products, standard and application-specific logic devices, analog components and mixed-signal products.

The company's products include rectifiers, transistors, MOSFETs, bipolar transistors, diodes, protection devices, LED drivers, voltage regulators, converters, switches and signal-integrity components.

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