Diodes (NASDAQ:DIOD) Cut to Hold at Zacks Research

Zacks Research lowered shares of Diodes (NASDAQ:DIOD) from a strong-buy rating to a hold rating in a research report sent to investors on Monday,Zacks reports.

DIOD has been the subject of several other reports. Wells Fargo & Company set a $135.00 target price on shares of Diodes in a report on Tuesday. Robert W. Baird set a $192.00 price target on shares of Diodes in a report on Thursday, August 6th. Bank of America started coverage on shares of Diodes in a research report on Tuesday. They issued a “buy” rating and a $135.00 price target for the company. Truist Financial reduced their price target on shares of Diodes from $139.00 to $133.00 and set a “buy” rating for the company 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 research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, Diodes currently has an average rating of “Moderate Buy” and a consensus price target of $135.00.

Diodes Price Performance

Shares of NASDAQ:DIOD opened at $100.65 on Monday. Diodes has a one year low of $42.28 and a one year high of $125.99. The stock has a fifty day moving average of $94.25 and a 200-day moving average of $95.46. The company has a market capitalization of $4.63 billion, a PE ratio of 54.41 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) last issued its earnings results on Wednesday, August 5th. The semiconductor company reported $0.70 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.63 by $0.07. The business had revenue of $445.53 million for the quarter, compared to analysts’ expectations of $436.60 million. Diodes had a return on equity of 4.33% and a net margin of 5.27%.The company’s quarterly revenue was up 21.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.32 EPS. Diodes has set its Q3 2026 guidance at 0.950-1.150 EPS. As a group, equities analysts anticipate that Diodes will post 3.15 EPS for the current fiscal year.

Hedge Funds Weigh In On Diodes

Several institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in shares of Diodes during the 2nd quarter worth about $803,920,000. William Blair Investment Management LLC bought a new position in Diodes during the second quarter valued at approximately $184,153,000. Dimensional Fund Advisors LP lifted its stake in Diodes by 2.3% in the first quarter. Dimensional Fund Advisors LP now owns 2,436,359 shares of the semiconductor company’s stock valued at $166,294,000 after acquiring an additional 53,934 shares during the last quarter. Andar Capital Management HK Ltd acquired a new stake in Diodes in the second quarter valued at approximately $80,000,000. Finally, Bank of New York Mellon Corp bought a new stake in Diodes in the second quarter worth approximately $41,421,000. 99.23% of the stock is currently owned by hedge funds and other institutional investors.

Key Diodes News

Here are the key news stories impacting Diodes this week:

• Positive Sentiment: Bank of America initiated coverage with a Buy rating and a $135 price target, implying roughly 32% upside from the cited $102.14 price. The firm expects Diodes’ earnings per share to grow at a 58% annual rate from 2026 through 2028, outpacing the 35% growth forecast for comparable analog-chip companies. Diodes gets BofA buy rating as earnings growth seen outpacing analog peers
• Positive Sentiment: Diodes reported strong quarterly momentum, with revenue increasing 21.7% year over year to $445.5 million and adjusted earnings of $0.70 per share exceeding the $0.63 consensus estimate. Management’s Q3 2026 EPS guidance of $0.95 to $1.15 also points to substantially stronger profitability ahead. Diodes stock reports 21.7 percent Q2 revenue growth
• Neutral Sentiment: Industry coverage highlights demand opportunities for small-signal diodes from energy efficiency initiatives, electric vehicles, 5G and the Internet of Things. This supports the company’s longer-term market backdrop but does not represent a specific new contract or forecast from Diodes. United Kingdom Small Signal Diode Market Forecast 2026-2031
• Negative Sentiment: Zacks Research downgraded Diodes from Strong Buy to Hold. The rating change likely contributed to selling pressure, particularly after the stock’s sharp prior advance and relatively elevated valuation.

Diodes Company Profile

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.