Geode Capital Management LLC has recently increased its stake in Diodes Incorporated (NASDAQ:DIOD) by 3.1%, according to the company’s recent filing with the Securities and Exchange Commission (SEC). As of the end of last quarter, the institutional investor held 842,862 shares in the semiconductor company, worth approximately $64,175,000. The move comes amid growing consensus among analysts that Diodes could exceed expectations for its current fiscal year.
In fact, Diodes recently announced better-than-expected earnings results for Q1 2023. The semiconductor manufacturer reported earnings per share (EPS) of $1.59 for the quarter, surpassing analyst estimates of $1.46 by a healthy $0.13 margin. While revenue came in at $467.24 million—slightly less than analysts had anticipated—it’s worth noting that Diodes has managed to maintain a net margin of 16.61% despite challenging market conditions.
Diodes is primarily known for developing application-specific standard products across several semiconductor markets worldwide. Their product line includes MOSFETs, TVSs, Schottky rectifiers and diodes, as well as Zener diodes and various types of rectifiers.
Despite difficult market conditions last year—which saw a decline in revenue compared to the same period—the latest report is heartening news for investors who have put their faith in Diodes’ long-term viability.
Analysts predict that Diodes will continue to do well throughout the current fiscal year and expect EPS projections to hit 6.39 by its close on December 31st this year. It’s clear that Geode Capital Management LLC has taken note of this trend and increased its stake accordingly.
Ultimately, it remains to be seen whether other institutional investors will follow suit or whether we’ll see continued growth for Diodes over the coming months—although all signs seem positive so far.”
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Institutional Investors and Hedge Funds Increase Stakes in Diodes Incorporated Despite CEO Sales
Diodes Incorporated (NASDAQ: DIOD) has witnessed new stakes being placed by institutional investors and hedge funds, as well as a string of sales by CEOs. Belpointe Asset Management LLC purchased its stake worth $43,000 in the 4th quarter while Standard Family Office LLC bought $71,000 worth of shares during the 3rd quarter. Quantbot Technologies LP invested around $76,000 in Diodes Incorporated during the 2nd quarter while Point72 Hong Kong Ltd invested about $92,000 in the stock. CWM LLC boosted its holdings in the company by 19.1% in Q4 with an additional 198 shares.
It is noteworthy that 96.24% of Diodes’ stock is now held by institutional investors. The company’s market capitalization stands at $4.28bn with a price-to-earnings ratio of 12.76 and a beta of 1.46. Its one-year high-low range stands between $97.45 and $58.52 respectively.
Diodes Incorporated manufactures and supplies application-specific standard products to discrete semiconductor markets worldwide across multiple subsectors such as MOSFETs and TVS rectifiers among others.
StockNews.com recently commenced coverage on Diodes and rated it with a “buy” status amid positive reports from Wells Fargo & Company which downgraded their price target from $95 to $85 for the company’s stock.
Recent news reports reveal CEO Keh Shew Lu selling off his personal stakes amounting to around $2,272,320 while Brett R Whitmire sold almost 2,000 shares worth close to $170k.
Despite insider sales and rating downgrades that may have created concern among some investors regarding Diode’s performance going forward, its position still remains relatively strong with many insiders holding sizable amounts of stocks even after selling some portions off for profit-taking purposes.