An interesting stock that came up in some of our conversations today is Diodes Incorporated (NASDAQ:DIOD). At current price of $34.79, the shares have already lost -1.99 points (-5.41% lower) from its previous close of $36.78. Should you buy or avoid them? The stock sets an active trading volume day with a reported 166037 contracts so far this session. DIOD shares had a relatively better volume day versus average trading capacity of 388.22 thousand shares, but with a 40.32 million float and a -2.28% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for DIOD stock indicates that the average analyst price target is $42 per share. This means the stock has a potential increase of 20.72% from where the DIOD share price has been trading recently which is between $36.37 and $37.22. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $42.
The shorts are running away from Diodes Incorporated (DIOD) stock. The latest set of short interest data was released on 30 April 2019, and the numbers show a drop in short interest in DIOD shares. While short interest still represents only 10.24% of DIOD’s float, the number of shares shorted have fallen by -333063. The number of shares shorted fell to 3795189 shares, down from 4128252 shares during the preceding fortnight. With average daily trading volumes at 315103 shares, days to cover decreased to about 14.71968 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “The Zacks Analyst Blog Highlights: OptimizeRx, Match, Cubic, PCTEL and Diodes” and dated May 17, 2019.
Looking at the current readings for Diodes Incorporated, the two-week RSI stands at 41.15. This figure suggests that DIOD stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current DIOD readings is similarly very revealing as it has a stochastic reading of 23.39% at this stage. This figure means that DIOD share price today is being overbought.
Technical chart claims that Diodes Incorporated (DIOD) would settle between $37.21/share to $37.64/share level. However, if the stock price goes below the $36.36 mark, then the market for Diodes Incorporated becomes much weaker. If that happens, the stock price might even plunge as low as $35.94 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.65. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Longbow lowered their recommendation on shares of DIOD from Buy to Neutral in their opinion released on April 17. Sidoti analysts bumped their rating on Diodes Incorporated (NASDAQ:DIOD) stock from Neutral to Buy in a separate flash note issued to investors on September 19. Analysts at Sidoti lowered the stock to a Neutral call from its previous Buy recommendation, in a research note that dated back to June 07.
DIOD equity has an average rating of 3, with the figure leaning towards a bullish end. 2 analysts who tracked the company were contacted by Reuters. Amongst them, 2 rated the stock as a hold while the remaining 0 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 0 analysts rated Diodes Incorporated (NASDAQ:DIOD) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, DIOD stock price is currently trading at 12.01X forward 12-month Consensus EPS estimates, and its P/S ratio is 1.5 while for the average stock in the same group, the multiple is 8.36. Diodes Incorporated current P/E ratio of 15.67 means it is trading at a premium against its industry’s 8. In the past 5 years, this ratio for the stock has been fluctuating between 15.39 and 80.21.
Diodes Incorporated (DIOD)’s current-quarter revenues are projected to climb by nearly 5.89% to hit $322000, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 3.02% from $1.21 billion to a noteworthy $1.25 billion. At the other end of the current quarter income statement, Diodes Incorporated is expected to see its adjusted earnings surge by roughly 29.31% to hit $0.75 per share. For the fiscal year, DIOD’s earnings are projected to climb by roughly 17.65% to hit $2.8 per share.