At Diodes Incorporated (NASDAQ:DIOD), Share Price Got a Bit Ahead of the Fundamentals

Diodes Incorporated (NASDAQ:DIOD) previous close was $50.26 while the outstanding shares total 51.34M. The firm has a beta of 1.30, a 12-month trailing P/E ratio of 18.12, and a growth ratio of 1.21. DIOD’s shares traded lower over the last trading session, losing -1.82% on 06/24/20. The shares fell to a low of $48.67 before closing at $49.34. Intraday shares traded counted 0.25 million, which was 20.27% higher than its 30-day average trading volume of 312.59K. The stock’s Relative Strength Index (RSI) is 48.89, with weekly volatility at 3.26% and ATR at 2.10. The DIOD stock’s 52-week price range has touched low of $31.51 and a $59.70 high.

Investors have identified the Semiconductors company Diodes Incorporated as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $2.56 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Diodes Incorporated (DIOD) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For DIOD, the company has in raw cash 269.52 million on their books with 48.07 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 796446000 million total, with 264117000 million as their total liabilities.

DIOD were able to record 39.47 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 11.4 million. In cash movements, the company had a total of 53.67 million as operating cash flow.

Potential earnings growth for Diodes Incorporated (DIOD)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Diodes Incorporated recorded a total of 280.72 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -7.69% coming in sequential stages and their sales for the third quarter reducing by -7.28%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 184.88 million trying to sell their products during the last quarter, with the result yielding a gross income of 95.84 million. This allows shareholders to hold on to 51.34M with the revenue now reading 0.39 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.53 cents a share).

Having a look at the company’s valuation, the company is expected to record 2.91 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on DIOD sounds very interesting.

Is the stock of DIOD attractive?

In related news, Corporate Secretary, White Richard Dallas sold 5,000 shares of the company’s stock in a transaction that recorded on Jun 05. The sale was performed at an average price of 54.00, for a total value of 270,000. As the sale deal closes, the Director, CHEN C H now sold 5,316 shares of the company’s stock, valued at 276,857. Also, Director, CHEN C H sold 14,684 shares of the company’s stock in a deal that was recorded on Jun 04. The shares were price at an average price of 51.66 per share, with a total market value of 758,568. Following this completion of acquisition, the Director, CHEN C H now holds 30,000 shares of the company’s stock, valued at 1,515,000. In the last 6 months, insiders have changed their ownership in shares of company stock by 3.10%.

4 out of 7 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Diodes Incorporated. 0 analysts has assigned a Sell rating on the DIOD stock. The 12-month mean consensus price target for the company’s shares has been set at $53.00.