Interactive Brokers shares jump as it secures spot in S&P 500
On Monday, Benchmark analyst David Williams revised the price target for Diodes (NASDAQ:DIOD) shares, lowering it to $55 from the previous $65, while keeping a Buy rating on the stock. The stock has shown remarkable resilience, posting a 12.35% gain over the past week. According to InvestingPro analysis, Diodes is currently slightly undervalued, with analyst targets ranging from $43 to $65. Williams noted that Diodes’ first-quarter results showed continued improvement across all end markets, with a healthier inventory and demand environment, and no significant impact from tariffs.
The company reported first-quarter revenue that was approximately 2% higher than expected, and earnings were 25% above consensus. With trailing twelve-month revenue of $1.34 billion and strong liquidity metrics, including a current ratio of 3.43, Diodes maintains a solid financial position. This performance was attributed to strong demand in the Computing segment, particularly from data centers and AI servers in Asia. Diodes provided a sales outlook of $355 million, indicating a 2% quarter-over-quarter increase and an 11% year-over-year growth, which is also 3% higher than the prior consensus. For deeper insights into Diodes’ financial health and growth prospects, InvestingPro subscribers have access to over 30 additional key metrics and analysis tools.
Despite facing macroeconomic uncertainties in the second half of the year, Diodes has not observed any material slowdown from customers, with book-to-bill and backlog metrics strengthening throughout the quarter across all regions. The company maintains a gross profit margin of 32.88% and holds more cash than debt on its balance sheet, demonstrating financial stability. However, gross margin in the near term continues to be affected by utilization and mix, but is expected to see significant recovery as the mix of Auto and Industrial improves and volumes increase.
Williams concluded by expressing confidence in Diodes’ execution and growth opportunities, asserting that the company is well-positioned to capitalize on the anticipated sales rebound. The adjustment in the price target to $55 reflects a more conservative FY26 EPS estimate due to the prevailing macro uncertainty. Get comprehensive insights into Diodes’ valuation and growth potential with InvestingPro’s detailed research report, part of our coverage of over 1,400 US stocks.
In other recent news, Diodes Incorporated reported its first-quarter 2025 financial results, revealing an earnings per share (EPS) of $0.19, which fell short of the forecasted $0.31. The company’s revenue for the quarter was $332.1 million, slightly below the anticipated $334.84 million but marking a 10% increase from the previous year. Despite the earnings miss, Diodes has provided guidance for the second quarter of 2025, projecting revenue growth to approximately $355 million, signaling continued optimism for future performance. The company’s strategic initiatives in high-demand sectors such as AI servers, automotive, and industrial markets are expected to drive this growth. In addition, Diodes announced a $100 million stock repurchase program, indicating confidence in its business and future growth prospects. Analysts from firms like Benchmark have noted Diodes’ solid execution and its ongoing strategy to balance internal and external manufacturing, which could mitigate potential impacts from tariff changes. The company is also focused on expanding its product offerings in AI-related applications, which is expected to contribute positively to its performance in upcoming quarters.
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