Diodes Incorporated Shares Soar 6.30% on Stock Repurchase Program

Diodes Incorporated (NASDAQ: DIOD) shares surged 6.30% today, marking the fourth consecutive day of gains and a 22.89% increase over the past four days. The stock price reached its highest level since March 2025, with an intraday gain of 9.47%.

The strategy of buying DIOD shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 7.56% annualized gain. This suggests a relatively conservative approach, as the strategy capitalized on the stock's upward momentum while still providing a positive return.

Diodes Incorporated recently announced a $100 million stock repurchase program, signaling confidence in its future growth prospects. This move comes despite the company reporting a net loss of $4.4 million for the first quarter of 2025. The company's revenue, however, grew by 10% year-over-year, driven by robust performance in the computing market in Asia and improving conditions in Europe and North America. The automotive and industrial markets also made significant contributions to product revenue.

Benchmark, an investment firm, adjusted its price target for Diodes, lowering it from $65 to $55. However, the firm maintained its Buy rating, reflecting ongoing positive sentiment towards the company. Analyst David Williams from Benchmark reiterated the Buy rating, indicating that the company's fundamentals remain strong despite the reduced price target.