Diodes (NASDAQ:DIOD) Incorporated (NASDAQ:DIOD) CEO Keh-Shew Lu has sold a total of 16,500 shares of company stock, with transactions valued at over $1.2 million. According to the latest filings, the sales occurred on multiple dates, with prices ranging from $72.7 to $73.9341 per share.
The transactions began on May 16, 2024, when Lu sold 9,000 shares at a weighted average price of $72.7. Subsequent sales took place on May 17, with 1,500 shares sold at $73.4 each, and on May 20, where 6,000 shares were sold at a weighted average price of $73.9341. Following these sales, Lu still holds a significant number of shares directly and indirectly through various trusts and investment entities.
Investors often monitor insider selling as it can provide insights into an executive’s perspective on the company’s current valuation. However, it should be noted that insider transactions are not always indicative of company performance and can be motivated by a variety of personal financial needs or portfolio strategies.
For those interested in the detailed breakdown of the transactions, the prices for the May 16 sale ranged from $72.20 to $73.20, and for the May 20 sale, they ranged from $73.60 to $74.20. These details were provided as part of the footnotes in the filing, indicating that the prices reported were weighted averages.
In addition to the sales, a footnote in the filing indicated that 665 shares valued at $73.82 each were withheld to cover income tax obligations related to vested restricted stock units, totaling $49,090. This is a common practice for settling tax liabilities arising from the vesting of equity awards.
As of the latest report, Lu's direct and indirect holdings in Diodes Incorporated remain substantial, with various family trusts and foundations maintaining significant stakes in the company.
InvestingPro Insights
Amidst the news of Diodes Incorporated (NASDAQ:DIOD) CEO Keh-Shew Lu's recent stock sales, investors might be seeking a broader perspective on the company's financial health and market performance. InvestingPro data and tips offer additional insights that could help shareholders understand the context behind these transactions.
InvestingPro data highlights a mixed picture for Diodes Incorporated. The company's market capitalization stands at around $3.4 billion, with a price-to-earnings (P/E) ratio of 20.01, which adjusts to 21.92 when considering the last twelve months as of Q1 2024. This suggests a valuation that is in line with earnings, though the adjusted P/E indicates a slight increase. The revenue growth, however, has seen a decline of -24.64% over the last twelve months as of Q1 2024, a figure that underscores the challenges faced in the current fiscal year.
Moreover, the company's gross profit margin remains robust at 37.64%, reflecting its ability to maintain profitability despite revenue headwinds. The price of the stock as of the previous close was $73.27, which is approximately 75.81% of its 52-week high, indicating that the stock is trading below its peak price over the last year.
InvestingPro Tips also shed light on some key aspects of Diodes Incorporated's financial situation. The company holds more cash than debt on its balance sheet, which is a positive sign of financial stability. Additionally, liquid assets exceed short-term obligations, providing further evidence of the company's strong liquidity position. However, it's noteworthy that four analysts have revised their earnings downwards for the upcoming period, and a sales decline is anticipated for the current year.
For investors looking for a more comprehensive analysis, InvestingPro provides additional tips, including the expectation that Diodes will remain profitable this year and has been profitable over the last twelve months. The company also boasts a strong return over the last five years, yet it does not pay a dividend to shareholders. For those who wish to delve deeper, there are a total of 9 InvestingPro Tips available at https://www.investing.com/pro/DIOD. And remember, using the coupon code PRONEWS24 will get you an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to even more valuable insights.
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