DAQO New Energy Corp. (NYSE:DQ) Given Average Recommendation of "Reduce" by Brokerages

Key Points

• DAQO New Energy has a consensus “Reduce” rating from seven brokerages: four sell ratings, one hold, and two buys. The average 12-month price target is $19.36, though several analysts recently lowered ratings or targets, including Goldman Sachs setting a $10 target.
• Shares opened at $12.49, near the company’s one-year low of $11.38 and well below its $36.59 high. The stock has a market capitalization of approximately $845 million and trades with a negative price-to-earnings ratio.
• The company reported a quarterly loss of $1.20 per share, missing the $0.57 loss expected by analysts, despite revenue of $62.66 million exceeding the $52.93 million consensus estimate. Analysts expect a full-year loss of about $1.96 per share.

DAQO New Energy Corp. (NYSE:DQ - Get Free Report) has received a consensus rating of "Reduce" from the seven brokerages that are currently covering the company, MarketBeat Ratings reports. Four investment analysts have rated the stock with a sell rating, one has issued a hold rating and two have assigned a buy rating to the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $19.3550.

Several brokerages have weighed in on DQ. JPMorgan Chase & Co. lowered their target price on shares of DAQO New Energy from $35.50 to $22.00 and set an "overweight" rating for the company in a research note on Friday, July 31st. Zacks Research lowered DAQO New Energy from a "hold" rating to a "strong sell" rating in a report on Friday, August 7th. The Goldman Sachs Group cut DAQO New Energy from a "neutral" rating to a "sell" rating and set a $10.00 price target for the company. in a research note on Monday, August 24th. New Street Research set a $10.00 price target on DAQO New Energy in a report on Monday, August 24th. Finally, Weiss Ratings lowered DAQO New Energy from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, August 28th.

DAQO New Energy Stock Performance

DQ stock opened at $12.49 on Friday. DAQO New Energy has a one year low of $11.38 and a one year high of $36.59. The firm has a market cap of $845.20 million, a price-to-earnings ratio of -4.40 and a beta of 0.67. The firm has a 50-day simple moving average of $13.02 and a two-hundred day simple moving average of $17.50.

DAQO New Energy (NYSE:DQ - Get Free Report) last issued its quarterly earnings data on Thursday, August 20th. The semiconductor company reported ($1.20) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.57) by ($0.63). The firm had revenue of $62.66 million during the quarter, compared to analysts' expectations of $52.93 million. DAQO New Energy had a negative return on equity of 3.26% and a negative net margin of 34.50%. As a group, equities analysts predict that DAQO New Energy will post -1.96 earnings per share for the current fiscal year.

Institutional Trading of DAQO New Energy

Large investors have recently bought and sold shares of the stock. Quarry LP acquired a new stake in shares of DAQO New Energy during the third quarter worth $26,000. Nykredit A S purchased a new position in DAQO New Energy in the 2nd quarter worth $28,000. Headlands Technologies LLC purchased a new position in DAQO New Energy in the 2nd quarter worth $29,000. Farther Finance Advisors LLC lifted its position in DAQO New Energy by 1,650.0% during the 4th quarter. Farther Finance Advisors LLC now owns 1,330 shares of the semiconductor company's stock worth $39,000 after acquiring an additional 1,254 shares during the period. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in DAQO New Energy during the 4th quarter worth about $49,000. Hedge funds and other institutional investors own 47.22% of the company's stock.

About DAQO New Energy

DAQO New Energy Corp. operates as a leading manufacturer of high-purity polysilicon and monocrystalline silicon wafers for the global solar photovoltaic industry. The company focuses on serving module makers and integrated solar producers with critical upstream materials, applying proprietary technologies and optimized processes to achieve high product purity and consistently low production costs. Its core offerings include solar-grade polysilicon—used in the ingot casting and wafer slicing stages—and premium mono-silicon wafers, which are a key input for high-efficiency solar cell production.

Founded in the late 2000s and listed on the New York Stock Exchange in 2010, DAQO New Energy established its first polysilicon facility in China's Xinjiang Uygur Autonomous Region.

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