DAQO New Energy Corp. (NYSE:DQ) Stock Rated "Reduce" by Wall Street Analysts

Key Points

• Wall Street’s consensus rating is “Reduce”: Four of six analysts recommend selling DAQO New Energy, with an average 12-month price target of $15.83. Recent target cuts included Goldman Sachs at $10 and JPMorgan at $22.
• The stock is trading near its one-year low: Shares opened at $10.89, compared with a 52-week range of $10.87 to $36.59, and remained below both their 50-day and 200-day moving averages.
• Recent earnings disappointed: DAQO reported a quarterly loss of $1.20 per share versus the expected $0.57 loss, despite revenue of $62.66 million exceeding estimates. The company posted negative net margins and return on equity, while institutional investors own 47.22% of its shares.

Shares of DAQO New Energy Corp. (NYSE:DQ - Get Free Report) have earned an average recommendation of "Reduce" from the six analysts that are covering the firm, MarketBeat.com reports. Four analysts have rated the stock with a sell recommendation, one has issued a hold recommendation and one has given a buy recommendation to the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $15.83.

Several equities research analysts have weighed in on the stock. Zacks Research downgraded shares of DAQO New Energy from a "hold" rating to a "strong sell" rating in a research note on Friday, August 7th. The Goldman Sachs Group downgraded DAQO New Energy from a "neutral" rating to a "sell" rating and set a $10.00 price target on the stock. in a research report on Monday, August 24th. JPMorgan Chase & Co. lowered their price objective on DAQO New Energy from $35.50 to $22.00 and set an "overweight" rating for the company in a research report on Friday, July 31st. New Street Research set a $10.00 target price on DAQO New Energy in a research note on Monday, August 24th. Finally, Weiss Ratings raised DAQO New Energy from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday, September 14th.

Hedge Funds Weigh In On DAQO New Energy

Hedge funds have recently modified their holdings of the stock. Nykredit A S acquired a new position in shares of DAQO New Energy during the second quarter valued at about $28,000. Cygnus Capital Advisors LLC acquired a new stake in DAQO New Energy in the 2nd quarter worth approximately $724,000. BTG Pactual Asset Management US LLC acquired a new stake in DAQO New Energy in the 2nd quarter worth approximately $224,000. Public Employees Retirement System of Ohio purchased a new stake in DAQO New Energy during the 2nd quarter worth approximately $273,000. Finally, Renaissance Technologies LLC purchased a new stake in DAQO New Energy during the 1st quarter worth approximately $3,285,000. Institutional investors and hedge funds own 47.22% of the company's stock.

DAQO New Energy Stock Performance

DQ stock opened at $10.89 on Tuesday. DAQO New Energy has a one year low of $10.87 and a one year high of $36.59. The firm has a market cap of $737.06 million, a price-to-earnings ratio of -3.84 and a beta of 0.67. The firm has a 50-day simple moving average of $12.84 and a two-hundred day simple moving average of $16.06.

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.

DAQO New Energy Company Profile

DA​​QO New Energy Corp. NYSE: DQ is a China-based manufacturer of high-purity polysilicon, a key raw material used to produce the wafers, cells and modules that make up solar photovoltaic panels. The company supplies polysilicon primarily to manufacturers in the global solar power industry.

Through its operating subsidiary, Xinjiang Daqo New Energy Co, Ltd., the company produces polysilicon at manufacturing facilities in China. Its products include polysilicon used in both monocrystalline and multicrystalline solar applications, with product specifications designed for use in advanced photovoltaic manufacturing.

Daqo New Energy was established in 2008 and began commercial polysilicon production in 2009.

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