DAQO New Energy Corp. (NYSE:DQ) Receives $25.99 Consensus PT from Analysts

Key Points

• DAQO New Energy Corp. has received a consensus recommendation of "Moderate Buy" from analysts, with an average price target of $25.99.
• Recent analyst updates include Citigroup raising its price target significantly from $27 to $37 and Goldman Sachs downgrading the stock from "neutral" to "sell".
• Shares of DAQO New Energy have experienced a 4.7% drop and the company reported a quarterly earnings loss, exceeding expectations with an EPS of ($1.14).

DAQO New Energy Corp. (NYSE:DQ - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the eight analysts that are presently covering the stock, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation, four have issued a buy recommendation and two have given a strong buy recommendation to the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $25.8443.

Several equities analysts have recently issued reports on the stock. Roth Capital reissued a "neutral" rating and set a $25.00 price target on shares of DAQO New Energy in a report on Thursday. The Goldman Sachs Group cut shares of DAQO New Energy from a "neutral" rating to a "sell" rating in a research note on Thursday. Glj Research restated a "buy" rating and set a $30.51 price objective on shares of DAQO New Energy in a research note on Tuesday, August 26th. HSBC upgraded shares of DAQO New Energy from a "hold" rating to a "buy" rating and set a $31.00 price objective on the stock in a research note on Wednesday, August 27th. Finally, Wall Street Zen upgraded shares of DAQO New Energy from a "sell" rating to a "hold" rating in a research note on Monday, September 15th.

Institutional Investors Weigh In On DAQO New Energy

Hedge funds and other institutional investors have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd raised its stake in shares of DAQO New Energy by 86,700.0% during the first quarter. Caitong International Asset Management Co. Ltd now owns 1,736 shares of the semiconductor company's stock valued at $31,000 after purchasing an additional 1,734 shares in the last quarter. Headlands Technologies LLC acquired a new stake in DAQO New Energy in the 2nd quarter valued at about $29,000. Virtu Financial LLC acquired a new stake in DAQO New Energy in the 1st quarter valued at about $187,000. Vident Advisory LLC acquired a new stake in DAQO New Energy in the 1st quarter valued at about $216,000. Finally, Harvest Portfolios Group Inc. acquired a new stake in DAQO New Energy in the 1st quarter valued at about $305,000. 47.22% of the stock is currently owned by institutional investors.

DAQO New Energy Price Performance

Shares of NYSE:DQ traded up $1.24 during midday trading on Friday, reaching $27.23. The company had a trading volume of 1,372,754 shares, compared to its average volume of 1,415,166. The stock's fifty day moving average price is $23.64 and its 200-day moving average price is $18.33. The stock has a market capitalization of $1.83 billion, a P/E ratio of -4.66 and a beta of 0.50. DAQO New Energy has a one year low of $12.40 and a one year high of $30.85.

DAQO New Energy (NYSE:DQ - Get Free Report) last released its quarterly earnings data on Tuesday, August 26th. The semiconductor company reported ($1.14) EPS for the quarter, topping analysts' consensus estimates of ($1.16) by $0.02. DAQO New Energy had a negative net margin of 65.64% and a negative return on equity of 6.54%. The firm had revenue of $75.19 million during the quarter, compared to the consensus estimate of $140.54 million. As a group, sell-side analysts forecast that DAQO New Energy will post -3.5 earnings per share for the current year.

DAQO New Energy announced that its Board of Directors has authorized a share repurchase plan on Tuesday, August 26th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the semiconductor company to purchase shares of its stock through open market purchases. Stock buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

About DAQO New Energy

Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon to photovoltaic product manufacturers in the People's Republic of China. Its products are used in ingots, wafers, cells, and modules for solar power solutions. The company was formerly known as Mega Stand International Limited and changed its name to Daqo New Energy Corp.