DAQO New Energy Corp. (NYSE:DQ) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Consensus "Hold" — Six analysts give DAQO an average rating of "Hold" (2 sell, 2 hold, 1 buy, 1 strong buy) with a 12‑month average price target of $23.59.
• Significant earnings miss and weak fundamentals — Q1 reported EPS of ($1.31) versus consensus ($0.13) and revenue of $26.72M versus $186.28M, leaving a negative net margin (−32.9%) and negative ROE; the stock trades near $19.22 with a 12‑month range of $12.52–$36.59.
• Notable institutional accumulation — About 47% of shares are owned by hedge funds and institutions, with large recent position increases from Millennium Management, Goldman Sachs and UBS despite mixed analyst sentiment.

DAQO New Energy Corp. (NYSE:DQ - Get Free Report) has been assigned a consensus rating of "Hold" from the six analysts that are presently covering the firm, MarketBeat Ratings reports. Two analysts have rated the stock with a sell recommendation, two have assigned a hold recommendation, one has assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $23.5933.

A number of equities research analysts have recently weighed in on DQ shares. Weiss Ratings restated a "sell (d-)" rating on shares of DAQO New Energy in a report on Friday, March 27th. Roth Mkm set a $19.00 price objective on shares of DAQO New Energy in a report on Thursday. Wall Street Zen lowered shares of DAQO New Energy from a "hold" rating to a "strong sell" rating in a report on Saturday. New Street Research set a $18.13 price objective on shares of DAQO New Energy in a report on Tuesday, February 3rd. Finally, Glj Research downgraded shares of DAQO New Energy from a "buy" rating to a "sell" rating and dropped their target price for the company from $30.51 to $18.13 in a research report on Tuesday, February 3rd.

DAQO New Energy Stock Performance

Shares of DQ opened at $19.22 on Friday. DAQO New Energy has a twelve month low of $12.52 and a twelve month high of $36.59. The firm's fifty day simple moving average is $22.13 and its 200-day simple moving average is $26.57. The firm has a market capitalization of $1.30 billion, a price-to-earnings ratio of -6.91 and a beta of 0.66.

DAQO New Energy (NYSE:DQ - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The semiconductor company reported ($1.31) earnings per share for the quarter, missing analysts' consensus estimates of ($0.13) by ($1.18). DAQO New Energy had a negative net margin of 32.92% and a negative return on equity of 3.19%. The firm had revenue of $26.72 million during the quarter, compared to analyst estimates of $186.28 million. On average, analysts predict that DAQO New Energy will post -0.38 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of DQ. Millennium Management LLC grew its position in shares of DAQO New Energy by 1,261.0% in the 1st quarter. Millennium Management LLC now owns 354,596 shares of the semiconductor company's stock valued at $6,422,000 after buying an additional 328,541 shares during the last quarter. Goldman Sachs Group Inc. grew its position in shares of DAQO New Energy by 117.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,159,835 shares of the semiconductor company's stock valued at $21,005,000 after buying an additional 625,900 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of DAQO New Energy by 34.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 174,912 shares of the semiconductor company's stock valued at $3,168,000 after buying an additional 44,780 shares during the last quarter. Jump Financial LLC grew its position in shares of DAQO New Energy by 78.0% in the 2nd quarter. Jump Financial LLC now owns 212,200 shares of the semiconductor company's stock valued at $3,219,000 after buying an additional 92,954 shares during the last quarter. Finally, Bank of America Corp DE grew its position in shares of DAQO New Energy by 267.0% in the 2nd quarter. Bank of America Corp DE now owns 193,805 shares of the semiconductor company's stock valued at $2,940,000 after buying an additional 141,004 shares during the last quarter. 47.22% of the stock is owned by hedge funds and other institutional investors.

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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