DAQO New Energy (NYSE:DQ) Downgraded to Sell Rating by Wall Street Zen

Key Points

• DAQO New Energy has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, with a mixed reaction from other analysts regarding its stock performance.
• The company recently reported negative earnings per share of ($1.14), which is slightly better than the expected ($1.16), and has a negative net margin of 65.64%.
• Despite the downgrade, Citigroup has raised its price target from $27.00 to $37.00, assigning a "buy" rating, indicating differing investor outlooks on the company's stock value.

DAQO New Energy (NYSE:DQ - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Tuesday.

Several other equities research analysts have also commented on DQ. HSBC raised DAQO New Energy from a "hold" rating to a "buy" rating and set a $31.00 price target on the stock in a research note on Wednesday, August 27th. Roth Capital restated a "neutral" rating and set a $25.00 target price on shares of DAQO New Energy in a research note on Thursday. Glj Research reissued a "buy" rating and issued a $30.51 target price on shares of DAQO New Energy in a report on Tuesday, August 26th. The Goldman Sachs Group lowered shares of DAQO New Energy from a "neutral" rating to a "sell" rating in a research note on Thursday. Finally, Citigroup raised their price objective on shares of DAQO New Energy from $27.00 to $37.00 and gave the stock a "buy" rating in a research note on Monday, September 8th. Two investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, DAQO New Energy has an average rating of "Moderate Buy" and a consensus target price of $25.84.

DAQO New Energy Stock Down 2.0%

DQ opened at $26.69 on Tuesday. DAQO New Energy has a 52 week low of $12.40 and a 52 week high of $30.85. The business has a fifty day simple moving average of $23.77 and a 200-day simple moving average of $18.38. The firm has a market cap of $1.79 billion, a P/E ratio of -4.57 and a beta of 0.50.

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

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

Institutional Investors Weigh In On DAQO New Energy

Several large investors have recently bought and sold shares of DQ. Squarepoint Ops LLC increased its position in shares of DAQO New Energy by 34.0% during the second quarter. Squarepoint Ops LLC now owns 51,516 shares of the semiconductor company's stock worth $781,000 after acquiring an additional 13,072 shares in the last quarter. Marex Group plc acquired a new position in DAQO New Energy during the second quarter worth $356,000. Headlands Technologies LLC acquired a new position in DAQO New Energy during the second quarter worth $29,000. Scoggin Management LP acquired a new position in DAQO New Energy during the second quarter worth $1,517,000. Finally, BNP Paribas Financial Markets boosted its holdings in DAQO New Energy by 137.6% during the second quarter. BNP Paribas Financial Markets now owns 401,919 shares of the semiconductor company's stock worth $6,097,000 after purchasing an additional 232,759 shares during the last quarter. Institutional investors own 47.22% of the company's stock.

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.

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