DAQO New Energy (NYSE:DQ) Rating Lowered to Sell at Wall Street Zen

Key Points

• DAQO New Energy's stock rating has been downgraded from "hold" to "sell" by Wall Street Zen, indicating a negative outlook for the company.
• Despite the downgrade, other analysts** have maintained a positive stance, with a "buy" rating and a consensus target price of $26.10.
• The company's recent quarterly earnings report showed a revenue of $75.19 million, significantly below the consensus estimate of $140.54 million, highlighting financial challenges.

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

Several other research firms also recently commented on DQ. Glj Research reaffirmed a "buy" rating and set a $30.51 price objective on shares of DAQO New Energy in a report on Tuesday, August 26th. Hsbc Global Res upgraded shares of DAQO New Energy from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 27th. HSBC upgraded shares of DAQO New Energy from a "hold" rating to a "buy" rating and set a $31.00 price target on the stock in a research report on Wednesday, August 27th. Finally, Citigroup began coverage on shares of DAQO New Energy in a research report on Friday, July 18th. They set a "buy" rating and a $27.00 price target on the stock. Two investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Buy" and a consensus target price of $26.10.

DAQO New Energy Stock Performance

Shares of NYSE:DQ opened at $29.21 on Friday. The company's 50-day moving average is $21.91 and its 200 day moving average is $17.90. The company has a market capitalization of $1.96 billion, a P/E ratio of -5.00 and a beta of 0.50. DAQO New Energy has a fifty-two week low of $12.40 and a fifty-two week high of $30.85.

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

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

Hedge Funds Weigh In On DAQO New Energy

Several institutional investors and hedge funds have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd increased its holdings 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 acquiring an additional 1,734 shares in the last quarter. Headlands Technologies LLC purchased a new position in DAQO New Energy in the second quarter worth about $29,000. Nuveen Asset Management LLC boosted its position in DAQO New Energy by 16.7% in the fourth quarter. Nuveen Asset Management LLC now owns 39,200 shares of the semiconductor company's stock worth $762,000 after purchasing an additional 5,600 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in shares of DAQO New Energy by 39.1% during the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 31,364 shares of the semiconductor company's stock valued at $476,000 after buying an additional 8,815 shares in the last quarter. Finally, American Century Companies Inc. lifted its position in shares of DAQO New Energy by 4.7% during the 1st quarter. American Century Companies Inc. now owns 220,623 shares of the semiconductor company's stock valued at $3,995,000 after buying an additional 9,885 shares in the last quarter. 47.22% of the stock is currently owned by institutional investors.

DAQO New Energy Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.