DAQO New Energy (NYSE:DQ) Posts Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• DAQO New Energy reported a quarterly earnings per share (EPS) of ($1.14), exceeding analyst expectations of ($1.16) by $0.02.
• The company saw significant institutional investor activity, with a 267.0% increase in Bank of America’s holdings during the second quarter.
• Analysts have varying views on the stock, with ratings ranging from Strong Buy to Hold, and a consensus target price of $21.42.

DAQO New Energy (NYSE:DQ - Get Free Report) released its earnings results on Tuesday. The semiconductor company reported ($1.14) EPS for the quarter, beating the consensus estimate of ($1.16) by $0.02, Zacks reports. The company had revenue of $75.19 million during the quarter, compared to analysts' expectations of $140.54 million. DAQO New Energy had a negative return on equity of 6.54% and a negative net margin of 65.64%.

DAQO New Energy Trading Up 12.1%

DQ stock traded up $2.75 during trading hours on Friday, hitting $25.59. 2,673,604 shares of the stock traded hands, compared to its average volume of 886,372. The stock has a 50-day simple moving average of $20.67 and a 200 day simple moving average of $17.72. DAQO New Energy has a one year low of $12.40 and a one year high of $30.85. The company has a market cap of $1.72 billion, a P/E ratio of -4.38 and a beta of 0.48.

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

Hedge Funds Weigh In On DAQO New Energy

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Headlands Technologies LLC purchased a new stake in DAQO New Energy in the 2nd quarter worth about $29,000. Scoggin Management LP purchased a new stake in DAQO New Energy in the 2nd quarter worth about $1,517,000. BNP Paribas Financial Markets lifted its stake in DAQO New Energy by 137.6% in the 2nd quarter. BNP Paribas Financial Markets now owns 401,919 shares of the semiconductor company's stock worth $6,097,000 after acquiring an additional 232,759 shares in the last quarter. Bank of America Corp DE lifted its stake in 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 worth $2,940,000 after acquiring an additional 141,004 shares in the last quarter. Finally, Jump Financial LLC lifted its stake in DAQO New Energy by 78.0% in the 2nd quarter. Jump Financial LLC now owns 212,200 shares of the semiconductor company's stock worth $3,219,000 after acquiring an additional 92,954 shares in the last quarter. Institutional investors and hedge funds own 47.22% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. Hsbc Global Res raised DAQO New Energy from a "hold" rating to a "strong-buy" rating in a research report on Wednesday. Glj Research reaffirmed a "buy" rating and issued a $30.51 target price on shares of DAQO New Energy in a research report on Tuesday, August 26th. 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 report on Wednesday. Wall Street Zen raised DAQO New Energy from a "strong sell" rating to a "hold" rating in a report on Saturday. Finally, Citigroup assumed coverage on DAQO New Energy in a 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 given a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, DAQO New Energy currently has an average rating of "Buy" and a consensus price target of $26.10.

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.