DAQO New Energy (NYSE:DQ) Shares Down 3.5% on Disappointing Earnings

Key Points

• DAQO New Energy shares fell 3.5% after the company reported a quarterly loss of $1.20 per ADS, missing the $0.57 consensus estimate, despite revenue of $62.66 million exceeding forecasts.
• Polysilicon sales volumes and revenue rebounded sharply, but the average selling price dropped to $4.04 per kilogram—below production costs—driving an $82.7 million gross loss and a negative 132% gross margin.
• Management projects 2026 polysilicon production of 160,000–180,000 tons, while the company retains approximately $1.92 billion in liquidity; analysts maintain a consensus “Hold” rating with an average price target of $22.35.

DAQO New Energy Corp. (NYSE:DQ - Get Free Report)'s stock price fell 3.5% during trading on Friday following a dissappointing earnings announcement. The stock traded as low as $14.45 and last traded at $14.46. 101,374 shares were traded during mid-day trading, a decline of 88% from the average daily volume of 842,243 shares. The stock had previously closed at $14.98.

The semiconductor company reported ($1.20) earnings per share for the quarter, missing the consensus estimate of ($0.57) by ($0.63). The firm had revenue of $62.66 million during the quarter, compared to analyst estimates of $52.93 million. DAQO New Energy had a negative net margin of 32.92% and a negative return on equity of 3.19%.

DAQO New Energy News Roundup

Here are the key news stories impacting DAQO New Energy this week:

• Positive Sentiment: Polysilicon sales volume rebounded to 15,190 metric tons from 4,482 metric tons in the first quarter, while revenue rose to $62.7 million from $26.7 million and exceeded analyst expectations. Why Did Daqo New Energy Sales Volume Rebound This Quarter?
• Positive Sentiment: Management expects 2026 polysilicon production of approximately 160,000–180,000 tons, potentially positioning DQ to benefit from long-term solar and artificial-intelligence data-center power demand. Production costs remained stable at $5.95 per kilogram, and cash costs edged lower to $4.57 per kilogram. Daqo Projects 2026 Polysilicon Output
• Neutral Sentiment: Liquidity remains a significant cushion, with cash, short-term investments and related holdings totaling approximately $1.92 billion at the end of the quarter, though this declined from $2.00 billion in the prior quarter. Daqo New Energy Second-Quarter 2026 Results
• Negative Sentiment: DQ reported a loss of $1.20 per ADS, significantly worse than analyst expectations, despite the revenue beat. The result compared with a $1.14 loss in the year-ago quarter. Daqo New Energy Reports Second-Quarter Loss
• Negative Sentiment: The average selling price fell to $4.04 per kilogram from $5.96, well below total production costs. As a result, gross loss reached $82.7 million and gross margin was negative 132%, reinforcing concerns about prolonged polysilicon oversupply and pricing pressure. Daqo Shares Tumble After Earnings Miss

Analyst Ratings Changes

Several research analysts have issued reports on DQ shares. The Goldman Sachs Group reissued a "neutral" rating and set a $11.20 price objective on shares of DAQO New Energy in a research report on Monday, July 27th. Wall Street Zen cut shares of DAQO New Energy from a "hold" rating to a "strong sell" rating in a report on Saturday, May 2nd. JPMorgan Chase & Co. decreased their target price on shares of DAQO New Energy from $35.50 to $22.00 and set an "overweight" rating for the company in a research note on Friday, July 31st. Weiss Ratings raised DAQO New Energy from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, August 11th. Finally, Zacks Research cut DAQO New Energy from a "hold" rating to a "strong sell" rating in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, DAQO New Energy currently has an average rating of "Hold" and an average price target of $22.35.

Hedge Funds Weigh In On DAQO New Energy

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Quarry LP purchased a new position in DAQO New Energy during the 3rd quarter worth $26,000. Headlands Technologies LLC purchased a new stake in shares of DAQO New Energy in the second quarter valued at about $29,000. Farther Finance Advisors LLC increased its stake in shares of DAQO New Energy by 1,650.0% during the fourth quarter. Farther Finance Advisors LLC now owns 1,330 shares of the semiconductor company's stock worth $39,000 after acquiring an additional 1,254 shares during the period. Caitong International Asset Management Co. Ltd acquired a new position in shares of DAQO New Energy during the fourth quarter worth about $49,000. Finally, Banque Cantonale Vaudoise raised its holdings in DAQO New Energy by 37.5% during the first quarter. Banque Cantonale Vaudoise now owns 2,579 shares of the semiconductor company's stock worth $55,000 after purchasing an additional 703 shares in the last quarter. 47.22% of the stock is currently owned by hedge funds and other institutional investors.

DAQO New Energy Stock Down 6.4%

The firm's fifty day moving average is $13.18 and its 200-day moving average is $18.27. The stock has a market capitalization of $948.73 million, a PE ratio of -5.04 and a beta of 0.66.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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