Daqo New Energy (NYSE:DQ) Shares Gap Down on Disappointing Earnings

Daqo New Energy Corp. (NYSE:DQ - Get Free Report)'s share price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $14.81, but opened at $14.13. Daqo New Energy shares last traded at $13.08, with a volume of 226,969 shares traded.

The semiconductor company reported ($1.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.02) by ($0.05). The firm had revenue of $123.91 million for the quarter, compared to analysts' expectations of $176.81 million. Daqo New Energy had a negative return on equity of 1.90% and a negative net margin of 9.16%.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on DQ shares. StockNews.com raised shares of Daqo New Energy to a "sell" rating in a research note on Monday, April 21st. The Goldman Sachs Group cut shares of Daqo New Energy from a "buy" rating to a "neutral" rating and set a $17.00 price objective for the company. in a research note on Tuesday, April 15th. HSBC lowered shares of Daqo New Energy from a "buy" rating to a "hold" rating and set a $14.00 target price on the stock. in a research note on Wednesday. Finally, Hsbc Global Res cut Daqo New Energy from a "strong-buy" rating to a "hold" rating in a report on Wednesday. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating, two have issued a buy rating and two have given a strong buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $21.01.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Generali Investments CEE investicni spolecnost a.s. purchased a new position in Daqo New Energy during the fourth quarter worth about $52,000. Diametric Capital LP increased its position in shares of Daqo New Energy by 25.5% in the 4th quarter. Diametric Capital LP now owns 16,018 shares of the semiconductor company's stock valued at $311,000 after purchasing an additional 3,255 shares during the last quarter. Van ECK Associates Corp raised its stake in Daqo New Energy by 7.6% in the fourth quarter. Van ECK Associates Corp now owns 20,067 shares of the semiconductor company's stock valued at $390,000 after buying an additional 1,410 shares in the last quarter. Polymer Capital Management HK LTD purchased a new stake in Daqo New Energy during the fourth quarter worth approximately $404,000. Finally, Geode Capital Management LLC lifted its position in shares of Daqo New Energy by 9.2% during the 3rd quarter. Geode Capital Management LLC now owns 33,546 shares of the semiconductor company's stock worth $683,000 after buying an additional 2,813 shares during the last quarter. 47.22% of the stock is currently owned by hedge funds and other institutional investors.

Daqo New Energy Price Performance

The firm's 50 day simple moving average is $16.74 and its 200-day simple moving average is $18.90. The company has a market cap of $849.51 million, a price-to-earnings ratio of -6.96 and a beta of 0.37.

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.