DAQO New Energy (NYSE:DQ) Shares Gap Up - Should You Buy?

Key Points

• DAQO New Energy shares opened sharply higher, rising from a prior close of $12.17 to $12.85 and last trading at $13.71. The stock remains below its 200-day moving average of $19.40.
• Analyst sentiment is mixed, with a consensus rating of “Hold” and an average price target of $22.35. Recent actions included JPMorgan cutting its target to $22 while maintaining an “overweight” rating, and other firms issuing ratings ranging from “strong buy” to “strong sell.”
• Institutional investors own 47.22% of the company, with several major funds increasing or initiating positions. DAQO manufactures high-purity polysilicon and silicon wafers used in the global solar photovoltaic industry.

Shares of DAQO New Energy Corp. (NYSE:DQ - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $12.17, but opened at $12.85. DAQO New Energy shares last traded at $13.71, with a volume of 174,508 shares traded.

Wall Street Analyst Weigh In

DQ has been the subject of several research analyst reports. Roth Capital set a $19.00 target price on shares of DAQO New Energy in a research report on Thursday, April 30th. Weiss Ratings cut shares of DAQO New Energy from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, July 24th. Wall Street Zen downgraded shares of DAQO New Energy from a "hold" rating to a "strong sell" rating in a report on Saturday, May 2nd. JPMorgan Chase & Co. cut 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 report on Friday. Finally, Zacks Research raised DAQO New Energy from a "strong sell" rating to a "hold" rating in a research note on Monday, June 29th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $22.35.

DAQO New Energy Price Performance

The company has a 50 day simple moving average of $13.77 and a 200-day simple moving average of $19.40. The firm has a market cap of $903.21 million, a PE ratio of -4.81 and a beta of 0.65.

Hedge Funds Weigh In On DAQO New Energy

A number of large investors have recently added to or reduced their stakes in the business. Arrowstreet Capital Limited Partnership purchased a new stake in DAQO New Energy during the 3rd quarter valued at $18,280,000. Goldman Sachs Group Inc. grew its holdings in DAQO New Energy by 117.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,159,835 shares of the semiconductor company's stock worth $21,005,000 after acquiring an additional 625,900 shares during the last quarter. Marshall Wace LLP purchased a new position in shares of DAQO New Energy in the fourth quarter valued at about $16,742,000. Millennium Management LLC increased its position in shares of DAQO New Energy by 1,261.0% in the first quarter. Millennium Management LLC now owns 354,596 shares of the semiconductor company's stock valued at $6,422,000 after acquiring an additional 328,541 shares during the period. Finally, SG Americas Securities LLC raised its position in DAQO New Energy by 118.6% during the 4th quarter. SG Americas Securities LLC now owns 42,788 shares of the semiconductor company's stock valued at $1,262,000 after purchasing an additional 272,568 shares during the last quarter. Hedge funds and other institutional investors own 47.22% of the company's stock.

DAQO New Energy Company Profile

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.

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