DAQO New Energy (NYSE:DQ) Shares Gap Up - Here's What Happened

Key Points

• DAQO New Energy shares gapped up from a previous close of $22.94 to open at $23.96 but last traded at $23.01, indicating volatility in the stock's performance.
• Analysts have mixed ratings on DAQO New Energy, with Citigroup and Glj Research issuing "buy" ratings and target prices of $27.00 and $30.51, respectively, while HSBC downgraded it to "hold" with a $14.00 target.
• The company reported a quarterly earnings miss with an EPS of ($1.07), falling short of analyst expectations, and has a consensus rating of "Moderate Buy" with a target price of $23.22.

DAQO New Energy Corp. (NYSE:DQ - Get Free Report)'s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $22.94, but opened at $23.96. DAQO New Energy shares last traded at $23.01, with a volume of 658,037 shares.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on DQ. The Goldman Sachs Group cut DAQO New Energy from a "buy" rating to a "neutral" rating and set a $17.00 target price for the company. in a research report on Tuesday, April 15th. Citigroup assumed coverage on DAQO New Energy in a research report on Friday, July 18th. They set a "buy" rating and a $27.00 price objective for the company. Glj Research raised DAQO New Energy from a "sell" rating to a "buy" rating and set a $30.51 price objective for the company in a research report on Thursday, July 10th. Wall Street Zen raised DAQO New Energy to a "sell" rating in a research report on Monday, April 21st. Finally, HSBC cut DAQO New Energy from a "buy" rating to a "hold" rating and set a $14.00 price objective for the company. in a research report on Wednesday, April 30th. One analyst has rated the stock with a sell rating, four have assigned a hold rating, four have issued a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, DAQO New Energy currently has a consensus rating of "Moderate Buy" and a consensus price target of $23.22.

DAQO New Energy Trading Down 3.4%

The stock has a market capitalization of $1.41 billion, a price-to-earnings ratio of -3.22 and a beta of 0.60. The stock's 50 day moving average is $17.14 and its 200 day moving average is $17.23.

DAQO New Energy (NYSE:DQ - Get Free Report) last posted its quarterly earnings data on Tuesday, April 29th. The semiconductor company reported ($1.07) EPS for the quarter, missing analysts' consensus estimates of ($1.02) by ($0.05). The company had revenue of $123.91 million for the quarter, compared to analyst estimates of $176.81 million. DAQO New Energy had a negative net margin of 58.63% and a negative return on equity of 7.16%. On average, sell-side analysts anticipate that DAQO New Energy Corp. will post -3.5 EPS for the current year.

Institutional Trading of DAQO New Energy

A number of large investors have recently made changes to their positions in DQ. Continental General Insurance Co. grew its position in shares of DAQO New Energy by 0.8% in the first quarter. Continental General Insurance Co. now owns 5,966,202 shares of the semiconductor company's stock valued at $108,048,000 after purchasing an additional 50,000 shares during the period. Vanguard Group Inc. lifted its stake in shares of DAQO New Energy by 1.5% in the first quarter. Vanguard Group Inc. now owns 1,745,544 shares of the semiconductor company's stock worth $31,612,000 after acquiring an additional 26,359 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in shares of DAQO New Energy by 117.2% in the first 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 in the last quarter. Point72 Asset Management L.P. lifted its stake in shares of DAQO New Energy by 67.5% in the fourth quarter. Point72 Asset Management L.P. now owns 886,655 shares of the semiconductor company's stock worth $17,237,000 after acquiring an additional 357,460 shares in the last quarter. Finally, Prudential PLC lifted its stake in shares of DAQO New Energy by 11.8% in the first quarter. Prudential PLC now owns 849,471 shares of the semiconductor company's stock worth $15,384,000 after acquiring an additional 89,431 shares in the last quarter. Institutional investors and hedge funds own 47.22% of the company's stock.

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.