DAQO New Energy (NYSE:DQ) Stock Price Down 4.6% After Analyst Downgrade

Key Points

• DAQO New Energy's stock price fell 4.6% following a downgrade from Wall Street Zen, which changed its rating from hold to sell.
• Despite the downgrade, other analysts have shown mixed outlooks, with Citigroup increasing their price target to $37.00 and maintaining a buy rating.
• Institutional investors have made significant moves in DAQO, with Goldman Sachs increasing its stake by 117.2%, indicating heightened interest in the semiconductor company's stocks.

DAQO New Energy Corp. (NYSE:DQ - Get Free Report)'s stock price dropped 4.6% during mid-day trading on Tuesday after Wall Street Zen downgraded the stock from a hold rating to a sell rating. The stock traded as low as $25.61 and last traded at $25.45. Approximately 203,322 shares changed hands during trading, a decline of 80% from the average daily volume of 1,025,062 shares. The stock had previously closed at $26.68.

Several other analysts have also recently weighed in on DQ. Citigroup upped their price objective on shares of DAQO New Energy from $27.00 to $37.00 and gave the stock a "buy" rating in a research note on Monday, September 8th. Glj Research reaffirmed a "buy" rating and set a $30.51 price objective on shares of DAQO New Energy in a research note on Tuesday, August 26th. Roth Capital reaffirmed a "neutral" rating and set a $25.00 price objective on shares of DAQO New Energy in a research note on Thursday. Hsbc Global Res raised shares of DAQO New Energy from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 27th. Finally, New Street Research set a $15.40 price objective on shares of DAQO New Energy in a research note on Thursday, September 18th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $25.84.

Hedge Funds Weigh In On DAQO New Energy

Several large investors have recently bought and sold shares of the business. Goldman Sachs Group Inc. increased its stake in 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 valued at $21,005,000 after purchasing an additional 625,900 shares in the last quarter. SG Americas Securities LLC bought a new stake in DAQO New Energy in the first quarter valued at approximately $9,372,000. Hsbc Holdings PLC increased its stake in DAQO New Energy by 514.3% in the first quarter. Hsbc Holdings PLC now owns 501,145 shares of the semiconductor company's stock valued at $9,026,000 after purchasing an additional 419,569 shares in the last quarter. Millennium Management LLC increased its stake in 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 purchasing an additional 328,541 shares in the last quarter. Finally, BNP Paribas Financial Markets increased its stake in DAQO New Energy by 137.6% in the second quarter. BNP Paribas Financial Markets now owns 401,919 shares of the semiconductor company's stock valued at $6,097,000 after purchasing an additional 232,759 shares in the last quarter. 47.22% of the stock is currently owned by institutional investors and hedge funds.

DAQO New Energy Price Performance

The stock has a market cap of $1.69 billion, a P/E ratio of -4.34 and a beta of 0.50. The company's 50 day simple moving average is $23.77 and its 200 day simple moving average is $18.38.

DAQO New Energy (NYSE:DQ - Get Free Report) last issued its earnings results on Tuesday, August 26th. The semiconductor company reported ($1.14) EPS for the quarter, beating the consensus estimate of ($1.16) by $0.02. DAQO New Energy had a negative net margin of 65.64% and a negative return on equity of 6.54%. The firm had revenue of $75.19 million during the quarter, compared to the consensus estimate of $140.54 million. On average, equities research analysts predict that DAQO New Energy Corp. will post -3.5 earnings per share for the current year.

DAQO New Energy announced that its Board of Directors has approved a share repurchase program on Tuesday, August 26th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the semiconductor company to purchase shares of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its stock is undervalued.

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.

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