DAQO New Energy (NYSE:DQ) Stock Rating Upgraded by Wall Street Zen

Key Points

• DAQO New Energy has received an upgrade from Wall Street Zen, moving from a "sell" rating to a "hold" rating, while other analysts maintain mixed evaluations.
• The company recently reported earnings of ($1.14) per share, which slightly beat analysts' expectations, but revenue fell short at $75.19 million.
• A stock buyback program has been initiated, signaling management's belief that the stock may be undervalued in the market.

DAQO New Energy (NYSE:DQ - Get Free Report) was upgraded by Wall Street Zen from a "sell" rating to a "hold" rating in a report released on Saturday.

Several other analysts have also weighed in on the company. Weiss Ratings reissued a "sell (d)" rating on shares of DAQO New Energy in a report on Wednesday, October 8th. Citigroup boosted their price objective on DAQO New Energy from $27.00 to $37.00 and gave the company a "buy" rating in a report on Monday, September 8th. Glj Research reissued a "buy" rating and issued a $30.51 price objective on shares of DAQO New Energy in a report on Tuesday, August 26th. Roth Capital reaffirmed a "neutral" rating and set a $25.00 target price on shares of DAQO New Energy in a report on Thursday, September 18th. Finally, New Street Research set a $15.40 target price on DAQO New Energy in a report on Thursday, September 18th. Two analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $25.99.

DAQO New Energy Stock Performance

DAQO New Energy stock opened at $26.79 on Friday. The company has a market capitalization of $1.80 billion, a price-to-earnings ratio of -4.59 and a beta of 0.60. DAQO New Energy has a fifty-two week low of $12.40 and a fifty-two week high of $31.21. The stock has a fifty day moving average of $25.95 and a two-hundred day moving average of $19.54.

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

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

Hedge Funds Weigh In On DAQO New Energy

Hedge funds and other institutional investors have recently made changes to their positions in the business. XTX Topco Ltd acquired a new stake in DAQO New Energy in the first quarter worth approximately $316,000. Vanguard Group Inc. lifted its position in 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 purchasing an additional 26,359 shares during the period. Charles Schwab Investment Management Inc. lifted its position in DAQO New Energy by 227.3% in the first quarter. Charles Schwab Investment Management Inc. now owns 162,085 shares of the semiconductor company's stock worth $2,935,000 after purchasing an additional 112,562 shares during the period. Virtu Financial LLC acquired a new stake in DAQO New Energy in the first quarter worth approximately $187,000. Finally, Nuveen LLC acquired a new stake in DAQO New Energy in the first quarter worth approximately $837,000. 47.22% of the stock is currently owned by institutional investors and hedge funds.

About DAQO New Energy

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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