DAQO New Energy (NYSE:DQ) Trading 5.6% Higher - What's Next?

Key Points

• DAQO New Energy shares rose 5.6% to about $14.34, although trading volume was 49% below the stock’s average daily volume.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with a $22.35 target price, while several firms recently downgraded the stock to “strong sell.”
• The company’s latest quarter missed EPS expectations, reporting a $1.20 loss per share versus a projected $0.57 loss, despite revenue of $62.66 million exceeding estimates.

Shares of DAQO New Energy Corp. (NYSE:DQ - Get Free Report) rose 5.6% during trading on Monday . The company traded as high as $14.36 and last traded at $14.3410. 432,688 shares were traded during trading, a decline of 49% from the average daily volume of 849,113 shares. The stock had previously closed at $13.58.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on DQ. Roth Capital set a $19.00 target price on DAQO New Energy in a report on Thursday, April 30th. JPMorgan Chase & Co. cut their price objective on DAQO New Energy from $35.50 to $22.00 and set an "overweight" rating on the stock in a report on Friday, July 31st. Wall Street Zen lowered DAQO New Energy from a "hold" rating to a "strong sell" rating in a research note on Saturday, May 2nd. Weiss Ratings raised shares of DAQO New Energy from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, August 11th. Finally, Zacks Research lowered shares of DAQO New Energy from a "hold" rating to a "strong sell" rating in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, DAQO New Energy currently has a consensus rating of "Hold" and a consensus target price of $22.35.

DAQO New Energy Trading Up 6.6%

The company has a market capitalization of $979.52 million, a PE ratio of -5.10 and a beta of 0.66. The business's 50-day simple moving average is $13.14 and its two-hundred day simple moving average is $18.19.

DAQO New Energy (NYSE:DQ - Get Free Report) last issued its quarterly earnings results on Thursday, August 20th. The semiconductor company reported ($1.20) EPS for the quarter, missing analysts' consensus estimates of ($0.57) by ($0.63). DAQO New Energy had a negative net margin of 34.50% and a negative return on equity of 3.26%. The business had revenue of $62.66 million during the quarter, compared to analysts' expectations of $52.93 million. On average, analysts forecast that DAQO New Energy Corp. will post -1.96 EPS for the current year.

Institutional Investors Weigh In On DAQO New Energy

Several hedge funds and other institutional investors have recently modified their holdings of DQ. Arrowstreet Capital Limited Partnership bought a new position in DAQO New Energy during the 3rd quarter worth $18,280,000. Goldman Sachs Group Inc. boosted its position 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 buying an additional 625,900 shares during the period. Marshall Wace LLP purchased a new position in shares of DAQO New Energy during the fourth quarter valued at $16,742,000. Millennium Management LLC raised its position in DAQO New Energy by 1,261.0% during the first quarter. Millennium Management LLC now owns 354,596 shares of the semiconductor company's stock valued at $6,422,000 after buying an additional 328,541 shares during the period. Finally, Invesco Ltd. lifted its stake in DAQO New Energy by 22.6% in the 4th quarter. Invesco Ltd. now owns 1,429,565 shares of the semiconductor company's stock worth $42,172,000 after acquiring an additional 263,614 shares in the last quarter. 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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