DAQO New Energy (NYSE:DQ) Trading Down 6.6% - What's Next?

Key Points

• DAQO New Energy's stock price has decreased by 6.6%, closing at $23.40 after trading as low as $23.45, with a significant 21% decline in trading volume.
• Analyst ratings have fluctuated, with HSBC cutting the company’s rating from "strong-buy" to "hold" and Goldman Sachs downgrading it from "buy" to "neutral", setting a target price of $17.00.
• The company's recent earnings report showed a loss of $1.07 per share, which was worse than the analysts' expectations, accompanied by a negative return on equity of 7.16%.
• Institutional investors have recently shown increased activity in DAQO New Energy, with notable stake increases, including an extraordinary 86,700% increase by Caitong International Asset Management.

DAQO New Energy Corp. (NYSE:DQ - Get Free Report)'s stock price was down 6.6% during trading on Friday . The company traded as low as $23.45 and last traded at $23.40. Approximately 767,333 shares were traded during trading, a decline of 21% from the average daily volume of 969,659 shares. The stock had previously closed at $25.05.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on DQ shares. Hsbc Global Res cut DAQO New Energy from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, April 30th. The Goldman Sachs Group cut DAQO New Energy from a "buy" rating to a "neutral" rating and set a $17.00 target price on the stock. in a research report on Tuesday, April 15th. Citigroup started coverage on shares of DAQO New Energy in a research note on Friday, July 18th. They issued a "buy" rating and a $27.00 price target on the stock. Glj Research raised shares of DAQO New Energy from a "sell" rating to a "buy" rating and set a $30.51 price target on the stock in a research note on Thursday, July 10th. Finally, Wall Street Zen raised shares of DAQO New Energy to a "sell" rating in a research note on Monday, April 21st. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating, four have assigned a buy rating and two have issued a strong buy rating to the company's stock. According to data from MarketBeat.com, DAQO New Energy has an average rating of "Moderate Buy" and a consensus target price of $23.22.

DAQO New Energy Stock Performance

The stock's 50 day simple moving average is $16.27 and its two-hundred day simple moving average is $17.14. The firm has a market capitalization of $1.56 billion, a PE ratio of -3.57 and a beta of 0.60.

DAQO New Energy (NYSE:DQ - Get Free Report) last released its earnings results on Tuesday, April 29th. The semiconductor company reported ($1.07) earnings per share for the quarter, missing analysts' consensus estimates of ($1.02) by ($0.05). DAQO New Energy had a negative return on equity of 7.16% and a negative net margin of 58.63%. The business had revenue of $123.91 million during the quarter, compared to analysts' expectations of $176.81 million. Equities research analysts expect that DAQO New Energy Corp. will post -3.5 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd lifted its stake in DAQO New Energy by 86,700.0% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 1,736 shares of the semiconductor company's stock worth $31,000 after purchasing an additional 1,734 shares in the last quarter. Virtu Financial LLC purchased a new stake in shares of DAQO New Energy during the 1st quarter valued at approximately $187,000. Vident Advisory LLC purchased a new stake in shares of DAQO New Energy during the 1st quarter valued at approximately $216,000. Diametric Capital LP raised its position in shares of DAQO New Energy by 25.5% during the 4th quarter. Diametric Capital LP now owns 16,018 shares of the semiconductor company's stock valued at $311,000 after buying an additional 3,255 shares during the period. Finally, Harvest Portfolios Group Inc. purchased a new stake in shares of DAQO New Energy during the 1st quarter valued at approximately $305,000. 47.22% of the stock is owned by hedge funds and other institutional investors.

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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