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.

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

Analysts Set New Price Targets

Several research analysts recently weighed in on DQ shares. The Goldman Sachs Group downgraded DAQO New Energy from a "buy" rating to a "neutral" rating and set a $17.00 target price on the stock. in a research note on Tuesday, April 15th. Glj Research upgraded DAQO New Energy from a "sell" rating to a "buy" rating and set a $30.51 target price on the stock in a research note on Thursday, July 10th. Hsbc Global Res downgraded DAQO New Energy from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, April 30th. Citigroup began coverage on DAQO New Energy in a research report on Friday, July 18th. They set a "buy" rating and a $27.00 price target for the company. Finally, HSBC cut DAQO New Energy from a "buy" rating to a "hold" rating and set a $14.00 price target for the company. in a research report on Wednesday, April 30th. One analyst has rated the stock with a sell rating, four have given a hold rating, four have given a buy rating and two have assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $23.22.

DAQO New Energy Trading Up 1.9%

The firm has a market cap of $1.57 billion, a price-to-earnings ratio of -3.59 and a beta of 0.60. The company has a fifty day moving average price of $16.62 and a 200-day moving average price of $17.13.

DAQO New Energy (NYSE:DQ - Get Free Report) last issued its quarterly earnings data on Tuesday, April 29th. The semiconductor company reported ($1.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.02) by ($0.05). The company had revenue of $123.91 million during 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%. As a group, research analysts forecast that DAQO New Energy Corp. will post -3.5 earnings per share for the current fiscal year.

Hedge Funds Weigh In On DAQO New Energy

Institutional investors and hedge funds have recently modified their holdings of the stock. American Century Companies Inc. increased its stake in shares of DAQO New Energy by 9.3% in the 4th quarter. American Century Companies Inc. now owns 210,738 shares of the semiconductor company's stock valued at $4,097,000 after purchasing an additional 17,880 shares in the last quarter. O Shaughnessy Asset Management LLC increased its stake in shares of DAQO New Energy by 37.2% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 45,788 shares of the semiconductor company's stock valued at $890,000 after purchasing an additional 12,409 shares in the last quarter. Diametric Capital LP increased its stake in shares of DAQO New Energy by 25.5% in the 4th quarter. Diametric Capital LP now owns 16,018 shares of the semiconductor company's stock valued at $311,000 after purchasing an additional 3,255 shares in the last quarter. Prudential PLC purchased a new stake in DAQO New Energy during the 4th quarter worth approximately $14,775,000. Finally, Russell Investments Group Ltd. increased its stake in DAQO New Energy by 64.3% during the 4th quarter. Russell Investments Group Ltd. now owns 295,514 shares of the semiconductor company's stock worth $5,745,000 after buying an additional 115,674 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.