DAQO New Energy (NYSE:DQ) Trading Up 10.3% - Should You Buy?

Key Points

• DAQO New Energy's stock price rose by 10.3% during mid-day trading on Wednesday, reaching $27.46, despite a significant drop in trading volume compared to its average.
• Analyst ratings for DAQO New Energy have been mixed, with Goldman Sachs downgrading to "sell" while HSBC upgraded to "buy" with a target price of $31.00.
• The company reported a negative net margin of 65.64% and a revenue of $75.19 million, significantly below the consensus estimate of $140.54 million for the quarter.

Shares of DAQO New Energy Corp. (NYSE:DQ - Get Free Report) were up 10.3% during mid-day trading on Wednesday . The company traded as high as $27.31 and last traded at $27.46. Approximately 263,749 shares traded hands during trading, a decline of 74% from the average daily volume of 1,026,174 shares. The stock had previously closed at $24.89.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on DQ shares. The Goldman Sachs Group cut shares of DAQO New Energy from a "neutral" rating to a "sell" rating in a research report on Thursday, September 18th. HSBC upgraded shares of DAQO New Energy from a "hold" rating to a "buy" rating and set a $31.00 target price on the stock in a report on Wednesday, August 27th. Hsbc Global Res raised shares of DAQO New Energy from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 27th. Citigroup raised their price objective on shares of DAQO New Energy from $27.00 to $37.00 and gave the stock a "buy" rating in a report on Monday, September 8th. Finally, Wall Street Zen downgraded shares of DAQO New Energy from a "hold" rating to a "sell" rating in a report on Tuesday. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, DAQO New Energy presently has an average rating of "Moderate Buy" and an average price target of $25.84.

DAQO New Energy Stock Performance

The company's fifty day moving average price is $23.87 and its 200-day moving average price is $18.42. The stock has a market cap of $1.90 billion, a P/E ratio of -4.89 and a beta of 0.50.

DAQO New Energy (NYSE:DQ - Get Free Report) last posted its earnings results on Tuesday, August 26th. The semiconductor company reported ($1.14) EPS for the quarter, beating analysts' consensus estimates 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 business had revenue of $75.19 million for the quarter, compared to the consensus estimate of $140.54 million. Analysts anticipate that DAQO New Energy Corp. will post -3.5 earnings per share for the current fiscal year.

DAQO New Energy announced that its board has approved a stock repurchase plan on Tuesday, August 26th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the semiconductor company to purchase shares of its stock through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its shares are undervalued.

Hedge Funds Weigh In On DAQO New Energy

A number of large investors have recently added to or reduced their stakes in DQ. Nuveen Asset Management LLC raised its position in shares of DAQO New Energy by 16.7% in the fourth quarter. Nuveen Asset Management LLC now owns 39,200 shares of the semiconductor company's stock valued at $762,000 after buying an additional 5,600 shares during the last quarter. SG Americas Securities LLC purchased a new stake in shares of DAQO New Energy in the first quarter valued at about $9,372,000. XTX Topco Ltd purchased a new stake in shares of DAQO New Energy in the first quarter valued at about $316,000. Vanguard Group Inc. grew its holdings in shares of 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 valued at $31,612,000 after purchasing an additional 26,359 shares during the period. Finally, Charles Schwab Investment Management Inc. grew its holdings in shares of 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 valued at $2,935,000 after purchasing an additional 112,562 shares during the period. 47.22% of the stock is currently owned by institutional investors and hedge funds.

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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