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

Key Points

• DAQO New Energy received an upgrade from Wall Street Zen, moving from a "sell" to a "hold" rating, reflecting improved analyst confidence.
• HSBC and Citigroup have also raised their ratings on DAQO, with HSBC giving it a "buy" rating and a target price of $31, and Citigroup increasing its target price from $27 to $37.
• The company reported a revenue of $75.19 million in its latest quarterly earnings, significantly below the analyst estimates of $140.54 million, while sustaining a negative return on equity of 6.54%.

Wall Street Zen upgraded shares of DAQO New Energy (NYSE:DQ - Free Report) from a sell rating to a hold rating in a report released on Monday.

Several other equities research analysts also recently commented on DQ. HSBC raised shares of DAQO New Energy from a "hold" rating to a "buy" rating and set a $31.00 target price for the company in a research note 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 note on Wednesday, August 27th. Glj Research reaffirmed a "buy" rating and issued a $30.51 target price on shares of DAQO New Energy in a research note on Tuesday, August 26th. Finally, Citigroup upped their target price on shares of DAQO New Energy from $27.00 to $37.00 and gave the company a "buy" rating in a research note on Monday, September 8th. Two research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $25.84.

DAQO New Energy Stock Performance

NYSE:DQ traded up $1.24 during trading hours on Monday, hitting $27.23. The stock had a trading volume of 1,372,754 shares, compared to its average volume of 1,415,166. DAQO New Energy has a one year low of $12.40 and a one year high of $30.85. The company has a market cap of $1.83 billion, a price-to-earnings ratio of -4.66 and a beta of 0.50. The business's 50 day moving average is $23.64 and its 200-day moving average is $18.34.

DAQO New Energy (NYSE:DQ - Get Free Report) last issued its earnings results on Tuesday, August 26th. The semiconductor company reported ($1.14) EPS for the quarter, beating the consensus estimate 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 firm had revenue of $75.19 million during the quarter, compared to the consensus estimate of $140.54 million. On average, sell-side analysts anticipate that DAQO New Energy will post -3.5 EPS for the current fiscal year.

DAQO New Energy announced that its Board of Directors has initiated a stock buyback program on Tuesday, August 26th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the semiconductor company to buy shares of its stock through open market purchases. Shares buyback programs are usually a sign that the company's leadership believes its shares are undervalued.

Institutional Investors Weigh In On DAQO New Energy

Large investors have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd raised 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. Headlands Technologies LLC bought a new stake in shares of DAQO New Energy in the 2nd quarter valued at $29,000. Nuveen Asset Management LLC increased its position in shares of DAQO New Energy by 16.7% during the fourth quarter. Nuveen Asset Management LLC now owns 39,200 shares of the semiconductor company's stock worth $762,000 after buying an additional 5,600 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. lifted its holdings in DAQO New Energy by 39.1% in the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 31,364 shares of the semiconductor company's stock valued at $476,000 after buying an additional 8,815 shares during the period. Finally, American Century Companies Inc. boosted its position in DAQO New Energy by 4.7% during the first quarter. American Century Companies Inc. now owns 220,623 shares of the semiconductor company's stock valued at $3,995,000 after acquiring an additional 9,885 shares during the last quarter. Institutional investors 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.