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 research report report published on Monday.

DQ has been the subject of several other research reports. Glj Research reissued a "buy" rating and issued a $30.51 price target on shares of DAQO New Energy in a research report on Tuesday, August 26th. HSBC upgraded shares of DAQO New Energy from a "hold" rating to a "buy" rating and set a $31.00 price target on the stock in a research report on Wednesday, August 27th. Citigroup lifted their target price on DAQO New Energy from $27.00 to $37.00 and gave the company a "buy" rating in a research note on Monday, September 8th. Finally, Hsbc Global Res upgraded shares of DAQO New Energy from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 27th. Two research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Buy" and an average target price of $28.10.

DAQO New Energy Stock Up 0.1%

Shares of DQ stock traded up $0.02 during mid-day trading on Monday, reaching $27.40. The stock had a trading volume of 855,280 shares, compared to its average volume of 1,392,167. DAQO New Energy has a one year low of $12.40 and a one year high of $30.85. The firm has a market cap of $1.84 billion, a PE ratio of -4.69 and a beta of 0.50. The firm's 50 day simple moving average is $23.22 and its 200 day simple moving average is $18.17.

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 analysts' consensus estimates of ($1.16) by $0.02. DAQO New Energy had a negative return on equity of 6.54% and a negative net margin of 65.64%.The business had revenue of $75.19 million during the quarter, compared to analyst estimates of $140.54 million. Sell-side analysts forecast that DAQO New Energy will post -3.5 earnings per share for the current fiscal year.

DAQO New Energy declared that its board has initiated a share buyback program on Tuesday, August 26th that permits the company to buyback $0.00 in shares. This buyback authorization permits the semiconductor company to reacquire shares of its stock through open market purchases. Stock buyback programs are generally an indication that the company's management believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of DQ. Headlands Technologies LLC acquired a new stake in shares of DAQO New Energy in the second quarter valued at approximately $29,000. Caitong International Asset Management Co. Ltd increased its holdings in shares of DAQO New Energy by 86,700.0% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 1,736 shares of the semiconductor company's stock worth $31,000 after acquiring an additional 1,734 shares during the last quarter. Virtu Financial LLC acquired a new position in shares of DAQO New Energy in the first quarter valued at $187,000. Vident Advisory LLC bought a new position in DAQO New Energy in the 1st quarter valued at about $216,000. Finally, Harvest Portfolios Group Inc. bought a new position in shares of DAQO New Energy during the first quarter worth approximately $305,000. 47.22% of the stock is owned by institutional investors and hedge funds.

About DAQO New Energy

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.