DAQO New Energy (NYSE:DQ) Rating Increased to Strong-Buy at Hsbc Global Res

Key Points

• DAQO New Energy has been upgraded to a "Strong-Buy" rating by HSBC Global Research, increasing its price target to $31.00, indicating growing confidence in the stock's potential.
• The company reported a quarterly loss of ($1.14) EPS, slightly better than expected, but its revenue of $75.19 million fell short of analyst estimates of $140.54 million.
• A stock repurchase program has been authorized, suggesting that the board believes the shares are currently undervalued, despite the company's recent trading performance.

Hsbc Global Res upgraded shares of DAQO New Energy (NYSE:DQ - Free Report) from a hold rating to a strong-buy rating in a report released on Wednesday,Zacks.com reports.

Other research analysts also recently issued reports about the company. Citigroup started coverage on DAQO New Energy in a research report on Friday, July 18th. They issued a "buy" rating and a $27.00 price target on the stock. Glj Research reaffirmed a "buy" rating and issued a $30.51 price target on shares of DAQO New Energy in a research report on Tuesday, August 26th. Finally, HSBC raised 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. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, DAQO New Energy presently has an average rating of "Buy" and a consensus target price of $26.10.

DAQO New Energy Stock Up 12.1%

NYSE DQ traded up $2.75 during trading on Wednesday, hitting $25.59. The company's stock had a trading volume of 2,673,604 shares, compared to its average volume of 976,310. The firm has a 50 day moving average price of $20.67 and a 200 day moving average price of $17.70. The firm has a market cap of $1.72 billion, a P/E ratio of -4.38 and a beta of 0.50. DAQO New Energy has a 52 week low of $12.40 and a 52 week high of $30.85.

DAQO New Energy (NYSE:DQ - Get Free Report) last issued its quarterly earnings results on Tuesday, August 26th. The semiconductor company reported ($1.14) EPS for the quarter, topping the consensus estimate of ($1.16) by $0.02. The company had revenue of $75.19 million for the quarter, compared to the consensus estimate of $140.54 million. DAQO New Energy had a negative return on equity of 6.54% and a negative net margin of 65.64%. On average, equities analysts expect that DAQO New Energy will post -3.5 earnings per share for the current year.

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

Institutional Trading of DAQO New Energy

Several institutional investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd boosted 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 valued at $31,000 after buying an additional 1,734 shares in the last quarter. Headlands Technologies LLC acquired a new stake in DAQO New Energy in the 2nd quarter valued at $29,000. CoreCommodity Management LLC boosted its stake in DAQO New Energy by 1.6% in the 4th quarter. CoreCommodity Management LLC now owns 134,888 shares of the semiconductor company's stock valued at $2,622,000 after buying an additional 2,183 shares in the last quarter. Nuveen Asset Management LLC boosted its stake in DAQO New Energy by 16.7% in the 4th 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 in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. boosted its stake in DAQO New Energy by 39.1% in the 2nd 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 in the last quarter. Institutional investors and hedge funds own 47.22% of the company's stock.

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.