Caxton Associates LLP Makes New $1.71 Million Investment in DAQO New Energy Corp. $DQ

Key Points

• Caxton Associates LLP has invested $1.71 million in DAQO New Energy Corp., acquiring 94,147 shares and now owning 0.14% of the company.
• Goldman Sachs increased its position in DAQO by 117.2%, now holding over $21 million worth of shares, while other institutions have notably boosted their stakes as well.
• Despite reporting a loss of ($1.14) earnings per share in its latest earnings, DAQO's stock has seen upgrades, including a strong buy rating from HSBC and price target raises from multiple analysts.

Caxton Associates LLP acquired a new stake in DAQO New Energy Corp. (NYSE:DQ - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 94,147 shares of the semiconductor company's stock, valued at approximately $1,705,000. Caxton Associates LLP owned about 0.14% of DAQO New Energy at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Goldman Sachs Group Inc. lifted its stake in DAQO New Energy by 117.2% in the first quarter. Goldman Sachs Group Inc. now owns 1,159,835 shares of the semiconductor company's stock valued at $21,005,000 after acquiring an additional 625,900 shares during the last quarter. SG Americas Securities LLC bought a new stake in shares of DAQO New Energy in the 1st quarter valued at about $9,372,000. Hsbc Holdings PLC lifted its stake in DAQO New Energy by 514.3% in the 1st quarter. Hsbc Holdings PLC now owns 501,145 shares of the semiconductor company's stock valued at $9,026,000 after purchasing an additional 419,569 shares during the last quarter. Point72 Asset Management L.P. grew its holdings in DAQO New Energy by 67.5% during the fourth quarter. Point72 Asset Management L.P. now owns 886,655 shares of the semiconductor company's stock worth $17,237,000 after purchasing an additional 357,460 shares during the period. Finally, Millennium Management LLC increased its position in DAQO New Energy by 1,261.0% during the first quarter. Millennium Management LLC now owns 354,596 shares of the semiconductor company's stock worth $6,422,000 after buying an additional 328,541 shares during the last quarter. 47.22% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of research firms have recently issued reports on DQ. Hsbc Global Res raised DAQO New Energy from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 27th. Citigroup raised their price target on DAQO New Energy from $27.00 to $37.00 and gave the company a "buy" rating in a report on Monday, September 8th. Glj Research reiterated a "buy" rating and issued a $30.51 price objective on shares of DAQO New Energy in a report on Tuesday, August 26th. Wall Street Zen lowered shares of DAQO New Energy from a "hold" rating to a "sell" rating in a research report on Sunday, September 7th. Finally, 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 report on Wednesday, August 27th. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, DAQO New Energy presently has a consensus rating of "Buy" and an average target price of $28.10.

DAQO New Energy Stock Down 0.5%

Shares of DQ traded down $0.13 during midday trading on Friday, reaching $25.74. 776,982 shares of the stock were exchanged, compared to its average volume of 1,352,638. The stock's 50 day simple moving average is $22.86 and its 200 day simple moving average is $18.06. The company has a market cap of $1.73 billion, a P/E ratio of -4.41 and a beta of 0.50. DAQO New Energy Corp. has a twelve month low of $12.40 and a twelve month high of $30.85.

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

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

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.