Continental General Insurance Co. Has $108.05 Million Stock Position in DAQO New Energy Corp. $DQ

Key Points

• Continental General Insurance Co. increased its stake in DAQO New Energy Corp. by 0.8%, owning approximately 5.97 million shares valued at around $108.05 million, making it the largest position in its portfolio.
• Several hedge funds boosted their positions in DAQO New Energy, with notable increases from Point72 Asset Management at 67.5% and HSBC Holdings at 514.3% during the first quarter.
• Despite posting a loss with an EPS of ($1.14), DAQO New Energy beat analysts' estimates and also announced a stock buyback program, suggesting management believes the stock is undervalued.

Continental General Insurance Co. lifted its stake in DAQO New Energy Corp. (NYSE:DQ - Free Report) by 0.8% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 5,966,202 shares of the semiconductor company's stock after purchasing an additional 50,000 shares during the quarter. DAQO New Energy comprises approximately 37.4% of Continental General Insurance Co.'s holdings, making the stock its largest position. Continental General Insurance Co. owned 8.90% of DAQO New Energy worth $108,048,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently made changes to their positions in DQ. Vanguard Group Inc. raised its stake in DAQO New Energy by 1.5% during the first quarter. Vanguard Group Inc. now owns 1,745,544 shares of the semiconductor company's stock valued at $31,612,000 after buying an additional 26,359 shares during the last quarter. Point72 Asset Management L.P. increased its holdings in shares of 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 valued at $17,237,000 after acquiring an additional 357,460 shares in the last quarter. Prudential PLC raised its position in shares of DAQO New Energy by 11.8% in the 1st quarter. Prudential PLC now owns 849,471 shares of the semiconductor company's stock worth $15,384,000 after purchasing an additional 89,431 shares during the last quarter. SG Americas Securities LLC bought a new position in DAQO New Energy in the 1st quarter worth about $9,372,000. Finally, Hsbc Holdings PLC grew its position in DAQO New Energy by 514.3% during 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. Hedge funds and other institutional investors own 47.22% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have issued reports on DQ. Glj Research reaffirmed a "buy" rating and issued a $30.51 target price on shares of DAQO New Energy in a report on Tuesday. Citigroup began coverage on shares of DAQO New Energy in a research report on Friday, July 18th. They set a "buy" rating and a $27.00 price target for the company. Hsbc Global Res downgraded DAQO New Energy from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, April 30th. Finally, HSBC lowered DAQO New Energy from a "buy" rating to a "hold" rating and set a $14.00 target price for the company. in a report on Wednesday, April 30th. Two investment analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $21.42.

DAQO New Energy Stock Performance

DAQO New Energy stock opened at $23.64 on Wednesday. DAQO New Energy Corp. has a one year low of $12.40 and a one year high of $30.85. The stock has a fifty day moving average of $20.08 and a 200 day moving average of $17.67. The stock has a market cap of $1.59 billion, a PE ratio of -3.63 and a beta of 0.48.

DAQO New Energy (NYSE:DQ - Get Free Report) last released its quarterly earnings results on Tuesday, August 26th. The semiconductor company reported ($1.14) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($1.16) by $0.02. DAQO New Energy had a negative return on equity of 7.16% and a negative net margin of 58.63%.The business had revenue of $75.19 million during the quarter, compared to the consensus estimate of $140.54 million. As a group, sell-side analysts predict that DAQO New Energy Corp. will post -3.5 EPS for the current fiscal year.

DAQO New Energy declared that its board has authorized a stock buyback program 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. Stock repurchase programs are usually a sign that the company's management believes its shares are undervalued.

DAQO New Energy 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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