DAQO New Energy Corp. $DQ Shares Sold by Ariose Capital Management Ltd

Key Points

• Ariose Capital Management Ltd has reduced its stake in DAQO New Energy Corp. by 36.3% in the second quarter, now holding approximately 338,655 shares worth about $5.14 million.
• Institutional investors currently own 47.22% of DAQO New Energy, with several funds, including Continental General Insurance and Goldman Sachs, increasing their positions in the first quarter.
• The company reported a quarterly earnings loss of ($1.14) EPS, which was better than analysts' expectations, but revenues fell short of estimates at $75.19 million compared to $140.54 million.

Ariose Capital Management Ltd reduced its stake in DAQO New Energy Corp. (NYSE:DQ - Free Report) by 36.3% in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund owned 338,655 shares of the semiconductor company's stock after selling 193,254 shares during the quarter. DAQO New Energy makes up 3.3% of Ariose Capital Management Ltd's investment portfolio, making the stock its 10th largest holding. Ariose Capital Management Ltd owned approximately 0.51% of DAQO New Energy worth $5,137,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the stock. Continental General Insurance Co. increased its position in DAQO New Energy by 0.8% in the 1st quarter. Continental General Insurance Co. now owns 5,966,202 shares of the semiconductor company's stock worth $108,048,000 after buying an additional 50,000 shares during the period. Vanguard Group Inc. increased its position in DAQO New Energy by 1.5% in the 1st quarter. Vanguard Group Inc. now owns 1,745,544 shares of the semiconductor company's stock worth $31,612,000 after buying an additional 26,359 shares during the period. Goldman Sachs Group Inc. increased its position in DAQO New Energy by 117.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,159,835 shares of the semiconductor company's stock worth $21,005,000 after buying an additional 625,900 shares during the period. Prudential PLC increased its position in 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 buying an additional 89,431 shares during the period. Finally, SG Americas Securities LLC bought a new position in DAQO New Energy in the 1st quarter worth approximately $9,372,000. 47.22% of the stock is currently owned by institutional investors and hedge funds.

DAQO New Energy Trading Down 8.6%

DQ opened at $28.26 on Friday. The stock has a market cap of $1.90 billion, a PE ratio of -4.84 and a beta of 0.50. DAQO New Energy Corp. has a 1 year low of $12.40 and a 1 year high of $31.21. The stock's 50 day simple moving average is $24.40 and its 200-day simple moving average is $18.65.

DAQO New Energy (NYSE:DQ - Get Free Report) last announced its quarterly 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. 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 return on equity of 6.54% and a negative net margin of 65.64%. Equities analysts forecast that DAQO New Energy Corp. will post -3.5 earnings per share for the current fiscal 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.

Analyst Ratings Changes

Several research analysts have commented on the company. 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. Roth Capital reaffirmed a "neutral" rating and issued a $25.00 price target on shares of DAQO New Energy in a research report on Thursday, September 18th. Citigroup lifted their price target on DAQO New Energy from $27.00 to $37.00 and gave the stock a "buy" rating in a research report on Monday, September 8th. Hsbc Global Res upgraded DAQO New Energy from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 27th. Finally, HSBC upgraded DAQO New Energy from a "hold" rating to a "buy" rating and set a $31.00 price objective on the stock in a research report on Wednesday, August 27th. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, DAQO New Energy has an average rating of "Moderate Buy" and a consensus price target of $25.84.

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.

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