DAQO New Energy (NYSE:DQ) Hits New 1-Year Low - Should You Sell?

Key Points

• DAQO New Energy shares fell to a new 52-week low of $11.16, below both their 50-day moving average of $12.87 and 200-day moving average of $16.14.
• Analyst sentiment is broadly negative: four analysts rate the stock a Sell, while MarketBeat reports an average rating of “Reduce” and an average price target of $15.83. Goldman Sachs and New Street Research set $10 targets, while JPMorgan cut its target to $22.
• The company reported a quarterly loss of $1.20 per share, missing the consensus loss estimate of $0.57, despite revenue of $62.66 million exceeding expectations; DAQO also posted a negative net margin of 34.50%.

DAQO New Energy Corp. (NYSE:DQ - Get Free Report) reached a new 52-week low during trading on Monday. The company traded as low as $11.16 and last traded at $11.1840, with a volume of 28370 shares trading hands. The stock had previously closed at $11.47.

Analyst Ratings Changes

DQ has been the subject of a number of analyst reports. Weiss Ratings upgraded DAQO New Energy from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday, September 14th. Zacks Research lowered shares of DAQO New Energy from a "hold" rating to a "strong sell" rating in a report on Friday, August 7th. The Goldman Sachs Group downgraded shares of DAQO New Energy from a "neutral" rating to a "sell" rating and set a $10.00 target price for the company. in a research note on Monday, August 24th. JPMorgan Chase & Co. dropped their target price on shares of DAQO New Energy from $35.50 to $22.00 and set an "overweight" rating on the stock in a report on Friday, July 31st. Finally, New Street Research set a $10.00 price target on shares of DAQO New Energy in a research report on Monday, August 24th. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Reduce" and an average price target of $15.83.

DAQO New Energy Stock Performance

The business has a 50 day moving average of $12.87 and a two-hundred day moving average of $16.14. The firm has a market capitalization of $754.52 million, a price-to-earnings ratio of -3.93 and a beta of 0.67.

DAQO New Energy (NYSE:DQ - Get Free Report) last announced its quarterly earnings data on Thursday, August 20th. The semiconductor company reported ($1.20) EPS for the quarter, missing analysts' consensus estimates of ($0.57) by ($0.63). The firm had revenue of $62.66 million during the quarter, compared to analyst estimates of $52.93 million. DAQO New Energy had a negative net margin of 34.50% and a negative return on equity of 3.26%. On average, equities analysts predict that DAQO New Energy Corp. will post -1.96 EPS for the current fiscal year.

Institutional Trading of DAQO New Energy

Hedge funds have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd bought a new position in shares of DAQO New Energy in the fourth quarter valued at $49,000. Nykredit A S bought a new position in shares of DAQO New Energy in the second quarter valued at approximately $28,000. Banque Cantonale Vaudoise boosted its position in shares of DAQO New Energy by 37.5% during the first quarter. Banque Cantonale Vaudoise now owns 2,579 shares of the semiconductor company's stock valued at $55,000 after buying an additional 703 shares during the last quarter. Prudential PLC purchased a new position in shares of DAQO New Energy during the fourth quarter valued at approximately $202,000. Finally, MidFirst Bank bought a new stake in DAQO New Energy during the fourth quarter worth $236,000. Institutional investors and hedge funds own 47.22% of the company's stock.

DAQO New Energy Company Profile

DA​​QO New Energy Corp. NYSE: DQ is a China-based manufacturer of high-purity polysilicon, a key raw material used to produce the wafers, cells and modules that make up solar photovoltaic panels. The company supplies polysilicon primarily to manufacturers in the global solar power industry.

Through its operating subsidiary, Xinjiang Daqo New Energy Co, Ltd., the company produces polysilicon at manufacturing facilities in China. Its products include polysilicon used in both monocrystalline and multicrystalline solar applications, with product specifications designed for use in advanced photovoltaic manufacturing.

Daqo New Energy was established in 2008 and began commercial polysilicon production in 2009.

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