DAQO New Energy (NYSE:DQ) Hits New 12-Month Low - Here's Why

Key Points

• DAQO New Energy shares hit a new 52-week low of $10.80, trading down 1.8% and below both their 50-day ($12.76) and 200-day ($15.55) moving averages.
• Analyst sentiment is largely negative: the stock has an average “Reduce” rating, with three Sell, two Hold, and one Buy recommendations. The consensus price target is $15.83, although several firms set targets near $10 and Goldman Sachs downgraded the stock to Sell.
• The company reported a quarterly loss of $1.20 per share, substantially worse than the expected $0.57 loss, despite revenue of $62.66 million exceeding estimates. Daqo operates in the pressured polysilicon market and has negative profitability metrics, including a 34.5% net margin.

DAQO New Energy Corp. (NYSE:DQ - Get Free Report) reached a new 52-week low on Wednesday. The company traded as low as $10.80 and last traded at $10.9480, with a volume of 14268 shares trading hands. The stock had previously closed at $11.04.

Analyst Ratings Changes

DQ has been the topic of several analyst reports. JPMorgan Chase & Co. reduced their target price on DAQO New Energy from $35.50 to $22.00 and set an "overweight" rating on the stock in a report on Friday, July 31st. New Street Research set a $10.00 price objective on shares of DAQO New Energy in a research note on Monday, August 24th. Weiss Ratings raised shares of DAQO New Energy from a "sell (e+)" rating to a "sell (d-)" rating in a report on Monday, September 14th. The Goldman Sachs Group cut 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 report on Monday, August 24th. Finally, Zacks Research upgraded shares of DAQO New Energy from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 29th. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Reduce" and a consensus price target of $15.83.

DAQO New Energy Trading Down 1.8%

The company has a market capitalization of $736.25 million, a P/E ratio of -3.83 and a beta of 0.67. The stock has a 50 day moving average price of $12.76 and a 200 day moving average price of $15.55.

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Nykredit A S bought a new position in shares of DAQO New Energy in the second quarter valued at $28,000. Cygnus Capital Advisors LLC bought a new stake in shares of DAQO New Energy during the second quarter worth about $724,000. BTG Pactual Asset Management US LLC acquired a new stake in shares of DAQO New Energy in the 2nd quarter worth about $224,000. Public Employees Retirement System of Ohio bought a new position in DAQO New Energy in the 2nd quarter valued at about $273,000. Finally, Renaissance Technologies LLC bought a new position in DAQO New Energy in the 1st quarter valued at about $3,285,000. Institutional investors own 47.22% of the company's stock.

About DAQO New Energy

Daqo New Energy Corp. is a China-based manufacturer of high-purity polysilicon, a critical raw material used in the production of solar photovoltaic wafers, cells and modules. Through its principal operating subsidiary, Xinjiang Daqo New Energy Co, Ltd., the company produces polysilicon for the global solar industry.

The company's products are primarily used by photovoltaic manufacturers to make monocrystalline and multicrystalline silicon wafers. Daqo operates production facilities in China, including in Xinjiang, and supplies customers in China and international markets through the solar photovoltaic manufacturing supply chain.

Daqo New Energy was established in 2008 and completed its initial public offering on the New York Stock Exchange in 2010.

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