DAQO New Energy (NYSE:DQ) Sets New 12-Month Low - Time to Sell?

Key Points

• DAQO New Energy shares fell to a new 52-week low of $10.56, with the stock trading below both its 50-day and 200-day moving averages.
• Analyst sentiment is weak: the stock has an average “Reduce” rating, with three Sell, two Hold and one Buy recommendations; the consensus price target is $15.83.
• The company reported a quarterly loss of $1.20 per share, missing estimates by $0.63, despite revenue of $62.66 million exceeding expectations.

DAQO New Energy Corp. (NYSE:DQ - Get Free Report) reached a new 52-week low during mid-day trading on Thursday. The company traded as low as $10.56 and last traded at $10.64, with a volume of 55,633 shares. The stock had previously closed at $10.71.

Analyst Ratings Changes

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

DAQO New Energy Price Performance

The company has a market cap of $713.58 million, a P/E ratio of -3.71 and a beta of 0.67. The stock has a 50-day moving average of $12.53 and a 200 day moving average of $15.12.

DAQO New Energy (NYSE:DQ - Get Free Report) last issued its quarterly 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). The firm had revenue of $62.66 million for the quarter, compared to the consensus estimate of $52.93 million. DAQO New Energy had a negative return on equity of 3.26% and a negative net margin of 34.50%. Sell-side analysts predict that DAQO New Energy Corp. will post -1.96 EPS for the current year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Renaissance Technologies LLC acquired a new position in DAQO New Energy during the first quarter worth $3,285,000. Cygnus Capital Advisors LLC bought a new position in shares of DAQO New Energy in the second quarter valued at $724,000. Nykredit A S acquired a new position in shares of DAQO New Energy during the second quarter valued at about $28,000. Public Employees Retirement System of Ohio acquired a new position in shares of DAQO New Energy during the second quarter valued at about $273,000. Finally, BTG Pactual Asset Management US LLC acquired a new position in shares of DAQO New Energy during the second quarter valued at about $224,000. 47.22% of the stock is owned by institutional investors.

DAQO New Energy Company Profile

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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