DAQO New Energy (NYSE:DQ) Shares Down 6.1% - Should You Sell?

Key Points

• DAQO New Energy shares fell 6.1% to $11.88, while mid-day trading volume was 97% below the average session volume.
• Analyst sentiment is cautious: the average rating is “Reduce,” with a $13.73 consensus price target; Goldman Sachs downgraded the stock to “sell” and set a $10 target.
• The company reported a quarterly loss of $0.78 per share, missing the $0.48 loss analysts expected, despite revenue of $194.15 million versus estimates of $61.90 million.

DAQO New Energy Corp. (NYSE:DQ - Get Free Report)'s stock price was down 6.1% during trading on Monday. The company traded as low as $12.11 and last traded at $11.8820. 20,754 shares were traded during mid-day trading, a decline of 97% from the average session volume of 805,900 shares. The stock had previously closed at $12.65.

Analyst Upgrades and Downgrades

DQ has been the topic of a number of research reports. 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 on the stock. in a report on Monday, August 24th. JPMorgan Chase & Co. lowered their price target on shares of DAQO New Energy from $22.00 to $18.50 and set an "overweight" rating for the company in a report on Wednesday, October 28th. Zacks Research upgraded DAQO New Energy from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 29th. Roth Capital set a $12.00 price target on DAQO New Energy in a research report on Wednesday, October 28th. Finally, Weiss Ratings cut DAQO New Energy from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Monday, October 19th. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, DAQO New Energy has an average rating of "Reduce" and a consensus target price of $13.73.

DAQO New Energy Price Performance

The company has a 50-day simple moving average of $11.39 and a 200-day simple moving average of $16.76. The firm has a market cap of $804.75 million, a PE ratio of -3.48 and a beta of 0.50.

DAQO New Energy (NYSE:DQ - Get Free Report) last released its earnings results on Tuesday, October 27th. The semiconductor company reported ($0.78) earnings per share for the quarter, missing analysts' consensus estimates of ($0.48) by ($0.30). DAQO New Energy had a negative return on equity of 3.90% and a negative net margin of 45.46%. The business had revenue of $194.15 million during the quarter, compared to analysts' expectations of $61.90 million. During the same quarter in the previous year, the business earned ($0.22) EPS. As a group, equities research analysts predict that DAQO New Energy Corp. will post -3.69 earnings per share for the current year.

Institutional Trading of DAQO New Energy

Institutional investors and hedge funds have recently modified their holdings of the stock. Renaissance Technologies LLC purchased a new stake in shares of DAQO New Energy in the 1st quarter worth $3,285,000. Cygnus Capital Advisors LLC purchased a new position in DAQO New Energy in the second quarter valued at about $724,000. Himension Capital Singapore PTE. LTD. purchased a new position in shares of DAQO New Energy in the 1st quarter worth approximately $521,000. Hsbc Holdings PLC acquired a new position in shares of DAQO New Energy during the fourth quarter worth $624,000. Finally, Public Employees Retirement System of Ohio acquired a new position in DAQO New Energy during the 2nd quarter valued at about $273,000. Institutional investors own 47.22% of the company's stock.

About DAQO New Energy

Daqo New Energy Corp. NYSE: DQ is a China-based manufacturer of high-purity polysilicon, a key raw material used to produce solar photovoltaic wafers, cells and modules. Through its operating subsidiaries, the company produces polysilicon in grades used primarily for monocrystalline and multicrystalline solar applications.

The company's production operations are located in China, including facilities in Xinjiang. Its products are supplied to manufacturers in the solar photovoltaic industry, primarily within China's extensive solar manufacturing supply chain, with the company serving customers in other markets through industry sales and distribution relationships.

Daqo New Energy was founded in 2007 and completed its initial public offering on the New York Stock Exchange in 2010.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.