DAQO New Energy (NYSE:DQ) Shares Gap Down - Time to Sell?

Key Points

• DAQO New Energy shares fell 2.1%, opening at $13.77 versus a prior close of $14.43, and last traded near $13.70.
• Analyst sentiment is largely negative: four analysts rate the stock a Sell, with an average rating of “Hold” and an average price target of $21.02. JPMorgan also cut its target to $22 from $35.50.
• The company reported a quarterly loss of $1.20 per share, missing the consensus estimate of a $0.57 loss, despite revenue of $62.66 million exceeding expectations. Institutional investors own 47.22% of the stock, with several major funds increasing their positions.

Shares of DAQO New Energy Corp. (NYSE:DQ - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $14.43, but opened at $13.77. DAQO New Energy shares last traded at $13.6990, with a volume of 160,468 shares.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on DQ shares. Weiss Ratings raised DAQO New Energy from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, August 11th. Zacks Research lowered DAQO New Energy from a "hold" rating to a "strong sell" rating in a report on Friday, August 7th. Wall Street Zen cut DAQO New Energy from a "hold" rating to a "strong sell" rating in a research report on Saturday, May 2nd. JPMorgan Chase & Co. dropped their price objective on shares of DAQO New Energy from $35.50 to $22.00 and set an "overweight" rating for the company in a research note on Friday, July 31st. Finally, Roth Capital set a $19.00 price objective on DAQO New Energy in a research note on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, one has assigned a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $21.02.

DAQO New Energy Trading Down 2.1%

The company's fifty day moving average price is $13.12 and its two-hundred day moving average price is $18.13. The firm has a market cap of $955.50 million, a P/E ratio of -4.99 and a beta of 0.66.

DAQO New Energy (NYSE:DQ - Get Free Report) last announced its earnings results on Thursday, August 20th. The semiconductor company reported ($1.20) earnings per share (EPS) 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 firm had revenue of $62.66 million for the quarter, compared to analyst estimates of $52.93 million. On average, analysts predict that DAQO New Energy Corp. will post -1.96 EPS for the current fiscal year.

Hedge Funds Weigh In On DAQO New Energy

A number of large investors have recently modified their holdings of DQ. Millennium Management LLC raised its position in DAQO New Energy by 1,261.0% in the 1st quarter. Millennium Management LLC now owns 354,596 shares of the semiconductor company's stock worth $6,422,000 after purchasing an additional 328,541 shares during the last quarter. Goldman Sachs Group Inc. raised its position in shares of DAQO New Energy by 117.2% during the first quarter. Goldman Sachs Group Inc. now owns 1,159,835 shares of the semiconductor company's stock worth $21,005,000 after acquiring an additional 625,900 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of DAQO New Energy by 34.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 174,912 shares of the semiconductor company's stock valued at $3,168,000 after acquiring an additional 44,780 shares during the period. Jump Financial LLC boosted its holdings in DAQO New Energy by 78.0% in the second quarter. Jump Financial LLC now owns 212,200 shares of the semiconductor company's stock valued at $3,219,000 after acquiring an additional 92,954 shares during the last quarter. Finally, Bank of America Corp DE boosted its holdings in DAQO New Energy by 267.0% in the second quarter. Bank of America Corp DE now owns 193,805 shares of the semiconductor company's stock valued at $2,940,000 after acquiring an additional 141,004 shares during the last quarter. 47.22% of the stock is currently owned by institutional investors and hedge funds.

About DAQO New Energy

DAQO New Energy Corp. operates as a leading manufacturer of high-purity polysilicon and monocrystalline silicon wafers for the global solar photovoltaic industry. The company focuses on serving module makers and integrated solar producers with critical upstream materials, applying proprietary technologies and optimized processes to achieve high product purity and consistently low production costs. Its core offerings include solar-grade polysilicon—used in the ingot casting and wafer slicing stages—and premium mono-silicon wafers, which are a key input for high-efficiency solar cell production.

Founded in the late 2000s and listed on the New York Stock Exchange in 2010, DAQO New Energy established its first polysilicon facility in China's Xinjiang Uygur Autonomous Region.

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