DAQO New Energy (NYSE:DQ) Stock Crosses Above Fifty Day Moving Average - Here's What Happened

Key Points

• DAQO New Energy shares moved above their 50-day moving average of $11.45, reaching $12.52 intraday and last trading at $12.009.
• Analyst sentiment remains cautious: the consensus rating is “Reduce”, based on one Buy, one Hold and three Sell ratings, with an average price target of $13.73.
• The company reported a quarterly loss of $0.78 per share, missing the $0.48 loss analysts expected, while revenue of $194.15 million topped the $61.90 million consensus estimate.

DAQO New Energy Corp. (NYSE:DQ - Get Free Report) shares passed above its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $11.45 and traded as high as $12.52. DAQO New Energy shares last traded at $12.0090, with a volume of 1,324,757 shares changing hands.

Wall Street Analysts Forecast Growth

DQ has been the topic of a number of research analyst reports. Weiss Ratings cut shares of DAQO New Energy from a "sell (d-)" rating to a "sell (e+)" rating in a report on Monday, October 19th. JPMorgan Chase & Co. dropped their price objective on shares of DAQO New Energy from $22.00 to $18.50 and set an "overweight" rating on the stock in a research note on Wednesday, October 28th. Roth Capital set a $12.00 price target on DAQO New Energy in a research note on Wednesday, October 28th. Zacks Research raised shares of DAQO New Energy from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 29th. Finally, New Street Research set a $10.00 price objective on shares of DAQO New Energy in a research note on Monday, August 24th. 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 MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average price target of $13.73.

DAQO New Energy Stock Performance

The business's 50 day moving average price is $11.45 and its 200-day moving average price is $16.88. The firm has a market cap of $812.65 million, a price-to-earnings ratio of -3.53 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) EPS 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 firm had revenue of $194.15 million for the quarter, compared to the consensus estimate of $61.90 million. During the same period in the prior year, the business earned ($0.22) EPS. On average, analysts forecast that DAQO New Energy Corp. will post -3.69 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Nykredit A S acquired a new stake in DAQO New Energy in the 2nd quarter valued at approximately $28,000. Bank of New York Mellon Corp grew its stake in shares of DAQO New Energy by 7.6% in the 1st quarter. Bank of New York Mellon Corp now owns 30,134 shares of the semiconductor company's stock worth $641,000 after purchasing an additional 2,122 shares during the last quarter. Hsbc Holdings PLC increased its holdings in shares of DAQO New Energy by 65.9% in the first quarter. Hsbc Holdings PLC now owns 35,165 shares of the semiconductor company's stock valued at $739,000 after buying an additional 13,970 shares in the last quarter. BTG Pactual Asset Management US LLC purchased a new stake in shares of DAQO New Energy during the second quarter valued at $224,000. Finally, Public Employees Retirement System of Ohio purchased a new stake in DAQO New Energy during the second quarter valued at about $273,000. Institutional investors and hedge funds 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.

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