DAQO New Energy (NYSE:DQ) Stock Price Breaks Below Fifty Day Moving Average - What's Next?

Key Points

• DAQO New Energy shares fell below their 50-day moving average, trading as low as $10.82 versus the average of $11.25, and last traded at $10.943.
• Analyst sentiment is generally cautious: MarketBeat reports a “Reduce” consensus and an average price target of $13.73. Recent calls range from JPMorgan’s $18.50 target and overweight rating to sell ratings from Goldman Sachs and Weiss.
• The company reported a quarterly loss of $0.78 per share, missing the $0.48 loss analysts expected; it also recorded negative net margin and return on equity.

Shares of DAQO New Energy Corp. (NYSE:DQ - Get Free Report) passed below its fifty day moving average during trading on Friday. The stock has a fifty day moving average of $11.25 and traded as low as $10.82. DAQO New Energy shares last traded at $10.9430, with a volume of 402,094 shares.

Analyst Upgrades and Downgrades

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

DAQO New Energy Price Performance

The firm has a 50-day moving average price of $11.25 and a 200 day moving average price of $16.39. The company has a market cap of $740.51 million, a price-to-earnings ratio of -3.22 and a beta of 0.50.

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

Institutional Investors Weigh In On DAQO New Energy

Hedge funds and other institutional investors have recently modified their holdings of the company. Nykredit A S acquired a new position in shares of DAQO New Energy in the second quarter valued at about $28,000. Russell Investments Group Ltd. boosted its holdings in DAQO New Energy by 132.9% in the 3rd quarter. Russell Investments Group Ltd. now owns 12,631 shares of the semiconductor company's stock valued at $143,000 after purchasing an additional 7,207 shares during the period. BTG Pactual Asset Management US LLC acquired a new position in shares of DAQO New Energy during the 2nd quarter worth approximately $224,000. Public Employees Retirement System of Ohio acquired a new position in shares of DAQO New Energy during the 2nd quarter worth approximately $273,000. Finally, Himension Capital Singapore PTE. LTD. acquired a new position in shares of DAQO New Energy during the 1st quarter worth approximately $521,000. Institutional investors and hedge funds own 47.22% of the company's stock.

DAQO New Energy Company Profile

DAQO New Energy Corp. is a manufacturer of high-purity polysilicon, a key raw material used to produce solar wafers, cells and modules. Its products support the photovoltaic supply chain and the broader deployment of solar power. Founded in 2007, the company operates manufacturing facilities in China. Its customers include manufacturers of solar wafers and other photovoltaic products, primarily in China, as well as customers in international markets.

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