Short Interest in DAQO New Energy Corp. (NYSE:DQ) Decreases By 25.7%

Key Points

• Short interest in DAQO New Energy Corp. has decreased by 25.7% in September, totaling 2,860,000 shares, indicating reduced bearish sentiment among investors.
• The company's quarterly earnings reported a loss of ($1.14) per share, surpassing analyst expectations, but revenue fell significantly short at $75.19 million against expectations of $140.54 million.
• DAQO New Energy's board has authorized a $100 million stock buyback plan, suggesting the company believes its shares are undervalued.

DAQO New Energy Corp. (NYSE:DQ - Get Free Report) was the recipient of a significant drop in short interest in the month of September. As of September 15th, there was short interest totaling 2,860,000 shares, a drop of 25.7% from the August 31st total of 3,850,000 shares. Based on an average daily volume of 1,430,000 shares, the days-to-cover ratio is currently 2.0 days. Approximately 4.3% of the shares of the company are short sold. Approximately 4.3% of the shares of the company are short sold. Based on an average daily volume of 1,430,000 shares, the days-to-cover ratio is currently 2.0 days.

DAQO New Energy Trading Down 2.7%

Shares of DAQO New Energy stock opened at $28.18 on Tuesday. The company has a 50-day moving average of $25.04 and a two-hundred day moving average of $19.02. DAQO New Energy has a 12-month low of $12.40 and a 12-month high of $31.21. The stock has a market cap of $1.89 billion, a PE ratio of -4.83 and a beta of 0.60.

DAQO New Energy (NYSE:DQ - Get Free Report) last released its quarterly earnings results on Tuesday, August 26th. The semiconductor company reported ($1.14) earnings per share for the quarter, topping analysts' consensus estimates of ($1.16) by $0.02. The business had revenue of $75.19 million for the quarter, compared to analysts' expectations of $140.54 million. DAQO New Energy had a negative return on equity of 6.54% and a negative net margin of 65.64%. On average, sell-side analysts forecast that DAQO New Energy will post -3.5 EPS for the current fiscal year.

DAQO New Energy announced that its board has authorized a stock buyback plan on Tuesday, August 26th that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the semiconductor company to reacquire shares of its stock through open market purchases. Shares repurchase plans are typically a sign that the company's board believes its shares are undervalued.

Wall Street Analyst Weigh In

DQ has been the topic of several recent research reports. Glj Research reissued a "buy" rating and issued a $30.51 price objective on shares of DAQO New Energy in a research note on Tuesday, August 26th. Citigroup boosted their price target on shares of DAQO New Energy from $27.00 to $37.00 and gave the stock a "buy" rating in a research note on Monday, September 8th. Weiss Ratings restated a "sell (d)" rating on shares of DAQO New Energy in a research report on Saturday, September 27th. The Goldman Sachs Group cut DAQO New Energy from a "neutral" rating to a "sell" rating in a research report on Thursday, September 18th. Finally, HSBC raised DAQO New Energy from a "hold" rating to a "buy" rating and set a $31.00 price target for the company in a report on Wednesday, August 27th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, one has given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $25.84.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Headlands Technologies LLC acquired a new stake in DAQO New Energy in the 2nd quarter valued at about $29,000. Caitong International Asset Management Co. Ltd lifted its holdings in shares of DAQO New Energy by 86,700.0% in the first quarter. Caitong International Asset Management Co. Ltd now owns 1,736 shares of the semiconductor company's stock valued at $31,000 after purchasing an additional 1,734 shares in the last quarter. Virtu Financial LLC acquired a new stake in shares of DAQO New Energy in the first quarter valued at approximately $187,000. Vident Advisory LLC acquired a new stake in shares of DAQO New Energy in the first quarter valued at approximately $216,000. Finally, Harvest Portfolios Group Inc. purchased a new position in shares of DAQO New Energy during the 1st quarter worth approximately $305,000. Institutional investors and hedge funds own 47.22% of the company's stock.

About DAQO New Energy

Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon to photovoltaic product manufacturers in the People's Republic of China. Its products are used in ingots, wafers, cells, and modules for solar power solutions. The company was formerly known as Mega Stand International Limited and changed its name to Daqo New Energy Corp.

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