DAQO New Energy (NYSE:DQ) Stock Rating Upgraded by Wall Street Zen

Key Points

• DAQO New Energy has been upgraded by Wall Street Zen from a "strong sell" to a "hold" rating, reflecting a more positive outlook from analysts.
• Several other firms, including HSBC and GLJ Research, have also increased their ratings on DAQO, with price targets ranging from $27.00 to $31.00.
• DAQO New Energy reported a quarterly loss of ($1.14) EPS, which beat expectations, but also indicated a significant shortfall in revenue compared to analyst estimates.

Wall Street Zen upgraded shares of DAQO New Energy (NYSE:DQ - Free Report) from a strong sell rating to a hold rating in a research report released on Saturday morning.

Several other equities research analysts have also recently commented on DQ. Citigroup assumed coverage on shares of DAQO New Energy in a research report on Friday, July 18th. They issued a "buy" rating and a $27.00 target price for the company. Glj Research reissued a "buy" rating and issued a $30.51 price target on shares of DAQO New Energy in a research note on Tuesday, August 26th. Hsbc Global Res raised DAQO New Energy from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 27th. Finally, HSBC upgraded shares of DAQO New Energy from a "hold" rating to a "buy" rating and set a $31.00 target price on the stock in a report on Wednesday, August 27th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, DAQO New Energy has an average rating of "Buy" and an average price target of $26.10.

DAQO New Energy Stock Performance

Shares of NYSE DQ traded up $0.43 during trading hours on Friday, hitting $26.99. The company's stock had a trading volume of 2,317,425 shares, compared to its average volume of 980,540. DAQO New Energy has a 12 month low of $12.40 and a 12 month high of $30.85. The stock has a market cap of $1.81 billion, a price-to-earnings ratio of -4.62 and a beta of 0.50. The business has a 50-day simple moving average of $21.63 and a 200-day simple moving average of $17.88.

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

DAQO New Energy announced that its Board of Directors has approved a share repurchase program on Tuesday, August 26th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the semiconductor company to repurchase shares of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's leadership believes its stock is undervalued.

Institutional Investors Weigh In On DAQO New Energy

Several institutional investors and hedge funds have recently added to or reduced their stakes in DQ. Northern Trust Corp grew its position in DAQO New Energy by 27.2% in the 4th quarter. Northern Trust Corp now owns 119,786 shares of the semiconductor company's stock worth $2,329,000 after purchasing an additional 25,647 shares during the period. Vanguard Group Inc. boosted its stake in shares of DAQO New Energy by 1.5% in the 1st quarter. Vanguard Group Inc. now owns 1,745,544 shares of the semiconductor company's stock worth $31,612,000 after buying an additional 26,359 shares during the last quarter. Continental General Insurance Co. grew its holdings in shares of DAQO New Energy by 0.8% in the first quarter. Continental General Insurance Co. now owns 5,966,202 shares of the semiconductor company's stock worth $108,048,000 after acquiring an additional 50,000 shares during the period. Hsbc Holdings PLC increased its position in DAQO New Energy by 514.3% during the first quarter. Hsbc Holdings PLC now owns 501,145 shares of the semiconductor company's stock valued at $9,026,000 after acquiring an additional 419,569 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. increased its position in DAQO New Energy by 227.3% during the first quarter. Charles Schwab Investment Management Inc. now owns 162,085 shares of the semiconductor company's stock valued at $2,935,000 after acquiring an additional 112,562 shares during the last quarter. Hedge funds and other institutional investors own 47.22% of the company's stock.

DAQO New Energy Company Profile

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.