Daqo New Energy (NYSE:DQ) Stock Price Down 4.2% – What’s Next?

Daqo New Energy Corp. (NYSE:DQ) dropped 4.2% during trading on Thursday . The company traded as low as $17.94 and last traded at $18.10. Approximately 133,978 shares were traded during mid-day trading, a decline of 87% from the average daily volume of 1,061,744 shares. The stock had previously closed at $18.90.

Analyst Upgrades and Downgrades

DQ has been the subject of a number of analyst reports. The Goldman Sachs Group initiated coverage on Daqo New Energy in a research report on Thursday, July 11th. They set a “buy” rating for the company. Daiwa Capital Markets restated a “hold” rating and set a $25.00 price target (up previously from $18.00) on shares of Daqo New Energy in a report on Wednesday, October 9th. Roth Mkm reduced their price objective on shares of Daqo New Energy from $23.00 to $15.00 and set a “neutral” rating on the stock in a research note on Wednesday, August 28th. Jefferies Financial Group lowered their target price on shares of Daqo New Energy from $38.40 to $34.05 and set a “buy” rating for the company in a research note on Monday, August 26th. Finally, Nomura Securities upgraded shares of Daqo New Energy to a “strong-buy” rating in a report on Wednesday, August 28th. One analyst has rated the stock with a sell rating, three have issued a hold rating, three have issued a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat.com, Daqo New Energy currently has a consensus rating of “Moderate Buy” and an average price target of $22.26.

Daqo New Energy Trading Up 6.1 %

The firm’s 50-day moving average price is $17.28 and its 200 day moving average price is $18.70. The company has a market cap of $1.25 billion, a price-to-earnings ratio of 8.92 and a beta of 0.32.

Daqo New Energy (NYSE:DQ) last posted its quarterly earnings results on Monday, August 26th. The semiconductor company reported ($1.81) EPS for the quarter, missing analysts’ consensus estimates of ($0.56) by ($1.25). Daqo New Energy had a negative return on equity of 1.04% and a negative net margin of 4.11%. The company had revenue of $219.91 million during the quarter, compared to analyst estimates of $406.50 million. During the same quarter in the previous year, the business posted $1.34 earnings per share. Analysts forecast that Daqo New Energy Corp. will post -3.35 earnings per share for the current fiscal year.

Daqo New Energy announced that its Board of Directors has approved a share repurchase plan on Monday, July 22nd that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the semiconductor company to repurchase up to 8.6% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in DQ. Blue Trust Inc. increased its holdings in shares of Daqo New Energy by 12,187.5% during the second quarter. Blue Trust Inc. now owns 1,966 shares of the semiconductor company’s stock valued at $29,000 after acquiring an additional 1,950 shares in the last quarter. PNC Financial Services Group Inc. grew its position in Daqo New Energy by 117.5% in the 4th quarter. PNC Financial Services Group Inc. now owns 1,588 shares of the semiconductor company’s stock valued at $42,000 after purchasing an additional 858 shares during the period. AXA S.A. increased its stake in Daqo New Energy by 202.3% during the 2nd quarter. AXA S.A. now owns 6,387 shares of the semiconductor company’s stock valued at $93,000 after purchasing an additional 4,274 shares in the last quarter. Rhumbline Advisers raised its holdings in Daqo New Energy by 22.2% during the second quarter. Rhumbline Advisers now owns 8,104 shares of the semiconductor company’s stock worth $118,000 after buying an additional 1,470 shares during the last quarter. Finally, Harel Insurance Investments & Financial Services Ltd. lifted its stake in shares of Daqo New Energy by 37.9% in the second quarter. Harel Insurance Investments & Financial Services Ltd. now owns 14,442 shares of the semiconductor company’s stock valued at $211,000 after buying an additional 3,970 shares in the last quarter. 47.22% of the stock is owned by institutional investors and hedge funds.

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.