Daqo New Energy (NYSE:DQ) Trading 4.1% Higher – Still a Buy?

by · The Markets Daily

Daqo New Energy Corp. (NYSE:DQ – Get Free Report)’s stock price rose 4.1% on Tuesday . The stock traded as high as $20.58 and last traded at $20.51. Approximately 165,900 shares changed hands during trading, a decline of 84% from the average daily volume of 1,059,157 shares. The stock had previously closed at $19.70.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on DQ shares. Daiwa America upgraded Daqo New Energy to a “hold” rating in a research note on Wednesday, October 9th. Daiwa Capital Markets reaffirmed a “hold” rating and set a $25.00 price objective (up from $18.00) on shares of Daqo New Energy in a report on Wednesday, October 9th. Hsbc Global Res raised shares of Daqo New Energy from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, October 2nd. HSBC raised shares of Daqo New Energy from a “hold” rating to a “buy” rating in a report on Wednesday, October 2nd. Finally, The Goldman Sachs Group assumed coverage on Daqo New Energy in a report on Thursday, July 11th. They issued a “buy” rating for the company. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, three have given a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat, Daqo New Energy presently has a consensus rating of “Moderate Buy” and a consensus price target of $22.26.

View Our Latest Stock Analysis on DQ

Daqo New Energy Price Performance

The company has a market cap of $1.39 billion, a price-to-earnings ratio of 9.85 and a beta of 0.32. The stock has a 50-day moving average price of $17.35 and a 200 day moving average price of $18.53.

Daqo New Energy (NYSE:DQ – Get Free Report) last announced its earnings results on Monday, August 26th. The semiconductor company reported ($1.81) EPS for the quarter, missing the consensus estimate 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 for the quarter, compared to analyst estimates of $406.50 million. During the same quarter last year, the business posted $1.34 earnings per share. Sell-side analysts expect that Daqo New Energy Corp. will post -3.35 EPS for the current fiscal year.

Daqo New Energy announced that its board has initiated a share buyback plan on Monday, July 22nd that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the semiconductor company to purchase up to 8.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Daqo New Energy

A number of large investors have recently modified their holdings of the business. Point72 Asset Management L.P. bought a new stake in shares of Daqo New Energy in the 2nd quarter valued at about $11,080,000. Sylebra Capital LLC boosted its stake in shares of Daqo New Energy by 103.9% during the 2nd quarter. Sylebra Capital LLC now owns 943,692 shares of the semiconductor company’s stock worth $13,778,000 after acquiring an additional 480,980 shares during the period. BNP Paribas Financial Markets increased its holdings in shares of Daqo New Energy by 142.1% during the 1st quarter. BNP Paribas Financial Markets now owns 696,865 shares of the semiconductor company’s stock worth $19,617,000 after acquiring an additional 409,057 shares during the last quarter. Jupiter Asset Management Ltd. bought a new stake in Daqo New Energy in the 1st quarter valued at $9,647,000. Finally, Ariose Capital Management Ltd lifted its holdings in Daqo New Energy by 23.9% during the 2nd quarter. Ariose Capital Management Ltd now owns 1,181,124 shares of the semiconductor company’s stock valued at $17,244,000 after purchasing an additional 228,200 shares during the last quarter. 47.22% of the stock is currently owned by institutional investors and hedge funds.

About Daqo New Energy

(Get Free Report)

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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