DAQO New Energy (NYSE:DQ) Shares Down 7.7% – Time to Sell?

Shares of DAQO New Energy Corp. (NYSE:DQ) fell 7.7% during trading on Tuesday . The stock traded as low as $31.65 and last traded at $31.8550. 129,174 shares changed hands during trading, a decline of 88% from the average session volume of 1,083,109 shares. The stock had previously closed at $34.50.

Analyst Ratings Changes

A number of research analysts recently weighed in on DQ shares. Hsbc Global Res upgraded shares of DAQO New Energy from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, August 27th. HSBC raised DAQO New Energy from a “hold” rating to a “buy” rating and set a $31.00 price target on the stock in a report on Wednesday, August 27th. Roth Capital set a $30.00 price objective on DAQO New Energy and gave the stock a “neutral” rating in a research note on Tuesday, October 28th. Wall Street Zen upgraded DAQO New Energy from a “sell” rating to a “hold” rating in a research report on Monday, November 3rd. Finally, The Goldman Sachs Group set a $18.30 price target on DAQO New Energy and gave the stock a “neutral” rating in a report on Wednesday, October 29th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, DAQO New Energy has a consensus rating of “Moderate Buy” and a consensus price target of $27.04.

DAQO New Energy Stock Down 7.7%

The stock’s 50 day moving average is $28.75 and its 200-day moving average is $22.07. The company has a market cap of $2.14 billion, a PE ratio of -6.18 and a beta of 0.73.

DAQO New Energy (NYSE:DQ) last issued its quarterly earnings data on Monday, October 27th. The semiconductor company reported ($0.22) earnings per share for the quarter, topping the consensus estimate of ($0.61) by $0.39. DAQO New Energy had a negative return on equity of 5.89% and a negative net margin of 53.74%.The company had revenue of $162.30 million for the quarter, compared to analysts’ expectations of $176.78 million. On average, analysts anticipate that DAQO New Energy Corp. will post -3.5 EPS for the current fiscal year.

DAQO New Energy announced that its board has authorized a share buyback program on Tuesday, August 26th that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the semiconductor company to purchase shares of its stock through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Quarry LP purchased a new position in DAQO New Energy in the 3rd quarter worth about $26,000. Headlands Technologies LLC purchased a new stake in shares of DAQO New Energy in the second quarter valued at approximately $29,000. Caitong International Asset Management Co. Ltd grew its stake in 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 worth $31,000 after purchasing an additional 1,734 shares in the last quarter. Pinpoint Asset Management Singapore Pte. Ltd. increased its holdings in DAQO New Energy by 777.7% during the 3rd quarter. Pinpoint Asset Management Singapore Pte. Ltd. now owns 2,633 shares of the semiconductor company’s stock worth $74,000 after purchasing an additional 2,333 shares during the period. Finally, Virtu Financial LLC purchased a new position in DAQO New Energy during the 1st quarter worth $187,000. Institutional investors 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.