DAQO New Energy (NYSE:DQ) Shares Gap Up – What’s Next?

DAQO New Energy Corp. (NYSE:DQ)’s stock price gapped up before the market opened on Tuesday. The stock had previously closed at $10.11, but opened at $10.78. DAQO New Energy shares last traded at $10.2910, with a volume of 71,883 shares changing hands.

Analyst Upgrades and Downgrades

DQ has been the subject of a number of recent analyst reports. New Street Research set a $10.00 price target on shares of DAQO New Energy in a research report on Monday, August 24th. Weiss Ratings downgraded shares of DAQO New Energy from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, October 19th. The Goldman Sachs Group downgraded shares of DAQO New Energy from a “neutral” rating to a “sell” rating and set a $10.00 price objective on the stock. in a research report on Monday, August 24th. JPMorgan Chase & Co. lowered their target price on shares of DAQO New Energy from $35.50 to $22.00 and set an “overweight” rating on the stock in a research note on Friday, July 31st. Finally, Zacks Research raised shares of DAQO New Energy from a “strong sell” rating to a “hold” rating in a report on Tuesday, September 29th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average price target of $15.83.

DAQO New Energy Trading Up 4.3%

The company has a 50 day simple moving average of $11.89 and a two-hundred day simple moving average of $17.42. The firm has a market capitalization of $713.24 million, a P/E ratio of -3.74 and a beta of 0.67.

DAQO New Energy (NYSE:DQ) last released its quarterly earnings data on Tuesday, October 27th. The semiconductor company reported ($0.78) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.48) by ($0.30). The company had revenue of $194.15 million for the quarter, compared to the consensus estimate of $61.90 million. DAQO New Energy had a negative net margin of 34.50% and a negative return on equity of 3.26%. During the same quarter in the previous year, the business earned ($0.22) EPS. On average, sell-side analysts expect that DAQO New Energy Corp. will post -1.96 EPS for the current fiscal year.

Hedge Funds Weigh In On DAQO New Energy

Several institutional investors have recently bought and sold shares of the stock. Renaissance Technologies LLC bought a new position in shares of DAQO New Energy during the 1st quarter valued at about $3,285,000. SG Americas Securities LLC increased its holdings in shares of DAQO New Energy by 58.1% in the first quarter. SG Americas Securities LLC now owns 67,643 shares of the semiconductor company’s stock worth $1,439,000 after purchasing an additional 24,855 shares during the last quarter. Cygnus Capital Advisors LLC bought a new stake in shares of DAQO New Energy in the second quarter worth about $724,000. Hsbc Holdings PLC lifted its position in shares of DAQO New Energy by 65.9% in the first quarter. Hsbc Holdings PLC now owns 35,165 shares of the semiconductor company’s stock worth $739,000 after buying an additional 13,970 shares in the last quarter. Finally, Bank of New York Mellon Corp lifted its position in shares of DAQO New Energy by 7.6% in the first quarter. Bank of New York Mellon Corp now owns 30,134 shares of the semiconductor company’s stock worth $641,000 after buying an additional 2,122 shares in the last quarter. 47.22% of the stock is owned by hedge funds and other institutional investors.

About DAQO New Energy

Daqo New Energy Corp. (NYSE: DQ) is a China-based manufacturer of high-purity polysilicon, a key raw material used to produce solar photovoltaic wafers, cells and modules. Through its operating subsidiaries, the company produces polysilicon in grades used primarily for monocrystalline and multicrystalline solar applications.

The company’s production operations are located in China, including facilities in Xinjiang. Its products are supplied to manufacturers in the solar photovoltaic industry, primarily within China’s extensive solar manufacturing supply chain, with the company serving customers in other markets through industry sales and distribution relationships.

Daqo New Energy was founded in 2007 and completed its initial public offering on the New York Stock Exchange in 2010.