DAQO New Energy (NYSE:DQ) Shares Gap Down – Here’s Why

DAQO New Energy Corp. (NYSE:DQ) gapped down before the market opened on Wednesday . The stock had previously closed at $35.61, but opened at $34.04. DAQO New Energy shares last traded at $31.4950, with a volume of 592,773 shares traded.

Analyst Ratings Changes

DQ has been the subject of a number of recent research reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of DAQO New Energy in a research note on Thursday. Wall Street Zen raised shares of DAQO New Energy from a “sell” rating to a “hold” rating in a report on Monday, November 3rd. Citigroup raised their price objective on DAQO New Energy from $27.00 to $37.00 and gave the stock a “buy” rating in a research report on Monday, September 8th. Hsbc Global Res upgraded shares of DAQO New Energy from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 27th. Finally, The Goldman Sachs Group set a $18.30 price target on DAQO New Energy and gave the stock a “neutral” rating in a research note on Wednesday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $27.04.

DAQO New Energy Price Performance

The stock has a market cap of $2.25 billion, a price-to-earnings ratio of -6.53 and a beta of 0.73. The business’s 50 day moving average is $28.62 and its 200 day moving average is $21.79.

DAQO New Energy (NYSE:DQ) last posted its quarterly earnings results on Monday, October 27th. The semiconductor company reported ($0.22) earnings per share for the quarter, beating analysts’ consensus estimates 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. As a group, analysts forecast that DAQO New Energy Corp. will post -3.5 earnings per share for the current year.

DAQO New Energy declared that its Board of Directors has initiated a share buyback plan on Tuesday, August 26th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the semiconductor company to repurchase shares of its stock through open market purchases. Shares repurchase plans are typically a sign that the company’s leadership believes its stock is undervalued.

Institutional Trading of DAQO New Energy

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DQ. Caitong International Asset Management Co. Ltd grew its position in shares of 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 valued at $31,000 after purchasing an additional 1,734 shares during the last quarter. Headlands Technologies LLC purchased a new position in DAQO New Energy during the second quarter worth $29,000. Profund Advisors LLC raised its holdings in shares of DAQO New Energy by 9.9% in the third quarter. Profund Advisors LLC now owns 25,537 shares of the semiconductor company’s stock worth $718,000 after acquiring an additional 2,305 shares during the last quarter. Pinpoint Asset Management Singapore Pte. Ltd. raised its holdings in shares of DAQO New Energy by 777.7% in the third quarter. Pinpoint Asset Management Singapore Pte. Ltd. now owns 2,633 shares of the semiconductor company’s stock worth $74,000 after acquiring an additional 2,333 shares during the last quarter. Finally, Q Fund Management Hong Kong Ltd lifted its position in shares of DAQO New Energy by 8.8% in the third quarter. Q Fund Management Hong Kong Ltd now owns 40,000 shares of the semiconductor company’s stock valued at $1,125,000 after acquiring an additional 3,224 shares in the last quarter. Institutional investors and hedge funds 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.