DAQO New Energy (NYSE:DQ) Stock Price Down 5.3% – Time to Sell?

DAQO New Energy Corp. (NYSE:DQ)’s stock price fell 5.3% during trading on Tuesday . The company traded as low as $31.64 and last traded at $31.3510. 123,639 shares traded hands during trading, a decline of 88% from the average session volume of 1,052,990 shares. The stock had previously closed at $33.12.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Wall Street Zen upgraded DAQO New Energy from a “sell” rating to a “hold” rating in a research note on Monday, November 3rd. HSBC raised shares of DAQO New Energy from a “hold” rating to a “buy” rating and set a $31.00 price objective for the company in a report on Wednesday, August 27th. Hsbc Global Res raised DAQO New Energy from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 27th. Glj Research reaffirmed a “buy” rating and set a $30.51 price target on shares of DAQO New Energy in a report on Tuesday, August 26th. Finally, The Goldman Sachs Group set a $18.30 price objective 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 issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $27.04.

DAQO New Energy Stock Down 5.1%

The firm has a fifty day simple moving average of $31.02 and a 200-day simple moving average of $25.27. The company has a market capitalization of $2.11 billion, a P/E ratio of -6.11 and a beta of 0.66.

DAQO New Energy (NYSE:DQ) last issued its quarterly earnings data on Monday, October 27th. The semiconductor company reported ($0.22) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.61) by $0.39. The company had revenue of $244.60 million during the quarter, compared to the consensus estimate of $176.78 million. DAQO New Energy had a negative net margin of 53.74% and a negative return on equity of 5.89%. On average, sell-side analysts predict that DAQO New Energy Corp. will post -3.5 earnings per share for the current fiscal year.

DAQO New Energy announced that its board has initiated a stock repurchase program on Tuesday, August 26th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the semiconductor company to buy shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its stock is undervalued.

Institutional Trading of DAQO New Energy

Several institutional investors and hedge funds have recently added to or reduced their stakes in DQ. Vanguard Group Inc. increased its stake in shares of DAQO New Energy by 1.5% during the 1st quarter. Vanguard Group Inc. now owns 1,745,544 shares of the semiconductor company’s stock worth $31,612,000 after purchasing an additional 26,359 shares during the last quarter. Charles Schwab Investment Management Inc. increased its position in DAQO New Energy by 227.3% during the first quarter. Charles Schwab Investment Management Inc. now owns 162,085 shares of the semiconductor company’s stock worth $2,935,000 after buying an additional 112,562 shares during the last quarter. Continental General Insurance Co. raised its stake in DAQO New Energy by 0.8% in the first quarter. Continental General Insurance Co. now owns 5,966,202 shares of the semiconductor company’s stock valued at $108,048,000 after buying an additional 50,000 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in shares of DAQO New Energy by 39.1% in the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 31,364 shares of the semiconductor company’s stock valued at $476,000 after buying an additional 8,815 shares during the last quarter. Finally, Hsbc Holdings PLC boosted its stake in shares of DAQO New Energy by 514.3% during the 1st quarter. Hsbc Holdings PLC now owns 501,145 shares of the semiconductor company’s stock worth $9,026,000 after acquiring an additional 419,569 shares during the period. 47.22% of the stock is owned by institutional investors.

DAQO New Energy Company Profile

DAQO New Energy Corp. operates as a leading manufacturer of high-purity polysilicon and monocrystalline silicon wafers for the global solar photovoltaic industry. The company focuses on serving module makers and integrated solar producers with critical upstream materials, applying proprietary technologies and optimized processes to achieve high product purity and consistently low production costs. Its core offerings include solar-grade polysilicon—used in the ingot casting and wafer slicing stages—and premium mono-silicon wafers, which are a key input for high-efficiency solar cell production.

Founded in the late 2000s and listed on the New York Stock Exchange in 2010, DAQO New Energy established its first polysilicon facility in China’s Xinjiang Uygur Autonomous Region.