DAQO New Energy (NYSE:DQ) Trading Up 5.6% – Time to Buy?

DAQO New Energy Corp. (NYSE:DQ) shot up 5.6% during trading on Monday . The company traded as high as $14.36 and last traded at $14.3410. Approximately 432,688 shares were traded during mid-day trading, a decline of 49% from the average session volume of 849,113 shares. The stock had previously closed at $13.58.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. Roth Capital set a $19.00 price target on DAQO New Energy in a report on Thursday, April 30th. JPMorgan Chase & Co. reduced their target price on shares of DAQO New Energy from $35.50 to $22.00 and set an “overweight” rating for the company in a research note on Friday, July 31st. The Goldman Sachs Group reissued a “neutral” rating and issued a $11.20 target price on shares of DAQO New Energy in a research report on Monday, July 27th. Zacks Research cut shares of DAQO New Energy from a “hold” rating to a “strong sell” rating in a report on Friday, August 7th. Finally, Wall Street Zen downgraded shares of DAQO New Energy from a “hold” rating to a “strong sell” rating in a research report on Saturday, May 2nd. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $22.35.

DAQO New Energy Price Performance

The firm’s 50 day moving average price is $13.14 and its 200-day moving average price is $18.19. The firm has a market cap of $979.52 million, a price-to-earnings ratio of -5.10 and a beta of 0.66.

DAQO New Energy (NYSE:DQ) last issued its quarterly earnings results on Thursday, August 20th. The semiconductor company reported ($1.20) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.57) by ($0.63). The firm had revenue of $62.66 million for the quarter, compared to the consensus estimate of $52.93 million. DAQO New Energy had a negative net margin of 34.50% and a negative return on equity of 3.26%. Analysts expect that DAQO New Energy Corp. will post -1.96 EPS for the current year.

Hedge Funds Weigh In On DAQO New Energy

Institutional investors have recently added to or reduced their stakes in the company. Renaissance Technologies LLC bought a new position in shares of DAQO New Energy in the 1st quarter worth $3,285,000. Banque Cantonale Vaudoise lifted its stake in DAQO New Energy by 37.5% in the first quarter. Banque Cantonale Vaudoise now owns 2,579 shares of the semiconductor company’s stock valued at $55,000 after buying an additional 703 shares during the period. SG Americas Securities LLC boosted its holdings in DAQO New Energy by 58.1% during the first quarter. SG Americas Securities LLC now owns 67,643 shares of the semiconductor company’s stock worth $1,439,000 after buying an additional 24,855 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new position in DAQO New Energy during the fourth quarter worth about $49,000. Finally, MidFirst Bank bought a new stake in shares of DAQO New Energy in the 4th quarter valued at about $236,000. 47.22% of the stock is owned by institutional investors.

About DAQO New Energy

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.