DAQO New Energy (NYSE:DQ) Trading Down 6.2% – Time to Sell?

DAQO New Energy Corp. (NYSE:DQ)’s stock price dropped 6.2% on Monday . The company traded as low as $12.83 and last traded at $12.83. 913,010 shares were traded during mid-day trading, an increase of 7% from the average daily volume of 855,393 shares. The stock had previously closed at $13.68.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on DQ. Zacks Research lowered DAQO New Energy from a “hold” rating to a “strong sell” rating in a report on Friday, August 7th. Weiss Ratings raised DAQO New Energy from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, August 11th. JPMorgan Chase & Co. lowered their price target on DAQO New Energy from $35.50 to $22.00 and set an “overweight” rating on the stock in a report on Friday, July 31st. New Street Research set a $10.00 price target on shares of DAQO New Energy in a research report on Monday, August 24th. Finally, The Goldman Sachs Group cut shares of DAQO New Energy from a “neutral” rating to a “sell” rating and set a $10.00 price objective for the company. in a research note on Monday, August 24th. Two research analysts have rated the stock with a Buy rating, one has issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Reduce” and an average price target of $19.36.

DAQO New Energy Price Performance

The company has a market capitalization of $864.09 million, a price-to-earnings ratio of -4.50 and a beta of 0.66. The business has a fifty day moving average price of $13.07 and a 200 day moving average price of $17.85.

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

Hedge Funds Weigh In On DAQO New Energy

Large investors have recently added to or reduced their stakes in the company. Nykredit A S bought a new position in shares of DAQO New Energy during the 2nd quarter worth approximately $28,000. BTG Pactual Asset Management US LLC acquired a new position in shares of DAQO New Energy during the second quarter worth approximately $224,000. Public Employees Retirement System of Ohio bought a new position in DAQO New Energy in the 2nd quarter valued at $273,000. Renaissance Technologies LLC bought a new stake in DAQO New Energy during the 1st quarter worth about $3,285,000. Finally, Himension Capital Singapore PTE. LTD. acquired a new position in DAQO New Energy in the first quarter valued at approximately $521,000. Institutional investors and hedge funds own 47.22% of the company’s stock.

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.