DAQO New Energy (NYSE:DQ) Shares Gap Down – Should You Sell?

DAQO New Energy Corp. (NYSE:DQ)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $14.43, but opened at $13.77. DAQO New Energy shares last traded at $13.6990, with a volume of 160,468 shares.

Wall Street Analyst Weigh In

DQ has been the subject of a number of research analyst reports. Zacks Research downgraded DAQO New Energy from a “hold” rating to a “strong sell” rating in a research report on Friday, August 7th. The Goldman Sachs Group downgraded shares of DAQO New Energy from a “neutral” rating to a “sell” rating and set a $10.00 target price on the stock. in a research note on Monday. Wall Street Zen lowered shares of DAQO New Energy from a “hold” rating to a “strong sell” rating in a research report on Saturday, May 2nd. Roth Capital set a $19.00 price target on shares of DAQO New Energy in a report on Thursday, April 30th. Finally, JPMorgan Chase & Co. lowered their price objective on shares of DAQO New Energy from $35.50 to $22.00 and set an “overweight” rating on the stock in a research report on Friday, July 31st. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $19.36.

DAQO New Energy Stock Performance

The company has a market cap of $918.28 million, a P/E ratio of -4.78 and a beta of 0.66. The business has a 50 day moving average price of $13.09 and a two-hundred day moving average price of $18.00.

DAQO New Energy (NYSE:DQ) last posted 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 company had revenue of $62.66 million for the quarter, compared to the consensus estimate of $52.93 million. DAQO New Energy had a negative return on equity of 3.26% and a negative net margin of 34.50%. As a group, research analysts expect that DAQO New Energy Corp. will post -1.96 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Millennium Management LLC raised its holdings in DAQO New Energy by 1,261.0% during the 1st quarter. Millennium Management LLC now owns 354,596 shares of the semiconductor company’s stock valued at $6,422,000 after buying an additional 328,541 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in shares of DAQO New Energy by 117.2% in the first quarter. Goldman Sachs Group Inc. now owns 1,159,835 shares of the semiconductor company’s stock worth $21,005,000 after purchasing an additional 625,900 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in DAQO New Energy by 34.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 174,912 shares of the semiconductor company’s stock valued at $3,168,000 after purchasing an additional 44,780 shares during the period. Jump Financial LLC increased its holdings in DAQO New Energy by 78.0% during the 2nd quarter. Jump Financial LLC now owns 212,200 shares of the semiconductor company’s stock valued at $3,219,000 after purchasing an additional 92,954 shares during the period. Finally, Bank of America Corp DE raised its position in DAQO New Energy by 267.0% during the 2nd quarter. Bank of America Corp DE now owns 193,805 shares of the semiconductor company’s stock valued at $2,940,000 after purchasing an additional 141,004 shares during the last quarter. Institutional investors 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.