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

DAQO New Energy Corp. (NYSE:DQ)’s share price gapped up prior to trading on Tuesday. The stock had previously closed at $10.11, but opened at $10.78. DAQO New Energy shares last traded at $10.2910, with a volume of 71,883 shares changing hands.

DAQO New Energy News Roundup

Here are the key news stories impacting DAQO New Energy this week:

• Positive Sentiment: Third-quarter revenue surged to $194.2 million from $62.7 million in the prior quarter, while polysilicon sales volume more than tripled to 46,910 metric tons. The company also reduced its gross loss to $60.6 million from $82.7 million and improved EBITDA to negative $9.2 million from negative $29.3 million. Daqo New Energy Announces Unaudited Third Quarter 2026 Financial Results
• Positive Sentiment: Production costs declined to $5.37 per kilogram, cash costs fell to $4.23 per kilogram, and the average selling price improved modestly to $4.12 per kilogram. Daqo also ended the quarter with approximately $2.06 billion in cash and investments, providing financial flexibility while the polysilicon industry moves closer to a potential bottom. Daqo narrows losses in Q3 as polysilicon sector bottoms out
• Neutral Sentiment: JPMorgan lowered its DQ price target from $22.00 to $18.50 but maintained an Overweight rating. The revised target still implies substantial upside, although the reduction reflects ongoing concerns about industry pricing and profitability. JPMorgan Chase Daqo New Energy rating
• Negative Sentiment: Daqo reported a third-quarter loss of $0.78 per ADS, wider than the $0.48 consensus estimate and versus a $0.22 loss a year earlier. Gross margin remained deeply negative at 31.2%, and revenue, while sharply higher sequentially, was below the prior-year level of $244.6 million. Daqo New Energy Q3 results deepen focus on margin losses

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the company. JPMorgan Chase & Co. decreased their price objective on DAQO New Energy from $22.00 to $18.50 and set an “overweight” rating for the company in a research note on Wednesday. The Goldman Sachs Group lowered shares of DAQO New Energy from a “neutral” rating to a “sell” rating and set a $10.00 price target on the stock. in a report on Monday, August 24th. Weiss Ratings cut DAQO New Energy from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, October 19th. Zacks Research raised DAQO New Energy from a “strong sell” rating to a “hold” rating in a report on Tuesday, September 29th. Finally, Roth Capital set a $12.00 price target on DAQO New Energy in a report on Wednesday. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and an average target price of $13.73.

DAQO New Energy Stock Down 0.6%

The stock has a fifty day moving average price of $11.77 and a 200-day moving average price of $17.25. The firm has a market cap of $739.39 million, a price-to-earnings ratio of -3.85 and a beta of 0.67.

DAQO New Energy (NYSE:DQ) last announced its quarterly earnings data on Tuesday, October 27th. The semiconductor company reported ($0.78) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.48) by ($0.30). The firm had revenue of $194.15 million during the quarter, compared to analyst estimates of $61.90 million. DAQO New Energy had a negative net margin of 34.50% and a negative return on equity of 3.26%. During the same period in the prior year, the firm posted ($0.22) earnings per share. As a group, research analysts expect that DAQO New Energy Corp. will post -1.96 earnings per share for the current year.

Hedge Funds Weigh In On DAQO New Energy

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Renaissance Technologies LLC purchased a new position in DAQO New Energy in the first quarter worth $3,285,000. SG Americas Securities LLC boosted its position in shares of DAQO New Energy by 58.1% during the 1st quarter. SG Americas Securities LLC now owns 67,643 shares of the semiconductor company’s stock worth $1,439,000 after purchasing an additional 24,855 shares in the last quarter. Cygnus Capital Advisors LLC acquired a new position in shares of DAQO New Energy during the 2nd quarter worth $724,000. Hsbc Holdings PLC grew its stake in shares of DAQO New Energy by 65.9% during the 1st quarter. Hsbc Holdings PLC now owns 35,165 shares of the semiconductor company’s stock worth $739,000 after purchasing an additional 13,970 shares during the period. Finally, Bank of New York Mellon Corp increased its holdings in shares of DAQO New Energy by 7.6% in the 1st quarter. Bank of New York Mellon Corp now owns 30,134 shares of the semiconductor company’s stock valued at $641,000 after purchasing an additional 2,122 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. (NYSE: DQ) is a China-based manufacturer of high-purity polysilicon, a key raw material used to produce solar photovoltaic wafers, cells and modules. Through its operating subsidiaries, the company produces polysilicon in grades used primarily for monocrystalline and multicrystalline solar applications.

The company’s production operations are located in China, including facilities in Xinjiang. Its products are supplied to manufacturers in the solar photovoltaic industry, primarily within China’s extensive solar manufacturing supply chain, with the company serving customers in other markets through industry sales and distribution relationships.

Daqo New Energy was founded in 2007 and completed its initial public offering on the New York Stock Exchange in 2010.