Daqo New Energy (NYSE:DQ) Shares Gap Down – Here’s Why

Daqo New Energy Corp. (NYSE:DQ) gapped down prior to trading on Wednesday . The stock had previously closed at $20.94, but opened at $20.17. Daqo New Energy shares last traded at $21.27, with a volume of 402,071 shares.

Wall Street Analyst Weigh In

DQ has been the subject of a number of research analyst reports. Daiwa Capital Markets reaffirmed a “hold” rating and set a $25.00 price objective (up from $18.00) on shares of Daqo New Energy in a report on Wednesday. StockNews.com raised shares of Daqo New Energy to a “sell” rating in a research note on Monday, September 23rd. Hsbc Global Res upgraded shares of Daqo New Energy from a “hold” rating to a “strong-buy” rating in a report on Wednesday, October 2nd. Jefferies Financial Group dropped their price objective on shares of Daqo New Energy from $38.40 to $34.05 and set a “buy” rating for the company in a report on Monday, August 26th. Finally, The Goldman Sachs Group started coverage on Daqo New Energy in a report on Thursday, July 11th. They issued a “buy” rating on the stock. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, three have assigned a buy rating and two have issued a strong buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $22.26.

Daqo New Energy Trading Up 2.6 %

The stock has a market capitalization of $1.42 billion, a PE ratio of 10.09 and a beta of 0.32. The firm’s 50-day moving average price is $16.81 and its 200-day moving average price is $19.02.

Daqo New Energy (NYSE:DQ) last released its earnings results on Monday, August 26th. The semiconductor company reported ($1.81) earnings per share for the quarter, missing the consensus estimate of ($0.56) by ($1.25). The company had revenue of $219.91 million for the quarter, compared to the consensus estimate of $406.50 million. Daqo New Energy had a negative net margin of 4.11% and a negative return on equity of 1.04%. During the same period in the prior year, the firm posted $1.34 EPS. On average, equities research analysts predict that Daqo New Energy Corp. will post -3.35 earnings per share for the current fiscal year.

Daqo New Energy announced that its board has initiated a stock buyback program on Monday, July 22nd that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the semiconductor company to buy up to 8.6% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s management believes its shares are undervalued.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of DQ. Mackenzie Financial Corp boosted its stake in shares of Daqo New Energy by 6.4% during the second quarter. Mackenzie Financial Corp now owns 2,496,997 shares of the semiconductor company’s stock valued at $36,456,000 after purchasing an additional 149,610 shares during the period. Ariose Capital Management Ltd boosted its position in Daqo New Energy by 23.9% in the 2nd quarter. Ariose Capital Management Ltd now owns 1,181,124 shares of the semiconductor company’s stock valued at $17,244,000 after buying an additional 228,200 shares during the period. Sylebra Capital LLC grew its stake in Daqo New Energy by 103.9% in the 2nd quarter. Sylebra Capital LLC now owns 943,692 shares of the semiconductor company’s stock worth $13,778,000 after acquiring an additional 480,980 shares in the last quarter. Point72 Asset Management L.P. purchased a new position in shares of Daqo New Energy during the second quarter worth approximately $11,080,000. Finally, BNP Paribas Financial Markets raised its stake in shares of Daqo New Energy by 142.1% during the first quarter. BNP Paribas Financial Markets now owns 696,865 shares of the semiconductor company’s stock valued at $19,617,000 after acquiring an additional 409,057 shares in the last quarter. Hedge funds and other institutional investors own 47.22% of the company’s stock.

Daqo New Energy Company Profile

Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon to photovoltaic product manufacturers in the People's Republic of China. Its products are used in ingots, wafers, cells, and modules for solar power solutions. The company was formerly known as Mega Stand International Limited and changed its name to Daqo New Energy Corp.