HSBC Reaffirms Reduce Rating for Daqo New Energy (NYSE:DQ)

Daqo New Energy (NYSE:DQ)‘s stock had its “reduce” rating restated by investment analysts at HSBC in a research report issued to clients and investors on Monday, StockNewsAPI reports. They currently have a $17.50 target price on the semiconductor company’s stock, down from their previous target price of $23.50. HSBC’s target price would suggest a potential downside of 7.89% from the stock’s current price.

A number of other research analysts also recently issued reports on the company. Daiwa Capital Markets reissued an “underperform” rating and issued a $25.00 price target on shares of Daqo New Energy in a report on Friday, March 15th. Roth Mkm reiterated a “neutral” rating and issued a $23.00 target price on shares of Daqo New Energy in a research report on Tuesday, April 30th. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating and one has given a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $27.63.

Daqo New Energy Stock Performance

NYSE:DQ opened at $19.00 on Monday. The stock’s fifty day moving average is $24.58 and its 200 day moving average is $23.63. Daqo New Energy has a fifty-two week low of $17.30 and a fifty-two week high of $44.86. The firm has a market capitalization of $1.25 billion, a PE ratio of 8.92 and a beta of 0.32.

Daqo New Energy (NYSE:DQ) last announced its quarterly earnings results on Monday, April 29th. The semiconductor company reported $0.24 EPS for the quarter, missing the consensus estimate of $0.56 by ($0.32). The firm had revenue of $415.31 million for the quarter, compared to analysts’ expectations of $491.90 million. Daqo New Energy had a net margin of 7.84% and a return on equity of 2.46%. During the same quarter in the prior year, the business posted $3.52 EPS. Equities analysts forecast that Daqo New Energy will post 2.59 EPS for the current year.

Institutional Investors Weigh In On Daqo New Energy

A number of institutional investors have recently added to or reduced their stakes in the stock. Ariose Capital Management Ltd increased its position in shares of Daqo New Energy by 324.8% during the 3rd quarter. Ariose Capital Management Ltd now owns 800,124 shares of the semiconductor company’s stock worth $24,220,000 after purchasing an additional 611,755 shares during the last quarter. Mackenzie Financial Corp grew its holdings in shares of Daqo New Energy by 50.0% during the third quarter. Mackenzie Financial Corp now owns 1,449,737 shares of the semiconductor company’s stock worth $41,709,000 after purchasing an additional 483,254 shares during the last quarter. FengHe Fund Management Pte. Ltd. bought a new stake in shares of Daqo New Energy in the 4th quarter valued at about $11,480,000. BNP Paribas Financial Markets lifted its holdings in Daqo New Energy by 142.1% in the first quarter. BNP Paribas Financial Markets now owns 696,865 shares of the semiconductor company’s stock valued at $19,617,000 after buying an additional 409,057 shares during the period. Finally, Oaktree Capital Management LP lifted its stake in Daqo New Energy by 31.2% in the third quarter. Oaktree Capital Management LP now owns 1,350,410 shares of the semiconductor company’s stock valued at $40,877,000 after buying an additional 320,789 shares during the period. 47.22% of the stock is owned by institutional investors and hedge funds.

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.