DAQO New Energy (NYSE:DQ) Shares Down 7.7% – Should You Sell?

DAQO New Energy Corp. (NYSE:DQ) was down 7.7% during trading on Tuesday . The company traded as low as $31.65 and last traded at $31.8550. Approximately 129,174 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 1,083,109 shares. The stock had previously closed at $34.50.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. New Street Research set a $15.40 price target on DAQO New Energy in a research report on Thursday, September 18th. Glj Research restated a “buy” rating and set a $30.51 price objective on shares of DAQO New Energy in a research note on Tuesday, August 26th. HSBC raised shares of DAQO New Energy from a “hold” rating to a “buy” rating and set a $31.00 target price for the company in a report on Wednesday, August 27th. Roth Capital set a $30.00 price target on shares of DAQO New Energy and gave the company a “neutral” rating in a report on Tuesday, October 28th. Finally, Wall Street Zen raised shares of DAQO New Energy from a “sell” rating to a “hold” rating in a research report on Monday, November 3rd. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $27.04.

DAQO New Energy Trading Down 7.7%

The stock has a market capitalization of $2.14 billion, a PE ratio of -6.18 and a beta of 0.73. The stock has a 50 day moving average price of $28.75 and a 200-day moving average price of $22.07.

DAQO New Energy (NYSE:DQ) last posted its earnings results on Monday, October 27th. The semiconductor company reported ($0.22) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.61) by $0.39. The company had revenue of $162.30 million for the quarter, compared to the consensus estimate of $176.78 million. DAQO New Energy had a negative return on equity of 5.89% and a negative net margin of 53.74%. Research analysts forecast that DAQO New Energy Corp. will post -3.5 earnings per share for the current year.

DAQO New Energy declared that its board has initiated a share repurchase program on Tuesday, August 26th that allows the company to repurchase $0.00 in outstanding shares. This repurchase authorization allows the semiconductor company to buy shares of its stock through open market purchases. Shares repurchase programs are typically an indication that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. XTX Topco Ltd purchased a new stake in shares of DAQO New Energy in the 3rd quarter worth $802,000. Wexford Capital LP purchased a new stake in DAQO New Energy in the third quarter worth about $616,000. Progeny 3 Inc. bought a new position in shares of DAQO New Energy in the third quarter worth about $2,369,000. Quarry LP purchased a new position in shares of DAQO New Energy during the 3rd quarter valued at about $26,000. Finally, Prelude Capital Management LLC grew its stake in shares of DAQO New Energy by 3.8% during the 3rd quarter. Prelude Capital Management LLC now owns 133,941 shares of the semiconductor company’s stock valued at $3,768,000 after acquiring an additional 4,949 shares during the period. Hedge funds and other institutional investors own 47.22% of the company’s stock.

About DAQO New Energy

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.