Daqo New Energy (NYSE:DQ) Trading Down 4.2% – Time to Sell?

Shares of Daqo New Energy Corp. (NYSE:DQ) dropped 4.2% during trading on Thursday . The company traded as low as $17.94 and last traded at $18.10. Approximately 133,978 shares were traded during mid-day trading, a decline of 87% from the average daily volume of 1,061,744 shares. The stock had previously closed at $18.90.

Analyst Ratings Changes

Several research analysts have recently commented on the company. Daiwa Capital Markets reiterated a “hold” rating and set a $25.00 price target (up previously from $18.00) on shares of Daqo New Energy in a report on Wednesday, October 9th. Daiwa America raised shares of Daqo New Energy to a “hold” rating in a research note on Wednesday, October 9th. The Goldman Sachs Group initiated coverage on shares of Daqo New Energy in a report on Thursday, July 11th. They set a “buy” rating for the company. Jefferies Financial Group decreased their price objective on Daqo New Energy from $38.40 to $34.05 and set a “buy” rating on the stock in a report on Monday, August 26th. Finally, Nomura Securities raised Daqo New Energy to a “strong-buy” rating in a research note on Wednesday, August 28th. One analyst has rated the stock with a sell rating, three have given a hold rating, three have given a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $22.26.

Daqo New Energy Stock Down 6.6 %

The business has a 50-day simple moving average of $17.21 and a 200-day simple moving average of $18.76. The company has a market cap of $1.17 billion, a PE ratio of 8.38 and a beta of 0.32.

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

Daqo New Energy declared that its board has approved a stock buyback program on Monday, July 22nd that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the semiconductor company to reacquire up to 8.6% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s leadership believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. PNC Financial Services Group Inc. lifted its holdings in Daqo New Energy by 117.5% during the 4th quarter. PNC Financial Services Group Inc. now owns 1,588 shares of the semiconductor company’s stock worth $42,000 after buying an additional 858 shares during the last quarter. Rhumbline Advisers boosted its stake in Daqo New Energy by 22.2% during the 2nd quarter. Rhumbline Advisers now owns 8,104 shares of the semiconductor company’s stock worth $118,000 after purchasing an additional 1,470 shares during the period. Shell Asset Management Co. grew its position in Daqo New Energy by 20.6% during the 1st quarter. Shell Asset Management Co. now owns 10,734 shares of the semiconductor company’s stock worth $302,000 after purchasing an additional 1,834 shares during the last quarter. Blue Trust Inc. increased its stake in Daqo New Energy by 12,187.5% in the second quarter. Blue Trust Inc. now owns 1,966 shares of the semiconductor company’s stock valued at $29,000 after purchasing an additional 1,950 shares during the period. Finally, Boston Partners raised its holdings in shares of Daqo New Energy by 3.3% in the first quarter. Boston Partners now owns 78,340 shares of the semiconductor company’s stock valued at $2,205,000 after buying an additional 2,538 shares during the last quarter. 47.22% of the stock is currently owned by hedge funds and other institutional investors.

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.