Daqo New Energy (NYSE:DQ) Sees Strong Trading Volume – Here’s What Happened

Daqo New Energy Corp. (NYSE:DQ) saw unusually-strong trading volume on Monday . Approximately 1,667,069 shares changed hands during mid-day trading, an increase of 59% from the previous session’s volume of 1,049,658 shares.The stock last traded at $26.48 and had previously closed at $24.48.

Analyst Ratings Changes

Several analysts have weighed in on the stock. StockNews.com raised shares of Daqo New Energy to a “sell” rating in a research report on Monday, September 23rd. HSBC upgraded Daqo New Energy from a “hold” rating to a “buy” rating in a research report on Wednesday, October 2nd. The Goldman Sachs Group started coverage on Daqo New Energy in a research report on Thursday, July 11th. They set a “buy” rating on the stock. Roth Mkm reduced their price target on Daqo New Energy from $23.00 to $15.00 and set a “neutral” rating for the company in a report on Wednesday, August 28th. Finally, Nomura Securities upgraded Daqo New Energy to a “strong-buy” rating in a research report on Wednesday, August 28th. Two analysts have rated the stock with a sell rating, one has assigned a hold rating, three have assigned a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat.com, Daqo New Energy has a consensus rating of “Moderate Buy” and an average price target of $22.26.

Daqo New Energy Trading Down 19.8 %

The stock has a market cap of $1.38 billion, a price-to-earnings ratio of 9.83 and a beta of 0.32. The firm’s 50-day moving average is $16.81 and its two-hundred day moving average is $19.02.

Daqo New Energy (NYSE:DQ) last announced its earnings results on Monday, August 26th. The semiconductor company reported ($1.81) EPS for the quarter, missing analysts’ consensus estimates 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 net margin of 4.11% and a negative return on equity of 1.04%. During the same period in the previous year, the company earned $1.34 EPS. On average, analysts predict that Daqo New Energy Corp. will post -3.35 earnings per share for the current year.

Daqo New Energy declared that its Board of Directors has authorized a share repurchase plan on Monday, July 22nd that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the semiconductor company to reacquire up to 8.6% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its stock is undervalued.

Hedge Funds Weigh In On Daqo New Energy

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Franchise Capital Ltd purchased a new stake in Daqo New Energy in the fourth quarter valued at $4,788,000. Prelude Capital Management LLC boosted its stake in shares of Daqo New Energy by 0.8% in the fourth quarter. Prelude Capital Management LLC now owns 304,128 shares of the semiconductor company’s stock valued at $8,090,000 after purchasing an additional 2,548 shares during the period. PNC Financial Services Group Inc. grew its holdings in shares of Daqo New Energy by 117.5% in the fourth quarter. PNC Financial Services Group Inc. now owns 1,588 shares of the semiconductor company’s stock valued at $42,000 after purchasing an additional 858 shares in the last quarter. Quadrature Capital Ltd purchased a new stake in Daqo New Energy during the 4th quarter worth approximately $471,000. Finally, Ariose Capital Management Ltd lifted its holdings in Daqo New Energy by 19.1% during the 1st quarter. Ariose Capital Management Ltd now owns 952,924 shares of the semiconductor company’s stock worth $26,825,000 after buying an additional 152,800 shares in the last quarter. 47.22% of the stock is currently owned by institutional investors and hedge funds.

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.