Short Interest in Daqo New Energy Corp. (NYSE:DQ) Decreases By 9.6%

Daqo New Energy Corp. (NYSE:DQ) was the recipient of a large drop in short interest in the month of September. As of September 30th, there was short interest totalling 3,570,000 shares, a drop of 9.6% from the September 15th total of 3,950,000 shares. Based on an average trading volume of 921,000 shares, the days-to-cover ratio is presently 3.9 days. Currently, 5.5% of the shares of the company are sold short.

Daqo New Energy Price Performance

Shares of DQ traded down $1.00 during mid-day trading on Thursday, hitting $17.90. The company’s stock had a trading volume of 1,086,439 shares, compared to its average volume of 1,066,481. The firm has a 50-day moving average price of $17.23 and a 200 day moving average price of $18.76. Daqo New Energy has a fifty-two week low of $13.62 and a fifty-two week high of $30.03. The stock has a market capitalization of $1.18 billion, a price-to-earnings ratio of 8.40 and a beta of 0.32.

Daqo New Energy (NYSE:DQ) last posted its quarterly 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). Daqo New Energy had a negative return on equity of 1.04% and a negative net margin of 4.11%. The business had revenue of $219.91 million during the quarter, compared to analyst estimates of $406.50 million. During the same quarter last year, the firm posted $1.34 EPS. As a group, equities analysts anticipate that Daqo New Energy will post -3.35 EPS for the current fiscal year.

Daqo New Energy announced that its Board of Directors has approved a stock repurchase plan on Monday, July 22nd that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the semiconductor company to repurchase up to 8.6% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the company. Hsbc Global Res upgraded Daqo New Energy from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, October 2nd. Roth Mkm decreased their target price on shares of Daqo New Energy from $23.00 to $15.00 and set a “neutral” rating for the company in a research report on Wednesday, August 28th. Nomura Securities upgraded shares of Daqo New Energy to a “strong-buy” rating in a research report on Wednesday, August 28th. HSBC raised shares of Daqo New Energy from a “hold” rating to a “buy” rating in a research note on Wednesday, October 2nd. Finally, Jefferies Financial Group lowered their price objective on shares of Daqo New Energy from $38.40 to $34.05 and set a “buy” rating on the stock in a research note on Monday, August 26th. One research analyst has rated the stock with a sell rating, three have issued a hold rating, three have given a buy rating and two have assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $22.26.

Institutional Investors Weigh In On Daqo New Energy

Several hedge funds have recently modified their holdings of DQ. BNP Paribas Financial Markets boosted its stake in Daqo New Energy by 142.1% in the 1st quarter. BNP Paribas Financial Markets now owns 696,865 shares of the semiconductor company’s stock worth $19,617,000 after purchasing an additional 409,057 shares during the period. Quadrature Capital Ltd purchased a new position in shares of Daqo New Energy during the fourth quarter valued at $471,000. Acadian Asset Management LLC acquired a new position in Daqo New Energy during the first quarter valued at $3,457,000. Jupiter Asset Management Ltd. purchased a new stake in Daqo New Energy in the 1st quarter worth about $9,647,000. Finally, Sylebra Capital LLC boosted its position in Daqo New Energy by 103.9% during 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 during the period. 47.22% of the stock is owned by hedge funds and other institutional investors.

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.