DAQO New Energy (NYSE:DQ) Stock Price Up 7% – Still a Buy?

DAQO New Energy Corp. (NYSE:DQ)’s stock price rose 7% on Friday . The company traded as high as $33.85 and last traded at $33.9540. Approximately 307,811 shares traded hands during mid-day trading, a decline of 72% from the average daily volume of 1,082,242 shares. The stock had previously closed at $31.72.

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. Roth Capital set a $30.00 target price on shares of DAQO New Energy and gave the company a “neutral” rating in a research note on Tuesday, October 28th. Glj Research restated a “buy” rating and set a $30.51 price objective on shares of DAQO New Energy in a research report on Tuesday, August 26th. The Goldman Sachs Group set a $18.30 target price on shares of DAQO New Energy and gave the stock a “neutral” rating in a report on Wednesday, October 29th. Citigroup boosted their target price on shares of DAQO New Energy from $27.00 to $37.00 and gave the company a “buy” rating in a research note on Monday, September 8th. Finally, HSBC raised DAQO New Energy from a “hold” rating to a “buy” rating and set a $31.00 price target on the stock in a report on Wednesday, August 27th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $27.04.

DAQO New Energy Price Performance

The company’s 50-day simple moving average is $28.62 and its two-hundred day simple moving average is $21.85. The firm has a market capitalization of $2.25 billion, a P/E ratio of -6.53 and a beta of 0.73.

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

DAQO New Energy announced that its Board of Directors has approved a share repurchase program on Tuesday, August 26th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the semiconductor company to buy shares 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 have recently made changes to their positions in the stock. Polunin Capital Partners Ltd bought a new stake in DAQO New Energy during the 3rd quarter worth approximately $37,183,000. Continental General Insurance Co. increased its stake in shares of DAQO New Energy by 11.3% in the third quarter. Continental General Insurance Co. now owns 6,641,986 shares of the semiconductor company’s stock worth $186,839,000 after purchasing an additional 675,784 shares in the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in shares of DAQO New Energy during the 3rd quarter valued at $18,280,000. Goldman Sachs Group Inc. lifted its stake in shares of DAQO New Energy by 117.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,159,835 shares of the semiconductor company’s stock valued at $21,005,000 after buying an additional 625,900 shares in the last quarter. Finally, Hsbc Holdings PLC lifted its stake in shares of DAQO New Energy by 514.3% during the 1st quarter. Hsbc Holdings PLC now owns 501,145 shares of the semiconductor company’s stock valued at $9,026,000 after buying an additional 419,569 shares in the last quarter. 47.22% of the stock is currently owned by 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.