DAQO New Energy (NYSE:DQ) Trading Down 8.3% – Should You Sell?

DAQO New Energy Corp. (NYSE:DQ) shares traded down 8.3% on Tuesday . The stock traded as low as $20.38 and last traded at $20.3360. 496,139 shares were traded during trading, a decline of 28% from the average session volume of 688,206 shares. The stock had previously closed at $22.18.

Analyst Ratings Changes

Several analysts have recently commented on DQ shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of DAQO New Energy in a research report on Friday, March 27th. New Street Research set a $18.13 price target on shares of DAQO New Energy in a research report on Tuesday, February 3rd. Finally, Glj Research lowered shares of DAQO New Energy from a “buy” rating to a “sell” rating and lowered their price target for the company from $30.51 to $18.13 in a research report on Tuesday, February 3rd. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, DAQO New Energy presently has a consensus rating of “Hold” and an average target price of $25.43.

DAQO New Energy Price Performance

The firm has a market capitalization of $1.35 billion, a price-to-earnings ratio of -7.91 and a beta of 0.80. The firm’s 50-day moving average price is $22.66 and its 200 day moving average price is $26.89.

DAQO New Energy (NYSE:DQ) last announced its quarterly earnings data on Monday, March 2nd. The semiconductor company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.07). The firm had revenue of $221.71 million for the quarter, compared to analysts’ expectations of $276.94 million. DAQO New Energy had a negative net margin of 25.62% and a negative return on equity of 2.92%. On average, analysts predict that DAQO New Energy Corp. will post -0.38 earnings per share for the current fiscal year.

Hedge Funds Weigh In On DAQO New Energy

Institutional investors and hedge funds have recently modified their holdings of the company. Allianz Asset Management GmbH purchased a new position in shares of DAQO New Energy during the third quarter valued at approximately $11,673,000. FengHe Fund Management Pte. Ltd. lifted its stake in shares of DAQO New Energy by 62.4% during the third quarter. FengHe Fund Management Pte. Ltd. now owns 469,833 shares of the semiconductor company’s stock valued at $13,216,000 after buying an additional 180,457 shares during the period. Vontobel Holding Ltd. purchased a new position in shares of DAQO New Energy during the third quarter valued at approximately $1,585,000. Polunin Capital Partners Ltd lifted its stake in shares of DAQO New Energy by 13.6% during the fourth quarter. Polunin Capital Partners Ltd now owns 1,458,705 shares of the semiconductor company’s stock valued at $43,032,000 after buying an additional 174,747 shares during the period. Finally, Harvest Fund Management Co. Ltd purchased a new position in shares of DAQO New Energy during the third quarter valued at approximately $7,096,000. Hedge funds and other institutional investors own 47.22% of the company’s stock.

About DAQO New Energy

DAQO New Energy Corp. operates as a leading manufacturer of high-purity polysilicon and monocrystalline silicon wafers for the global solar photovoltaic industry. The company focuses on serving module makers and integrated solar producers with critical upstream materials, applying proprietary technologies and optimized processes to achieve high product purity and consistently low production costs. Its core offerings include solar-grade polysilicon—used in the ingot casting and wafer slicing stages—and premium mono-silicon wafers, which are a key input for high-efficiency solar cell production.

Founded in the late 2000s and listed on the New York Stock Exchange in 2010, DAQO New Energy established its first polysilicon facility in China’s Xinjiang Uygur Autonomous Region.