Daiwa Capital Markets Reiterates Hold Rating for Daqo New Energy (NYSE:DQ)

Daqo New Energy (NYSE:DQ)‘s stock had its “hold” rating reiterated by equities research analysts at Daiwa Capital Markets in a note issued to investors on Wednesday, Benzinga reports. They presently have a $25.00 price objective on the semiconductor company’s stock, up from their previous price objective of $18.00. Daiwa Capital Markets’ target price suggests a potential upside of 25.00% from the stock’s previous close.

A number of other research analysts also recently weighed in on the stock. The Goldman Sachs Group began coverage on shares of Daqo New Energy in a report on Thursday, July 11th. They set a “buy” rating on the stock. StockNews.com raised shares of Daqo New Energy to a “sell” rating in a research report on Monday, September 23rd. Jefferies Financial Group reduced their price target on Daqo New Energy from $38.40 to $34.05 and set a “buy” rating for the company in a research report on Monday, August 26th. Roth Mkm decreased their price target on Daqo New Energy from $23.00 to $15.00 and set a “neutral” rating for the company in a research note on Wednesday, August 28th. 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, two have assigned a hold rating, three have issued a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat, Daqo New Energy presently has an average rating of “Moderate Buy” and a consensus price target of $22.26.

Daqo New Energy Price Performance

Shares of NYSE DQ opened at $20.00 on Wednesday. Daqo New Energy has a one year low of $13.62 and a one year high of $30.03. The business’s 50-day moving average price is $16.95 and its two-hundred day moving average price is $19.04. The company has a market capitalization of $1.32 billion, a P/E ratio of 9.39 and a beta of 0.32.

Daqo New Energy (NYSE:DQ) last announced its quarterly earnings results on Monday, August 26th. The semiconductor company reported ($1.81) EPS for the quarter, missing the consensus estimate of ($0.56) by ($1.25). The firm had revenue of $219.91 million during the quarter, compared to the consensus estimate 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 firm posted $1.34 EPS. On average, equities analysts anticipate that Daqo New Energy will post -3.35 EPS for the current year.

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

Institutional Trading of Daqo New Energy

Several hedge funds have recently added to or reduced their stakes in the business. Franchise Capital Ltd acquired a new position in Daqo New Energy during the 4th quarter valued at $4,788,000. Prelude Capital Management LLC lifted 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 buying an additional 2,548 shares during the period. PNC Financial Services Group Inc. grew its position in Daqo New Energy by 117.5% during the fourth 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 in the last quarter. Quadrature Capital Ltd bought a new position in Daqo New Energy during the fourth quarter valued at about $471,000. Finally, Ariose Capital Management Ltd raised its holdings in Daqo New Energy by 19.1% in the 1st quarter. Ariose Capital Management Ltd now owns 952,924 shares of the semiconductor company’s stock valued at $26,825,000 after acquiring an additional 152,800 shares in the last quarter. Institutional investors own 47.22% of the company’s stock.

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.