Daqo New Energy (NYSE:DQ) Shares Gap Down – Here’s Why

Daqo New Energy Corp. (NYSE:DQ)’s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $20.94, but opened at $20.17. Daqo New Energy shares last traded at $21.27, with a volume of 402,071 shares changing hands.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the stock. Nomura Securities raised shares of Daqo New Energy to a “strong-buy” rating in a research report on Wednesday, August 28th. Jefferies Financial Group reduced their price target on shares of 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 lowered their price objective on Daqo New Energy from $23.00 to $15.00 and set a “neutral” rating on the stock in a research report on Wednesday, August 28th. StockNews.com upgraded Daqo New Energy to a “sell” rating in a research note on Monday, September 23rd. Finally, The Goldman Sachs Group initiated coverage on Daqo New Energy in a research report on Thursday, July 11th. They set a “buy” rating on the stock. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating, three have given a buy rating and two have given a strong buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $22.26.

Daqo New Energy Trading Down 3.3 %

The stock’s fifty day simple moving average is $16.95 and its 200 day simple moving average is $19.04.

Daqo New Energy (NYSE:DQ) last posted its quarterly earnings data on Monday, August 26th. The semiconductor company reported ($1.81) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.56) by ($1.25). Daqo New Energy had a negative net margin of 4.11% and a negative return on equity of 1.04%. The company had revenue of $219.91 million for the quarter, compared to analysts’ expectations of $406.50 million. During the same period in the previous year, the firm earned $1.34 earnings per share. As a group, equities research analysts predict that Daqo New Energy Corp. will post -3.35 EPS for the current year.

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

Institutional Investors Weigh In On Daqo New Energy

Hedge funds have recently bought and sold shares of the business. BNP Paribas Financial Markets increased its holdings in shares of 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 buying an additional 409,057 shares during the last quarter. Quadrature Capital Ltd bought a new stake in shares of Daqo New Energy in the 4th quarter valued at approximately $471,000. Franchise Capital Ltd purchased a new position in shares of Daqo New Energy in the 4th quarter worth approximately $4,788,000. Acadian Asset Management LLC bought a new position in shares of Daqo New Energy during the 1st quarter valued at approximately $3,457,000. Finally, Jupiter Asset Management Ltd. purchased a new stake in Daqo New Energy during the 1st quarter valued at $9,647,000. Hedge funds and other institutional investors own 47.22% of the company’s stock.

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.