Daqo New Energy (NYSE:DQ) Trading Up 8.2% – Still a Buy?

Daqo New Energy Corp. (NYSE:DQ)’s stock price traded up 8.2% on Thursday . The stock traded as high as $24.20 and last traded at $24.08. 788,285 shares changed hands during trading, a decline of 33% from the average session volume of 1,185,062 shares. The stock had previously closed at $22.26.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. Daiwa America raised Daqo New Energy to a “hold” rating in a report on Wednesday, October 9th. 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. Jefferies Financial Group dropped their target price on Daqo New Energy from $38.40 to $34.05 and set a “buy” rating for the company in a report on Monday, August 26th. Nomura Securities upgraded Daqo New Energy to a “strong-buy” rating in a research report on Wednesday, August 28th. Finally, HSBC upgraded shares of Daqo New Energy from a “hold” rating to a “buy” rating in a research report on Wednesday, October 2nd. One investment analyst has rated the stock with a sell rating, two have given a hold rating, four have issued a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $22.26.

Daqo New Energy Stock Up 1.7 %

The firm has a 50-day moving average of $18.42 and a two-hundred day moving average of $18.47. The company has a market capitalization of $1.49 billion, a PE ratio of -23.72 and a beta of 0.32.

Daqo New Energy (NYSE:DQ) last issued its earnings results on Monday, August 26th. The semiconductor company reported ($1.81) EPS for the quarter, missing analysts’ consensus estimates of ($0.56) by ($1.25). The business had revenue of $219.91 million during the quarter, compared to analyst estimates 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 quarter last year, the company earned $1.34 earnings per share. Equities analysts predict that Daqo New Energy Corp. will post -3.35 EPS for the current fiscal year.

Daqo New Energy announced that its Board of Directors has authorized a stock repurchase program on Monday, July 22nd that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the semiconductor company to purchase up to 8.6% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On Daqo New Energy

A number of hedge funds have recently bought and sold shares of DQ. PNC Financial Services Group Inc. raised its stake in Daqo New Energy by 117.5% in the fourth quarter. PNC Financial Services Group Inc. now owns 1,588 shares of the semiconductor company’s stock valued at $42,000 after buying an additional 858 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. grew its position in Daqo New Energy by 15.4% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 125,425 shares of the semiconductor company’s stock worth $3,531,000 after purchasing an additional 16,710 shares during the last quarter. BNP Paribas Financial Markets increased its stake in Daqo New Energy by 142.1% in the first quarter. BNP Paribas Financial Markets now owns 696,865 shares of the semiconductor company’s stock valued at $19,617,000 after purchasing an additional 409,057 shares during the period. Capstone Investment Advisors LLC purchased a new stake in shares of Daqo New Energy in the first quarter valued at about $264,000. Finally, Daiwa Securities Group Inc. acquired a new stake in shares of Daqo New Energy during the first quarter worth about $256,000. Institutional investors and hedge funds 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.