Daqo New Energy (NYSE:DQ) Shares Gap Up – Here’s What Happened

Daqo New Energy Corp. (NYSE:DQ)’s share price gapped up before the market opened on Friday . The stock had previously closed at $22.00, but opened at $24.66. Daqo New Energy shares last traded at $25.25, with a volume of 1,814,371 shares changing hands.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on DQ. Daiwa Capital Markets reissued a “hold” rating and issued a $25.00 target price (up previously from $18.00) on shares of Daqo New Energy in a research report on Wednesday, October 9th. HSBC raised Daqo New Energy from a “hold” rating to a “buy” rating in a research report on Wednesday, October 2nd. Roth Mkm dropped their target price on Daqo New Energy from $23.00 to $15.00 and set a “neutral” rating on the stock in a report on Wednesday, August 28th. Nomura Securities upgraded Daqo New Energy to a “strong-buy” rating in a report on Wednesday, August 28th. Finally, The Goldman Sachs Group assumed coverage on shares of Daqo New Energy in a research note on Thursday, July 11th. They issued a “buy” rating on the stock. One analyst has rated the stock with a sell rating, three have issued a hold rating, three have assigned a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $22.26.

Daqo New Energy Price Performance

The stock has a market cap of $1.66 billion, a PE ratio of 12.16 and a beta of 0.32. The company has a 50 day moving average price of $17.68 and a two-hundred day moving average price of $18.54.

Daqo New Energy (NYSE:DQ) last issued its earnings results 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 return on equity of 1.04% and a negative net margin of 4.11%. The business had revenue of $219.91 million during the quarter, compared to analysts’ expectations of $406.50 million. During the same period last year, the firm posted $1.34 EPS. As a group, equities analysts predict that Daqo New Energy Corp. will post -3.35 earnings per share for the current fiscal year.

Daqo New Energy declared that its board has authorized a share repurchase plan on Monday, July 22nd that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the semiconductor company to reacquire up to 8.6% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Hedge Funds Weigh In On Daqo New Energy

Several institutional investors have recently made changes to their positions in the business. PNC Financial Services Group Inc. raised its position 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 worth $42,000 after acquiring an additional 858 shares during the period. Blue Trust Inc. increased its stake in shares of Daqo New Energy by 12,187.5% in the 2nd quarter. Blue Trust Inc. now owns 1,966 shares of the semiconductor company’s stock worth $29,000 after purchasing an additional 1,950 shares in the last quarter. Signaturefd LLC raised its holdings in Daqo New Energy by 27.3% in the 3rd quarter. Signaturefd LLC now owns 2,809 shares of the semiconductor company’s stock worth $57,000 after purchasing an additional 602 shares during the period. AXA S.A. lifted its position in Daqo New Energy by 202.3% during the second quarter. AXA S.A. now owns 6,387 shares of the semiconductor company’s stock valued at $93,000 after purchasing an additional 4,274 shares in the last quarter. Finally, Rhumbline Advisers grew its holdings in Daqo New Energy by 22.2% during the second quarter. Rhumbline Advisers now owns 8,104 shares of the semiconductor company’s stock valued at $118,000 after purchasing an additional 1,470 shares during the period. 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.