Daqo New Energy (NYSE:DQ) Shares Gap Up – Should You Buy?

Daqo New Energy Corp. (NYSE:DQ) gapped up prior to trading on Tuesday . The stock had previously closed at $17.77, but opened at $18.91. Daqo New Energy shares last traded at $19.07, with a volume of 882,992 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. Hsbc Global Res raised Daqo New Energy from a “hold” rating to a “strong-buy” rating in a report on Wednesday, October 2nd. StockNews.com raised Daqo New Energy to a “sell” rating in a report on Monday, September 23rd. 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 report on Wednesday, August 28th. Daiwa Capital Markets upgraded shares of Daqo New Energy from a “neutral” rating to an “outperform” rating in a research note on Wednesday, October 30th. Finally, HSBC raised Daqo New Energy from a “hold” rating to a “buy” rating in a research note on Wednesday, October 2nd. One investment analyst has rated the stock with a sell rating, one has given a hold rating, four have assigned a buy rating and three have issued a strong buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $22.26.

Daqo New Energy Stock Performance

The company has a market capitalization of $1.27 billion, a price-to-earnings ratio of -10.38 and a beta of 0.28. The stock’s 50-day moving average price is $20.30 and its 200-day moving average price is $18.20.

Daqo New Energy (NYSE:DQ) last posted its earnings results on Wednesday, October 30th. The semiconductor company reported ($0.92) earnings per share for the quarter, missing the consensus estimate of ($0.80) by ($0.12). The firm had revenue of $198.50 million during the quarter, compared to analyst estimates of $186.90 million. Daqo New Energy had a negative net margin of 9.16% and a negative return on equity of 1.90%. During the same period last year, the company posted ($0.09) EPS. Analysts anticipate that Daqo New Energy Corp. will post -3.5 earnings per share for the current year.

Institutional Trading of Daqo New Energy

A number of hedge funds have recently added to or reduced their stakes in the business. Signaturefd LLC lifted its stake in shares of Daqo New Energy by 27.3% in the 3rd quarter. Signaturefd LLC now owns 2,809 shares of the semiconductor company’s stock valued at $57,000 after purchasing an additional 602 shares in the last quarter. Blue Trust Inc. grew its stake in Daqo New Energy by 132.3% during the third quarter. Blue Trust Inc. now owns 4,567 shares of the semiconductor company’s stock worth $93,000 after buying an additional 2,601 shares during the period. AXA S.A. increased its position in shares of Daqo New Energy by 202.3% in the second quarter. AXA S.A. now owns 6,387 shares of the semiconductor company’s stock worth $93,000 after acquiring an additional 4,274 shares in the last quarter. Rhumbline Advisers increased its holdings in Daqo New Energy by 22.2% in the 2nd 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 in the last quarter. Finally, Daiwa Securities Group Inc. raised its holdings in shares of Daqo New Energy by 15.4% during the 3rd quarter. Daiwa Securities Group Inc. now owns 10,500 shares of the semiconductor company’s stock valued at $214,000 after buying an additional 1,400 shares during the period. 47.22% of the stock is owned by institutional investors and hedge funds.

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.