Daqo New Energy (NYSE:DQ) Upgraded by HSBC to Buy

Daqo New Energy (NYSE:DQ) was upgraded by equities research analysts at HSBC from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday, Briefing.com reports.

Other analysts have also recently issued reports about the company. Roth Mkm cut their price target on Daqo New Energy from $23.00 to $15.00 and set a “neutral” rating on the stock in a research note on Wednesday, August 28th. StockNews.com raised Daqo New Energy to a “sell” rating in a research report on Monday, September 23rd. Nomura Securities raised Daqo New Energy to a “strong-buy” rating in a report on Wednesday, August 28th. Jefferies Financial Group lowered their price target on Daqo New Energy from $38.40 to $34.05 and set a “buy” rating on the stock in a report on Monday, August 26th. Finally, The Goldman Sachs Group initiated coverage on Daqo New Energy in a research note on Thursday, July 11th. They issued a “buy” rating on the stock. Two equities research analysts have rated the stock with a sell rating, two have given a hold rating, three have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, Daqo New Energy has a consensus rating of “Hold” and an average target price of $22.26.

Daqo New Energy Stock Performance

Shares of Daqo New Energy stock traded up $1.16 during trading hours on Wednesday, reaching $21.87. 2,388,891 shares of the company were exchanged, compared to its average volume of 1,040,946. The firm has a market cap of $1.44 billion, a PE ratio of 10.27 and a beta of 0.30. The stock’s fifty day moving average is $16.21 and its 200 day moving average is $19.15. Daqo New Energy has a 1 year low of $13.62 and a 1 year high of $30.03.

Daqo New Energy (NYSE:DQ) last announced its quarterly earnings data on Monday, August 26th. The semiconductor company reported ($1.81) earnings per share (EPS) for the quarter, missing the consensus estimate 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 during the quarter, compared to analysts’ expectations of $406.50 million. During the same quarter in the previous year, the business posted $1.34 EPS. Research analysts expect that Daqo New Energy will post -3.35 earnings per share for the current year.

Daqo New Energy announced that its board has initiated 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 buy up to 8.6% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Daqo New Energy

A number of large investors have recently bought and sold shares of the stock. Point72 Asset Management L.P. acquired a new position in shares of Daqo New Energy during the second quarter worth $11,080,000. Sylebra Capital LLC boosted its stake in shares of Daqo New Energy by 103.9% during the 2nd quarter. Sylebra Capital LLC now owns 943,692 shares of the semiconductor company’s stock valued at $13,778,000 after buying an additional 480,980 shares during the last quarter. BNP Paribas Financial Markets grew its position in shares of Daqo New Energy by 142.1% during the first 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 in the last quarter. Jupiter Asset Management Ltd. acquired a new stake in Daqo New Energy in the first quarter valued at $9,647,000. Finally, Ariose Capital Management Ltd boosted its stake in Daqo New Energy by 23.9% during the 2nd quarter. Ariose Capital Management Ltd now owns 1,181,124 shares of the semiconductor company’s stock valued at $17,244,000 after acquiring an additional 228,200 shares during the last quarter. Hedge funds and other 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.