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

Daqo New Energy Corp. (NYSE:DQ)’s share price gapped down before the market opened on Thursday . The stock had previously closed at $20.12, but opened at $19.33. Daqo New Energy shares last traded at $19.34, with a volume of 69,216 shares traded.

Wall Street Analysts Forecast Growth

DQ has been the topic of several research reports. HSBC upgraded Daqo New Energy from a “hold” rating to a “buy” rating in a research note on Wednesday, October 2nd. Daiwa America upgraded Daqo New Energy from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, October 30th. Daiwa Capital Markets upgraded Daqo New Energy from a “neutral” rating to an “outperform” rating in a research note on Wednesday, October 30th. Nomura Securities upgraded Daqo New Energy to a “strong-buy” rating in a research note on Wednesday, August 28th. Finally, StockNews.com upgraded Daqo New Energy to a “sell” rating in a research note on Monday, September 23rd. One research analyst has rated the stock with a sell rating, one has assigned 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, Daqo New Energy has an average rating of “Buy” and an average price target of $22.26.

Daqo New Energy Stock Performance

The firm has a market capitalization of $1.24 billion, a P/E ratio of -10.17 and a beta of 0.32. The business has a 50 day simple moving average of $20.49 and a two-hundred day simple moving average of $18.42.

Daqo New Energy (NYSE:DQ) last announced its earnings results on Wednesday, October 30th. The semiconductor company reported ($0.92) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.80) by ($0.12). The company had revenue of $198.50 million for the quarter, compared to the consensus estimate 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 quarter in the previous year, the firm earned ($0.09) earnings per share. On average, equities analysts anticipate that Daqo New Energy Corp. will post -3.5 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Point72 Asset Management L.P. purchased a new position in shares of Daqo New Energy during the second quarter worth approximately $11,080,000. Sylebra Capital LLC raised its position in Daqo New Energy by 103.9% in the 2nd quarter. Sylebra Capital LLC now owns 943,692 shares of the semiconductor company’s stock worth $13,778,000 after purchasing an additional 480,980 shares during the period. Ariose Capital Management Ltd lifted its stake in Daqo New Energy by 23.9% in the second quarter. Ariose Capital Management Ltd now owns 1,181,124 shares of the semiconductor company’s stock worth $17,244,000 after purchasing an additional 228,200 shares during the last quarter. Marshall Wace LLP boosted its position in Daqo New Energy by 112.3% during the second quarter. Marshall Wace LLP now owns 322,635 shares of the semiconductor company’s stock valued at $4,710,000 after buying an additional 170,660 shares during the period. Finally, Mackenzie Financial Corp grew its stake in shares of Daqo New Energy by 6.4% during the second quarter. Mackenzie Financial Corp now owns 2,496,997 shares of the semiconductor company’s stock valued at $36,456,000 after buying an additional 149,610 shares during the last quarter. 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.