Daqo New Energy (NYSE:DQ) Trading Down 6% After Earnings Miss

Shares of Daqo New Energy Corp. (NYSE:DQ) dropped 6% on Tuesday following a weaker than expected earnings announcement. The company traded as low as $20.20 and last traded at $20.25. Approximately 329,524 shares traded hands during trading, a decline of 73% from the average daily volume of 1,201,359 shares. The stock had previously closed at $21.55.

The semiconductor company reported $0.24 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.56 by ($0.32). The firm had revenue of $415.31 million during the quarter, compared to the consensus estimate of $491.90 million. Daqo New Energy had a return on equity of 6.42% and a net margin of 18.24%. During the same period last year, the firm posted $3.52 earnings per share.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on DQ shares. Roth Mkm restated a “neutral” rating and set a $23.00 target price on shares of Daqo New Energy in a research report on Tuesday. Daiwa Capital Markets reissued an “underperform” rating and issued a $25.00 target price on shares of Daqo New Energy in a research note on Friday, March 15th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $32.93.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Ariose Capital Management Ltd boosted its stake in shares of Daqo New Energy by 324.8% during the third quarter. Ariose Capital Management Ltd now owns 800,124 shares of the semiconductor company’s stock valued at $24,220,000 after purchasing an additional 611,755 shares in the last quarter. Mackenzie Financial Corp increased its holdings in shares of Daqo New Energy by 50.0% in the 3rd quarter. Mackenzie Financial Corp now owns 1,449,737 shares of the semiconductor company’s stock valued at $41,709,000 after acquiring an additional 483,254 shares during the period. FengHe Fund Management Pte. Ltd. bought a new position in shares of Daqo New Energy in the 4th quarter worth $11,480,000. Oaktree Capital Management LP lifted its stake in shares of Daqo New Energy by 31.2% during the 3rd quarter. Oaktree Capital Management LP now owns 1,350,410 shares of the semiconductor company’s stock worth $40,877,000 after purchasing an additional 320,789 shares during the last quarter. Finally, Franchise Capital Ltd bought a new stake in Daqo New Energy during the fourth quarter valued at about $4,788,000. Institutional investors own 47.22% of the company’s stock.

Daqo New Energy Price Performance

The firm has a market capitalization of $1.32 billion, a P/E ratio of 3.73 and a beta of 0.22. The stock’s fifty day simple moving average is $24.55 and its 200 day simple moving average is $23.84.

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.