Daqo New Energy (NYSE:DQ) Raised to “Buy” at HSBC

HSBC upgraded shares of Daqo New Energy (NYSE:DQ) from a hold rating to a buy rating in a report issued on Wednesday morning, MarketBeat.com reports.

Several other equities research analysts have also recently commented on the stock. Roth Mkm cut their price target on shares of Daqo New Energy from $23.00 to $15.00 and set a neutral rating on the stock in a research report on Wednesday, August 28th. The Goldman Sachs Group began coverage on Daqo New Energy in a research report on Thursday, July 11th. They set a buy rating for the company. StockNews.com upgraded Daqo New Energy to a sell rating in a research note on Monday, September 23rd. Hsbc Global Res upgraded Daqo New Energy from a moderate sell rating to a hold rating in a research note on Tuesday, August 27th. Finally, Jefferies Financial Group decreased their target price on shares of Daqo New Energy from $38.40 to $34.05 and set a buy rating for the company in a research note on Monday, August 26th. Two equities research analysts have rated the stock with a sell rating, one has issued a hold rating, three have given a buy rating and two have issued a strong buy rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of Moderate Buy and an average price target of $22.26.

Daqo New Energy Stock Performance

NYSE:DQ opened at $24.48 on Wednesday. The stock has a 50-day simple moving average of $16.55 and a 200 day simple moving average of $19.18. Daqo New Energy has a 52-week low of $13.62 and a 52-week high of $30.03. The company has a market cap of $1.62 billion, a PE ratio of 11.49 and a beta of 0.32.

Daqo New Energy (NYSE:DQ) last issued its quarterly earnings results on Monday, August 26th. The semiconductor company reported ($1.81) earnings per share for the quarter, missing the consensus estimate of ($0.56) by ($1.25). The business had revenue of $219.91 million for the quarter, compared to the consensus estimate of $406.50 million. Daqo New Energy had a negative return on equity of 1.04% and a negative net margin of 4.11%. During the same period in the prior year, the business earned $1.34 earnings per share. On average, research analysts predict that Daqo New Energy will post -3.35 earnings per share for the current fiscal year.

Daqo New Energy declared that its board has approved a stock buyback plan on Monday, July 22nd that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the semiconductor company to purchase up to 8.6% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of DQ. Blue Trust Inc. lifted its position in Daqo New Energy by 12,187.5% during the second quarter. Blue Trust Inc. now owns 1,966 shares of the semiconductor company’s stock worth $29,000 after acquiring an additional 1,950 shares during the last quarter. PNC Financial Services Group Inc. lifted its holdings in Daqo New Energy by 117.5% during the 4th quarter. PNC Financial Services Group Inc. now owns 1,588 shares of the semiconductor company’s stock worth $42,000 after purchasing an additional 858 shares during the last quarter. AXA S.A. grew its holdings in Daqo New Energy by 202.3% in the 2nd quarter. AXA S.A. now owns 6,387 shares of the semiconductor company’s stock valued at $93,000 after buying an additional 4,274 shares in the last quarter. Rhumbline Advisers grew 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 buying an additional 1,470 shares in the last quarter. Finally, Harel Insurance Investments & Financial Services Ltd. increased its position in Daqo New Energy by 37.9% during the 2nd quarter. Harel Insurance Investments & Financial Services Ltd. now owns 14,442 shares of the semiconductor company’s stock worth $211,000 after buying an additional 3,970 shares during the period. Institutional investors and hedge funds 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.