Daiwa Capital Markets Reaffirms “Hold” Rating for Daqo New Energy (NYSE:DQ)

Daiwa Capital Markets reiterated their hold rating on shares of Daqo New Energy (NYSE:DQ) in a research report released on Wednesday, Benzinga reports. Daiwa Capital Markets currently has a $25.00 price target on the semiconductor company’s stock, up from their previous price target of $18.00.

A number of other equities analysts also recently issued reports on DQ. The Goldman Sachs Group initiated coverage on shares of Daqo New Energy in a research note on Thursday, July 11th. They set a buy rating on the stock. HSBC raised Daqo New Energy from a hold rating to a buy rating in a research note on Wednesday, October 2nd. Nomura Securities upgraded shares of Daqo New Energy to a strong-buy rating in a research report on Wednesday, August 28th. Jefferies Financial Group decreased their target price on Daqo New Energy from $38.40 to $34.05 and set a buy rating on the stock in a research note on Monday, August 26th. Finally, Roth Mkm dropped their price objective 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. One investment analyst has rated the stock with a sell rating, three have given a hold rating, three have issued a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat.com, Daqo New Energy presently has an average rating of Moderate Buy and a consensus target price of $22.26.

Daqo New Energy Price Performance

NYSE DQ opened at $20.50 on Wednesday. Daqo New Energy has a 1 year low of $13.62 and a 1 year high of $30.03. The business’s 50-day moving average is $17.06 and its 200 day moving average is $19.00. The stock has a market capitalization of $1.35 billion, a PE ratio of 9.62 and a beta of 0.32.

Daqo New Energy (NYSE:DQ) last released its quarterly earnings results on Monday, August 26th. The semiconductor company reported ($1.81) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.56) by ($1.25). The firm had revenue of $219.91 million during the quarter, compared to analysts’ expectations 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 quarter last year, the business earned $1.34 earnings per share. As a group, equities research analysts anticipate that Daqo New Energy will post -3.35 earnings per share for the current year.

Daqo New Energy announced that its board has approved a share repurchase program on Monday, July 22nd that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the semiconductor company to reacquire up to 8.6% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its shares are undervalued.

Hedge Funds Weigh In On Daqo New Energy

Hedge funds have recently added to or reduced their stakes in the business. Blue Trust Inc. increased its stake in Daqo New Energy by 12,187.5% in the second quarter. Blue Trust Inc. now owns 1,966 shares of the semiconductor company’s stock valued at $29,000 after purchasing an additional 1,950 shares during the last quarter. PNC Financial Services Group Inc. grew its position in Daqo New Energy by 117.5% in 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. raised its stake in Daqo New Energy by 202.3% during the 2nd quarter. AXA S.A. now owns 6,387 shares of the semiconductor company’s stock valued at $93,000 after acquiring an additional 4,274 shares in the last quarter. Rhumbline Advisers lifted its holdings in Daqo New Energy by 22.2% in the second quarter. Rhumbline Advisers now owns 8,104 shares of the semiconductor company’s stock worth $118,000 after purchasing an additional 1,470 shares during the period. Finally, Harel Insurance Investments & Financial Services Ltd. boosted its holdings in shares of Daqo New Energy by 37.9% in the second quarter. Harel Insurance Investments & Financial Services Ltd. now owns 14,442 shares of the semiconductor company’s stock valued at $211,000 after acquiring an additional 3,970 shares in the last quarter. 47.22% of the stock is currently owned by hedge funds and other institutional investors.

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.