DAQO New Energy (NYSE:DQ) Stock Falls 6.1% – Should You Sell?

DAQO New Energy Corp. (NYSE:DQ) fell 6.1% during mid-day trading on Monday. The stock traded as low as $12.11 and last traded at $11.8820. Approximately 20,754 shares changed hands during mid-day trading, a decline of 97% from the average daily volume of 805,900 shares. The stock had previously closed at $12.65.

Analysts Set New Price Targets

Several research firms have weighed in on DQ. The Goldman Sachs Group downgraded DAQO New Energy from a “neutral” rating to a “sell” rating and set a $10.00 price target on the stock. in a research note on Monday, August 24th. Zacks Research upgraded DAQO New Energy from a “strong sell” rating to a “hold” rating in a research note on Tuesday, September 29th. New Street Research set a $10.00 target price on DAQO New Energy in a report on Monday, August 24th. Weiss Ratings lowered DAQO New Energy from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, October 19th. Finally, JPMorgan Chase & Co. dropped their target price on DAQO New Energy from $22.00 to $18.50 and set an “overweight” rating on the stock in a research report on Wednesday, October 28th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Reduce” and an average target price of $13.73.

DAQO New Energy Stock Performance

The firm has a market cap of $804.75 million, a PE ratio of -3.48 and a beta of 0.50. The stock has a 50 day simple moving average of $11.39 and a two-hundred day simple moving average of $16.76.

DAQO New Energy (NYSE:DQ) last issued its earnings results on Tuesday, October 27th. The semiconductor company reported ($0.78) EPS for the quarter, missing analysts’ consensus estimates of ($0.48) by ($0.30). The company had revenue of $194.15 million during the quarter, compared to analysts’ expectations of $61.90 million. DAQO New Energy had a negative return on equity of 3.90% and a negative net margin of 45.46%. During the same quarter in the previous year, the company earned ($0.22) EPS. Equities research analysts forecast that DAQO New Energy Corp. will post -3.69 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Renaissance Technologies LLC purchased a new stake in DAQO New Energy in the 1st quarter worth approximately $3,285,000. Cygnus Capital Advisors LLC acquired a new stake in shares of DAQO New Energy during the 2nd quarter worth approximately $724,000. BTG Pactual Asset Management US LLC acquired a new stake in shares of DAQO New Energy during the 2nd quarter worth approximately $224,000. Russell Investments Group Ltd. grew its stake in shares of DAQO New Energy by 132.9% during the 3rd quarter. Russell Investments Group Ltd. now owns 12,631 shares of the semiconductor company’s stock worth $143,000 after purchasing an additional 7,207 shares during the period. Finally, Nykredit A S purchased a new position in shares of DAQO New Energy during the 2nd quarter valued at approximately $28,000. 47.22% of the stock is owned by institutional investors and hedge funds.

About DAQO New Energy

Daqo New Energy Corp. (NYSE: DQ) is a China-based manufacturer of high-purity polysilicon, a key raw material used to produce solar photovoltaic wafers, cells and modules. Through its operating subsidiaries, the company produces polysilicon in grades used primarily for monocrystalline and multicrystalline solar applications.

The company’s production operations are located in China, including facilities in Xinjiang. Its products are supplied to manufacturers in the solar photovoltaic industry, primarily within China’s extensive solar manufacturing supply chain, with the company serving customers in other markets through industry sales and distribution relationships.

Daqo New Energy was founded in 2007 and completed its initial public offering on the New York Stock Exchange in 2010.