Daqo New Energy (NYSE:DQ) Sees Large Volume Increase – Here’s Why

Daqo New Energy Corp. (NYSE:DQ) shares saw unusually-high trading volume on Wednesday . Approximately 1,329,073 shares changed hands during mid-day trading, an increase of 13% from the previous session’s volume of 1,171,982 shares.The stock last traded at $23.52 and had previously closed at $22.51.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on DQ. The Goldman Sachs Group assumed coverage on Daqo New Energy in a research report on Thursday, July 11th. They issued a “buy” rating for the company. Jefferies Financial Group reduced their target price on Daqo New Energy from $38.40 to $34.05 and set a “buy” rating for the company in a research report on Monday, August 26th. Daiwa Capital Markets raised shares of Daqo New Energy from a “neutral” rating to an “outperform” rating in a report on Wednesday. StockNews.com raised shares of Daqo New Energy to a “sell” rating in a report on Monday, September 23rd. Finally, HSBC raised shares of Daqo New Energy from a “hold” rating to a “buy” rating in a research note on Wednesday, October 2nd. One equities research analyst has rated the stock with a sell rating, one has given a hold rating, four have issued a buy rating and three have issued a strong buy rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Buy” and an average price target of $22.26.

Daqo New Energy Stock Performance

The stock has a market capitalization of $1.49 billion, a P/E ratio of -12.21 and a beta of 0.32. The stock has a 50-day simple moving average of $18.57 and a 200 day simple moving average of $18.50.

Daqo New Energy (NYSE:DQ) last announced its quarterly earnings data 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 business had revenue of $219.91 million during the quarter, compared to the consensus estimate of $406.50 million. Daqo New Energy had a negative net margin of 9.16% and a negative return on equity of 1.89%. During the same period in the previous year, the business posted $1.34 earnings per share. Equities analysts predict that Daqo New Energy Corp. will post -3.46 earnings per share for the current year.

Daqo New Energy declared that its board has initiated a share repurchase plan on Monday, July 22nd that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the semiconductor company to purchase up to 8.6% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of DQ. Van ECK Associates Corp raised its holdings in shares of Daqo New Energy by 4.3% in the third quarter. Van ECK Associates Corp now owns 18,657 shares of the semiconductor company’s stock valued at $415,000 after purchasing an additional 764 shares during the last quarter. Signaturefd LLC grew its position in Daqo New Energy by 27.3% in the third quarter. Signaturefd LLC now owns 2,809 shares of the semiconductor company’s stock valued at $57,000 after purchasing an additional 602 shares in the last quarter. Blue Trust Inc. increased its stake in Daqo New Energy by 132.3% in the 3rd quarter. Blue Trust Inc. now owns 4,567 shares of the semiconductor company’s stock valued at $93,000 after buying an additional 2,601 shares during the last quarter. Green Alpha Advisors LLC lifted its position in Daqo New Energy by 15.9% during the 3rd quarter. Green Alpha Advisors LLC now owns 23,877 shares of the semiconductor company’s stock worth $486,000 after buying an additional 3,270 shares in the last quarter. Finally, Point72 Asset Management L.P. acquired a new position in shares of Daqo New Energy during the 2nd quarter worth about $11,080,000. 47.22% of the stock is owned by institutional investors and hedge funds.

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.