Daiwa America Upgrades Daqo New Energy (NYSE:DQ) to Hold

Daqo New Energy (NYSE:DQ) was upgraded by investment analysts at Daiwa America to a “hold” rating in a research report issued to clients and investors on Wednesday, Zacks.com reports.

Several other equities analysts have also issued reports on the company. Daiwa Capital Markets reaffirmed a “hold” rating and set a $25.00 price objective (up previously from $18.00) on shares of Daqo New Energy in a report on Wednesday. HSBC raised Daqo New Energy from a “hold” rating to a “buy” rating in a report on Wednesday, October 2nd. Jefferies Financial Group lowered their price target on Daqo New Energy from $38.40 to $34.05 and set a “buy” rating on the stock in a report on Monday, August 26th. Hsbc Global Res raised Daqo New Energy from a “hold” rating to a “strong-buy” rating in a report on Wednesday, October 2nd. Finally, Roth Mkm lowered their price target on Daqo New Energy from $23.00 to $15.00 and set a “neutral” rating on the stock in a report on Wednesday, August 28th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, three have issued a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, Daqo New Energy currently has a consensus rating of “Moderate Buy” and a consensus target price of $22.26.

Daqo New Energy Price Performance

Daqo New Energy stock opened at $20.00 on Wednesday. Daqo New Energy has a 1-year low of $13.62 and a 1-year high of $30.03. The stock has a market cap of $1.32 billion, a PE ratio of 9.39 and a beta of 0.32. The stock’s fifty day moving average is $16.95 and its two-hundred day moving average is $19.04.

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

Daqo New Energy announced that its Board of Directors has approved a share buyback plan on Monday, July 22nd that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the semiconductor company to reacquire up to 8.6% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On Daqo New Energy

Hedge funds and other institutional investors have recently modified their holdings of the stock. PNC Financial Services Group Inc. lifted its position in shares of 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 valued at $42,000 after acquiring an additional 858 shares during the period. Blue Trust Inc. lifted its position in shares of Daqo New Energy by 12,187.5% during the 2nd quarter. Blue Trust Inc. now owns 1,966 shares of the semiconductor company’s stock valued at $29,000 after acquiring an additional 1,950 shares during the period. AXA S.A. lifted its position in shares of 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 during the period. Rhumbline Advisers raised its position in shares of Daqo New Energy by 22.2% during the 2nd 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 last quarter. Finally, Daiwa Securities Group Inc. acquired a new position in shares of Daqo New Energy during the 1st quarter worth approximately $256,000. 47.22% of the stock is currently 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.