Daqo New Energy (NYSE:DQ) Trading Down 6% After Earnings Miss

Daqo New Energy Corp. (NYSE:DQ) shares were down 6% on Tuesday following a weaker than expected earnings announcement. The company traded as low as $20.20 and last traded at $20.25. Approximately 329,524 shares changed hands during mid-day trading, a decline of 73% from the average daily volume of 1,201,359 shares. The stock had previously closed at $21.55.

The semiconductor company reported $0.24 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.32). Daqo New Energy had a return on equity of 6.42% and a net margin of 18.24%. The business had revenue of $415.31 million for the quarter, compared to the consensus estimate of $491.90 million. During the same quarter in the prior year, the company earned $3.52 earnings per share.

Analysts Set New Price Targets

A number of brokerages recently weighed in on DQ. Roth Mkm restated a “neutral” rating and set a $23.00 price objective on shares of Daqo New Energy in a research report on Tuesday. Daiwa Capital Markets restated an “underperform” rating and set a $25.00 price target on shares of Daqo New Energy in a report on Friday, March 15th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $32.93.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. PNC Financial Services Group Inc. raised its holdings in shares of 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 acquiring an additional 858 shares during the last quarter. Quadrant Capital Group LLC raised its stake in shares of Daqo New Energy by 39.4% in the fourth quarter. Quadrant Capital Group LLC now owns 2,348 shares of the semiconductor company’s stock worth $62,000 after purchasing an additional 664 shares during the last quarter. Signaturefd LLC lifted its holdings in shares of Daqo New Energy by 112.4% in the fourth quarter. Signaturefd LLC now owns 6,839 shares of the semiconductor company’s stock valued at $182,000 after purchasing an additional 3,619 shares in the last quarter. Investment House LLC purchased a new position in shares of Daqo New Energy during the fourth quarter valued at approximately $266,000. Finally, Pathstone Family Office LLC grew its holdings in Daqo New Energy by 25.9% during the third quarter. Pathstone Family Office LLC now owns 10,562 shares of the semiconductor company’s stock worth $320,000 after buying an additional 2,171 shares in the last quarter. Institutional investors and hedge funds own 47.22% of the company’s stock.

Daqo New Energy Price Performance

The firm has a market cap of $1.26 billion, a P/E ratio of 3.55 and a beta of 0.22. The company has a fifty day moving average of $24.55 and a 200-day moving average of $23.84.

About Daqo New Energy

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.