Daqo New Energy (NYSE:DQ) Sees Large Volume Increase – Should You Buy?

Daqo New Energy Corp. (NYSE:DQ) shares saw an uptick in trading volume on Wednesday . 1,356,692 shares changed hands during trading, an increase of 27% from the previous session’s volume of 1,065,444 shares.The stock last traded at $22.86 and had previously closed at $20.82.

Analyst Ratings Changes

A number of research firms have commented on DQ. Nomura Securities upgraded shares of Daqo New Energy to a “strong-buy” rating in a research report on Wednesday, August 28th. Hsbc Global Res upgraded Daqo New Energy from a “hold” rating to a “strong-buy” rating in a report on Wednesday, October 2nd. 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. Roth Mkm decreased 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. Finally, Daiwa Capital Markets reiterated a “hold” rating and set a $25.00 price target (up previously from $18.00) on shares of Daqo New Energy in a research report on Wednesday, October 9th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, three have assigned a buy rating and two have assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $22.26.

Daqo New Energy Trading Down 1.0 %

The firm has a market cap of $1.45 billion, a price-to-earnings ratio of 10.33 and a beta of 0.32. The company has a 50 day moving average of $17.68 and a 200 day moving average of $18.54.

Daqo New Energy (NYSE:DQ) last issued its quarterly earnings data on Monday, August 26th. The semiconductor company reported ($1.81) earnings per share (EPS) for the quarter, missing the consensus estimate 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 firm posted $1.34 earnings per share. Equities analysts forecast that Daqo New Energy Corp. will post -3.35 EPS for the current fiscal year.

Daqo New Energy declared that its board has initiated a share buyback program on Monday, July 22nd that permits the company to buyback $100.00 million in shares. This buyback authorization permits the semiconductor company to reacquire up to 8.6% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s management believes its shares are undervalued.

Institutional Trading of Daqo New Energy

Institutional investors have recently modified their holdings of the company. Signaturefd LLC grew its holdings in shares of Daqo New Energy by 27.3% during the third quarter. Signaturefd LLC now owns 2,809 shares of the semiconductor company’s stock worth $57,000 after buying an additional 602 shares in the last quarter. PNC Financial Services Group Inc. grew its stake 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 worth $42,000 after acquiring an additional 858 shares in the last quarter. Rhumbline Advisers raised its holdings in shares of Daqo New Energy by 22.2% in the second quarter. Rhumbline Advisers now owns 8,104 shares of the semiconductor company’s stock valued at $118,000 after purchasing an additional 1,470 shares during the last quarter. Shell Asset Management Co. lifted its position in shares of Daqo New Energy by 20.6% in the first quarter. Shell Asset Management Co. now owns 10,734 shares of the semiconductor company’s stock worth $302,000 after purchasing an additional 1,834 shares in the last quarter. Finally, Blue Trust Inc. boosted its holdings in Daqo New Energy by 12,187.5% during the second quarter. Blue Trust Inc. now owns 1,966 shares of the semiconductor company’s stock worth $29,000 after purchasing an additional 1,950 shares during the last quarter. 47.22% of the stock is currently owned by institutional investors.

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.