Daqo New Energy (NYSE:DQ) Shares Gap Down Following Weak Earnings

Daqo New Energy Corp. (NYSE:DQ)’s share price gapped down before the market opened on Monday following a dissappointing earnings announcement. The stock had previously closed at $23.74, but opened at $21.75. Daqo New Energy shares last traded at $21.77, with a volume of 251,178 shares traded.

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

Analysts Set New Price Targets

Several analysts have recently commented on DQ shares. Daiwa Capital Markets reiterated an “underperform” rating and set a $25.00 price objective on shares of Daqo New Energy in a report on Friday, March 15th. Roth Mkm reissued a “neutral” rating and issued a $23.00 price target on shares of Daqo New Energy in a report on Tuesday. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and one has given a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $32.93.

Institutional Investors Weigh In On Daqo New Energy

Large investors have recently made changes to their positions in the stock. Ariose Capital Management Ltd raised its stake in shares of Daqo New Energy by 19.1% in the first quarter. Ariose Capital Management Ltd now owns 952,924 shares of the semiconductor company’s stock worth $26,825,000 after purchasing an additional 152,800 shares during the last quarter. Quadrature Capital Ltd purchased a new position in Daqo New Energy during the 4th quarter worth approximately $471,000. PNC Financial Services Group Inc. lifted its stake in 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. Prelude Capital Management LLC lifted its stake in Daqo New Energy by 0.8% during the 4th quarter. Prelude Capital Management LLC now owns 304,128 shares of the semiconductor company’s stock valued at $8,090,000 after acquiring an additional 2,548 shares during the period. Finally, Franchise Capital Ltd purchased a new stake in shares of Daqo New Energy in the 4th quarter valued at $4,788,000. 47.22% of the stock is owned by hedge funds and other institutional investors.

Daqo New Energy Stock Down 10.9 %

The stock has a market cap of $1.26 billion, a price-to-earnings ratio of 3.55 and a beta of 0.22. The stock’s 50 day moving average price is $24.55 and its two-hundred day moving average price is $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.