Daqo New Energy (NYSE:DQ) Shares Gap Down – Should You Sell?

Daqo New Energy Corp. (NYSE:DQ) gapped down before the market opened on Thursday . The stock had previously closed at $20.12, but opened at $19.33. Daqo New Energy shares last traded at $19.34, with a volume of 69,216 shares traded.

Wall Street Analyst Weigh In

DQ has been the subject of a number of recent research reports. HSBC upgraded shares of Daqo New Energy from a “hold” rating to a “buy” rating in a research note on Wednesday, October 2nd. Hsbc Global Res upgraded shares of Daqo New Energy from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, October 2nd. Daiwa America raised shares of Daqo New Energy from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, October 30th. Nomura Securities raised shares of Daqo New Energy to a “strong-buy” rating in a research note on Wednesday, August 28th. Finally, Daiwa Capital Markets raised shares of Daqo New Energy from a “neutral” rating to an “outperform” rating in a research note on Wednesday, October 30th. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating, four have issued a buy rating and three have given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus price target of $22.26.

Daqo New Energy Price Performance

The firm’s 50-day simple moving average is $20.36 and its 200 day simple moving average is $18.41.

Daqo New Energy (NYSE:DQ) last announced its quarterly earnings data on Wednesday, October 30th. The semiconductor company reported ($0.92) EPS for the quarter, missing the consensus estimate of ($0.80) by ($0.12). Daqo New Energy had a negative return on equity of 1.90% and a negative net margin of 9.16%. The company had revenue of $198.50 million during the quarter, compared to the consensus estimate of $186.90 million. During the same period in the prior year, the firm posted ($0.09) EPS. On average, equities analysts forecast that Daqo New Energy Corp. will post -3.5 EPS for the current year.

Institutional Trading of Daqo New Energy

Several hedge funds and other institutional investors have recently modified their holdings of DQ. Mackenzie Financial Corp increased its holdings in Daqo New Energy by 6.4% during the 2nd quarter. Mackenzie Financial Corp now owns 2,496,997 shares of the semiconductor company’s stock worth $36,456,000 after acquiring an additional 149,610 shares during the period. Ariose Capital Management Ltd grew its stake in Daqo New Energy by 23.9% in the 2nd quarter. Ariose Capital Management Ltd now owns 1,181,124 shares of the semiconductor company’s stock worth $17,244,000 after buying an additional 228,200 shares in the last quarter. Sylebra Capital LLC grew its stake in Daqo New Energy by 103.9% in the 2nd quarter. Sylebra Capital LLC now owns 943,692 shares of the semiconductor company’s stock worth $13,778,000 after buying an additional 480,980 shares in the last quarter. State Street Corp grew its stake in Daqo New Energy by 1.1% in the 3rd quarter. State Street Corp now owns 842,921 shares of the semiconductor company’s stock worth $17,170,000 after buying an additional 8,983 shares in the last quarter. Finally, Point72 Asset Management L.P. purchased a new position in Daqo New Energy in the 2nd quarter worth approximately $11,080,000. Institutional investors own 47.22% of the company’s stock.

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.