Daqo New Energy (NYSE:DQ) Sees Unusually-High Trading Volume – Should You Buy?

Shares of Daqo New Energy Corp. (NYSE:DQ) saw unusually-strong trading volume on Wednesday . Approximately 1,329,073 shares were traded during mid-day trading, an increase of 13% from the previous session’s volume of 1,171,982 shares.The stock last traded at $23.52 and had previously closed at $22.51.

Analysts Set New Price Targets

DQ has been the subject of a number of recent research reports. Nomura Securities upgraded Daqo New Energy to a “strong-buy” rating in a report on Wednesday, August 28th. Daiwa America upgraded shares of Daqo New Energy to a “hold” rating in a research report on Wednesday, October 9th. Daiwa Capital Markets upgraded shares of Daqo New Energy from a “neutral” rating to an “outperform” rating in a report on Wednesday. The Goldman Sachs Group assumed coverage on shares of Daqo New Energy in a report on Thursday, July 11th. They set a “buy” rating on the stock. Finally, HSBC raised shares of Daqo New Energy from a “hold” rating to a “buy” rating in a research note on Wednesday, October 2nd. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, four have issued a buy rating and two have given a strong buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $22.26.

Daqo New Energy Trading Up 3.6 %

The company’s 50 day moving average is $18.29 and its 200 day moving average is $18.45. The company has a market cap of $1.54 billion, a PE ratio of 11.13 and a beta of 0.32.

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

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

Institutional Investors Weigh In On Daqo New Energy

Several large investors have recently modified their holdings of DQ. BNP Paribas Financial Markets raised its position in shares of Daqo New Energy by 142.1% in the 1st quarter. BNP Paribas Financial Markets now owns 696,865 shares of the semiconductor company’s stock worth $19,617,000 after acquiring an additional 409,057 shares in the last quarter. Acadian Asset Management LLC bought a new position in Daqo New Energy in the first quarter worth about $3,457,000. Jupiter Asset Management Ltd. purchased a new stake in shares of Daqo New Energy during the first quarter valued at about $9,647,000. Sylebra Capital LLC boosted its holdings in shares of Daqo New Energy by 103.9% in the 2nd quarter. Sylebra Capital LLC now owns 943,692 shares of the semiconductor company’s stock valued at $13,778,000 after buying an additional 480,980 shares in the last quarter. Finally, Marshall Wace LLP boosted its holdings in shares of Daqo New Energy by 112.3% in the 2nd quarter. Marshall Wace LLP now owns 322,635 shares of the semiconductor company’s stock valued at $4,710,000 after buying an additional 170,660 shares in the last quarter. 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.