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

Daqo New Energy Corp. (NYSE:DQ)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $19.44, but opened at $18.61. Daqo New Energy shares last traded at $18.62, with a volume of 109,194 shares trading hands.

Wall Street Analysts Forecast Growth

DQ has been the topic of a number of research reports. StockNews.com raised shares of Daqo New Energy to a “sell” rating in a research note on Monday, September 23rd. Hsbc Global Res raised shares of Daqo New Energy from a “hold” rating to a “strong-buy” rating in a research note 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. 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. Finally, Jefferies Financial Group decreased their target price on shares of Daqo New Energy from $38.40 to $34.05 and set a “buy” rating on the stock in a research note on Monday, August 26th. One analyst has rated the stock with a sell rating, one has assigned a hold rating, four have given a buy rating and three have assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Buy” and an average target price of $22.26.

Daqo New Energy Stock Performance

The stock’s 50 day simple moving average is $21.04 and its two-hundred day simple moving average is $18.46. The firm has a market capitalization of $1.24 billion, a PE ratio of -10.51 and a beta of 0.28.

Daqo New Energy (NYSE:DQ) last announced its quarterly earnings results on Wednesday, October 30th. The semiconductor company reported ($0.92) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.80) by ($0.12). The firm had revenue of $198.50 million for the quarter, compared to analyst estimates of $186.90 million. Daqo New Energy had a negative return on equity of 1.90% and a negative net margin of 9.16%. During the same quarter in the prior year, the business earned ($0.09) EPS. Equities research analysts expect that Daqo New Energy Corp. will post -3.5 earnings per share for the current fiscal year.

Institutional Trading of Daqo New Energy

Several institutional investors have recently added to or reduced their stakes in the stock. Geode Capital Management LLC increased its holdings in Daqo New Energy by 9.2% in the 3rd quarter. Geode Capital Management LLC now owns 33,546 shares of the semiconductor company’s stock valued at $683,000 after purchasing an additional 2,813 shares during the last quarter. Public Employees Retirement System of Ohio acquired a new position in shares of Daqo New Energy in the third quarter worth $1,053,000. Wellington Management Group LLP grew its stake in shares of Daqo New Energy by 26.0% in the third quarter. Wellington Management Group LLP now owns 128,422 shares of the semiconductor company’s stock worth $2,616,000 after acquiring an additional 26,462 shares in the last quarter. Wexford Capital LP grew its stake in shares of Daqo New Energy by 395.7% in the third quarter. Wexford Capital LP now owns 164,809 shares of the semiconductor company’s stock worth $3,357,000 after acquiring an additional 131,564 shares in the last quarter. Finally, State Street Corp grew its stake in shares of Daqo New Energy by 1.1% in the third quarter. State Street Corp now owns 842,921 shares of the semiconductor company’s stock worth $17,170,000 after acquiring an additional 8,983 shares in the last quarter. Institutional investors and hedge funds own 47.22% of the company’s stock.

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.