Daqo New Energy (NYSE:DQ) Trading Down 6% on Disappointing Earnings

Daqo New Energy Corp. (NYSE:DQ)’s share price was down 6% during mid-day trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $20.20 and last traded at $20.25. Approximately 329,524 shares were traded during trading, a decline of 73% from the average daily volume of 1,201,359 shares. The stock had previously closed at $21.55.

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

Wall Street Analyst Weigh In

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

Institutional Investors Weigh In On Daqo New Energy

Large investors have recently bought and sold shares of the stock. PNC Financial Services Group Inc. boosted its holdings in shares of Daqo New Energy by 117.5% during the fourth quarter. PNC Financial Services Group Inc. now owns 1,588 shares of the semiconductor company’s stock worth $42,000 after purchasing an additional 858 shares during the last quarter. Quadrant Capital Group LLC grew its holdings in shares of Daqo New Energy by 39.4% during the 4th quarter. Quadrant Capital Group LLC now owns 2,348 shares of the semiconductor company’s stock worth $62,000 after purchasing an additional 664 shares during the period. Signaturefd LLC increased its position in Daqo New Energy by 112.4% during the 4th quarter. Signaturefd LLC now owns 6,839 shares of the semiconductor company’s stock worth $182,000 after purchasing an additional 3,619 shares in the last quarter. Investment House LLC acquired a new position in Daqo New Energy during the fourth quarter valued at approximately $266,000. Finally, Pathstone Family Office LLC grew its stake in Daqo New Energy by 25.9% during the third quarter. Pathstone Family Office LLC now owns 10,562 shares of the semiconductor company’s stock worth $320,000 after buying an additional 2,171 shares during the period. Institutional investors and hedge funds own 47.22% of the company’s stock.

Daqo New Energy Stock Performance

The firm has a fifty day moving average of $24.55 and a 200-day moving average of $23.84. The stock has a market capitalization of $1.32 billion, a price-to-earnings ratio of 3.73 and a beta of 0.22.

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.