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

Daqo New Energy Corp. (NYSE:DQ) was down 6% during mid-day trading on Tuesday following a weaker than expected earnings announcement. The company 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 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.32). The business had revenue of $415.31 million for the quarter, compared to the consensus estimate of $491.90 million. Daqo New Energy had a return on equity of 2.46% and a net margin of 7.84%. During the same quarter in the prior year, the firm posted $3.52 earnings per share.

Analyst Upgrades and Downgrades

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

Institutional Trading of Daqo New Energy

A number of institutional investors have recently modified their holdings of the company. Franklin Resources Inc. raised its holdings in Daqo New Energy by 2.0% during the fourth quarter. Franklin Resources Inc. now owns 2,728,399 shares of the semiconductor company’s stock worth $72,575,000 after acquiring an additional 53,860 shares in the last quarter. Mackenzie Financial Corp raised its holdings in Daqo New Energy by 23.8% during the fourth quarter. Mackenzie Financial Corp now owns 1,794,353 shares of the semiconductor company’s stock worth $47,730,000 after acquiring an additional 344,616 shares in the last quarter. Invesco Ltd. raised its holdings in Daqo New Energy by 6.9% during the third quarter. Invesco Ltd. now owns 1,658,153 shares of the semiconductor company’s stock worth $50,192,000 after acquiring an additional 107,235 shares in the last quarter. Oaktree Capital Management LP raised its holdings in Daqo New Energy by 31.2% during the third quarter. Oaktree Capital Management LP now owns 1,350,410 shares of the semiconductor company’s stock worth $40,877,000 after acquiring an additional 320,789 shares in the last quarter. Finally, Ariose Capital Management Ltd raised its holdings in Daqo New Energy by 19.1% during the first quarter. Ariose Capital Management Ltd now owns 952,924 shares of the semiconductor company’s stock worth $26,825,000 after acquiring an additional 152,800 shares in the last quarter. 47.22% of the stock is currently owned by institutional investors.

Daqo New Energy Stock Down 2.3 %

The firm has a market cap of $1.23 billion, a P/E ratio of 8.81 and a beta of 0.22. The firm has a fifty day moving average of $24.55 and a 200-day moving average of $23.79.

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.