Daqo New Energy (NYSE:DQ) Shares Gap Down - Here's What Happened

Daqo New Energy Corp. (NYSE:DQ - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $29.14, but opened at $25.66. Daqo New Energy shares last traded at $22.51, with a volume of 3,491,917 shares.

Wall Street Analyst Weigh In

Several research firms recently weighed in on DQ. Daiwa America upgraded shares of Daqo New Energy to a "hold" rating in a report on Wednesday, October 9th. HSBC upgraded shares of Daqo New Energy from a "hold" rating to a "buy" rating in a report 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 note on Wednesday, October 2nd. Daiwa Capital Markets restated a "hold" rating and issued a $25.00 target price (up from $18.00) on shares of Daqo New Energy in a research note on Wednesday, October 9th. Finally, Roth Mkm dropped their price target on Daqo New Energy from $23.00 to $15.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 28th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, three have given a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, Daqo New Energy currently has a consensus rating of "Moderate Buy" and an average price target of $22.26.

Daqo New Energy Stock Down 22.8 %

The stock has a fifty day moving average of $18.14 and a 200-day moving average of $18.45. The stock has a market capitalization of $1.48 billion, a price-to-earnings ratio of 10.46 and a beta of 0.32.

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

Daqo New Energy declared that its Board of Directors has authorized a share repurchase program on Monday, July 22nd that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the semiconductor company to purchase up to 8.6% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's leadership believes its shares are undervalued.

Institutional Trading of Daqo New Energy

Institutional investors and hedge funds have recently modified their holdings of the stock. Blue Trust Inc. boosted its position in shares of Daqo New Energy by 12,187.5% during the 2nd quarter. Blue Trust Inc. now owns 1,966 shares of the semiconductor company's stock worth $29,000 after purchasing an additional 1,950 shares in the last quarter. PNC Financial Services Group Inc. boosted its position in Daqo New Energy by 117.5% during the 4th quarter. PNC Financial Services Group Inc. now owns 1,588 shares of the semiconductor company's stock worth $42,000 after acquiring an additional 858 shares during the period. Signaturefd LLC grew its holdings in Daqo New Energy by 27.3% during the third quarter. Signaturefd LLC now owns 2,809 shares of the semiconductor company's stock valued at $57,000 after purchasing an additional 602 shares during the last quarter. AXA S.A. boosted its stake in Daqo New Energy by 202.3% in the 2nd quarter. AXA S.A. now owns 6,387 shares of the semiconductor company's stock valued at $93,000 after buying an additional 4,274 shares in the last quarter. Finally, Rhumbline Advisers lifted its position in Daqo New Energy by 22.2% during the 2nd quarter. Rhumbline Advisers now owns 8,104 shares of the semiconductor company's stock valued at $118,000 after purchasing an additional 1,470 shares during the period. 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.