Daqo New Energy (NYSE:DQ) Shares Gap Up - Here's Why

Daqo New Energy Corp. (NYSE:DQ - Get Free Report)'s stock price gapped up prior to trading on Friday . The stock had previously closed at $17.89, but opened at $18.99. Daqo New Energy shares last traded at $18.83, with a volume of 162,654 shares changing hands.

Analysts Set New Price Targets

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

Daqo New Energy Stock Up 6.1 %

The company's fifty day moving average is $17.28 and its 200 day moving average is $18.70. The stock has a market cap of $1.25 billion, a PE ratio of 8.92 and a beta of 0.32.

Daqo New Energy (NYSE:DQ - Get Free Report) last released 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). The company had revenue of $219.91 million during 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 quarter in the prior year, the company earned $1.34 EPS. Equities analysts expect that Daqo New Energy Corp. will post -3.35 EPS for the current year.

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

Hedge Funds Weigh In On Daqo New Energy

Several institutional investors and hedge funds have recently made changes to their positions in DQ. Point72 Asset Management L.P. bought a new position in shares of Daqo New Energy during the second quarter worth about $11,080,000. Sylebra Capital LLC grew its position 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 worth $13,778,000 after acquiring an additional 480,980 shares in the last quarter. BNP Paribas Financial Markets increased its holdings 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 valued at $19,617,000 after acquiring an additional 409,057 shares during the last quarter. Jupiter Asset Management Ltd. acquired a new stake in shares of Daqo New Energy during the 1st quarter valued at approximately $9,647,000. Finally, Ariose Capital Management Ltd lifted its stake in Daqo New Energy by 23.9% during the second quarter. Ariose Capital Management Ltd now owns 1,181,124 shares of the semiconductor company's stock worth $17,244,000 after purchasing an additional 228,200 shares during the last quarter. 47.22% of the stock is currently owned by hedge funds and other institutional investors.

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.