Daqo New Energy (NYSE:DQ) Stock Price Up 4.1% - Should You Buy?

Shares of Daqo New Energy Corp. (NYSE:DQ - Get Free Report) shot up 4.1% during trading on Tuesday . The stock traded as high as $20.58 and last traded at $20.51. 165,900 shares were traded during trading, a decline of 84% from the average session volume of 1,059,157 shares. The stock had previously closed at $19.70.

Analyst Ratings Changes

Several brokerages have recently commented on DQ. Roth Mkm reduced their price objective on shares of Daqo New Energy from $23.00 to $15.00 and set a "neutral" rating for the company in a research report on Wednesday, August 28th. Daiwa Capital Markets reissued a "hold" rating and issued a $25.00 price target (up previously from $18.00) on shares of Daqo New Energy in a research report on Wednesday, October 9th. Daiwa America upgraded Daqo New Energy to a "hold" rating in a research note on Wednesday, October 9th. HSBC upgraded Daqo New Energy from a "hold" rating to a "buy" rating in a research note on Wednesday, October 2nd. Finally, Nomura Securities upgraded Daqo New Energy to a "strong-buy" rating in a research note on Wednesday, August 28th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, three have issued a buy rating and two have assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $22.26.

Daqo New Energy Stock Performance

The company has a market capitalization of $1.37 billion, a P/E ratio of 9.91 and a beta of 0.32. The stock has a 50 day moving average price of $17.35 and a 200 day moving average price of $18.53.

Daqo New Energy (NYSE:DQ - Get Free Report) last released its earnings results on Monday, August 26th. The semiconductor company reported ($1.81) EPS for the quarter, missing analysts' consensus estimates of ($0.56) by ($1.25). The business had revenue of $219.91 million for the quarter, compared to the consensus estimate 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 previous year, the firm earned $1.34 earnings per share. As a group, sell-side analysts expect that Daqo New Energy Corp. will post -3.35 earnings per share for the current year.

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

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in DQ. Point72 Asset Management L.P. purchased a new position in Daqo New Energy during the 2nd quarter valued at about $11,080,000. Sylebra Capital LLC grew its holdings in Daqo New Energy by 103.9% during the 2nd quarter. Sylebra Capital LLC now owns 943,692 shares of the semiconductor company's stock valued at $13,778,000 after buying an additional 480,980 shares in the last quarter. BNP Paribas Financial Markets grew its holdings in Daqo New Energy by 142.1% during the 1st quarter. BNP Paribas Financial Markets now owns 696,865 shares of the semiconductor company's stock valued at $19,617,000 after buying an additional 409,057 shares in the last quarter. Jupiter Asset Management Ltd. purchased a new position in Daqo New Energy during the 1st quarter valued at about $9,647,000. Finally, Ariose Capital Management Ltd grew its holdings in Daqo New Energy by 23.9% during the 2nd quarter. Ariose Capital Management Ltd now owns 1,181,124 shares of the semiconductor company's stock valued at $17,244,000 after buying an additional 228,200 shares in the last quarter. Hedge funds and other 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.