Daqo New Energy Corp. [NYSE: DQ] plunged by -$7.89 during the normal trading session on Wednesday and reaching a high of $83.67 during the day while it closed the day at $77.41. The company report on December 23, 2020 that Daqo New Energy Announces Long-Term High-Purity Polysilicon Supply Agreements with Two Customers.
Daqo New Energy Corp. (NYSE: DQ) (“Daqo New Energy”, the “Company” or “we”), a leading manufacturer of high-purity polysilicon for the global solar PV industry, announced that its subsidiary Xinjiang Daqo New Energy has signed long-term high-purity polysilicon supply agreements with a subsidiary of JA Solar (SZ:002459) and with another leading solar company.
Under the supply agreement with JA Solar, Daqo New Energy will provide JA Solar with high-purity mono-grade polysilicon in a total amount of 32,400 MT ~ 43,200 MT between January 2021 and December 2023. Actual volume and prices will be negotiated monthly by both parties according to market conditions.
Daqo New Energy Corp. stock has also gained 5.32% of its value over the past 7 days. However, DQ stock has inclined by 82.38% in the 3 months of the year. Over the past six months meanwhile, it has gained 315.56% and gained 34.95% year-on date.
The market cap for DQ stock reached $5.57 billion, with 356.41 million shares outstanding and 61.19 million shares in the current float. Compared to the average trading volume of 2.81M shares, DQ reached a trading volume of 3341485 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Daqo New Energy Corp. [DQ]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DQ shares is $51.80 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DQ stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Goldman have made an estimate for Daqo New Energy Corp. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on December 08, 2020. While these analysts kept the previous recommendation, ROTH Capital dropped their target price from $220 to $200. The new note on the price target was released on October 26, 2020, representing the official price target for Daqo New Energy Corp. stock.
The Average True Range (ATR) for Daqo New Energy Corp. is set at 6.74, with the Price to Sales ratio for DQ stock in the period of the last 12 months amounting to 10.18. The Price to Book ratio for the last quarter was 41.84.
DQ stock trade performance evaluation
Daqo New Energy Corp. [DQ] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.32. With this latest performance, DQ shares gained by 79.44% in over the last four-week period, additionally plugging by 315.56% over the last 6 months – not to mention a rise of 556.80% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DQ stock in for the last two-week period is set at 66.40, with the RSI for the last a single of trading hit 64.70, and the three-weeks RSI is set at 66.58 for Daqo New Energy Corp. [DQ]. The present Moving Average for the last 50 days of trading for this stock 51.05, while it was recorded at 79.23 for the last single week of trading, and 27.58 for the last 200 days.
Daqo New Energy Corp. [DQ]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Daqo New Energy Corp. [DQ] shares currently have an operating margin of +11.98 and a Gross Margin at +22.89. Daqo New Energy Corp.’s Net Margin is presently recorded at +8.08.
Return on Total Capital for DQ is now 5.02, given the latest momentum, and Return on Invested Capital for the company is 4.11. Return on Equity for this stock inclined to 5.19, with Return on Assets sitting at 2.75. When it comes to the capital structure of this company, Daqo New Energy Corp. [DQ] has a Total Debt to Total Equity ratio set at 67.32. Additionally, DQ Total Debt to Total Capital is recorded at 40.23, with Total Debt to Total Assets ending up at 31.75. Long-Term Debt to Equity for the company is recorded at 26.75, with the Long-Term Debt to Total Capital now at 15.99.
Reflecting on the efficiency of the workforce at the company, Daqo New Energy Corp. [DQ] managed to generate an average of $14,964 per employee. Receivables Turnover for the company is 44.43 with a Total Asset Turnover recorded at a value of 0.34.Daqo New Energy Corp.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.40 and a Current Ratio set at 0.50.
Earnings per share (EPS) analysis for Daqo New Energy Corp. [DQ] stock
With the latest financial reports released by the company, Daqo New Energy Corp. posted 0.34/share EPS, while the average EPS was predicted by analysts to be reported at 0.18/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 88.90%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DQ.
Daqo New Energy Corp. [DQ]: Insider Ownership positions
There are presently around $3,932 million, or 84.60% of DQ stock, in the hands of institutional investors. The top three institutional holders of DQ stocks are: NOMURA HOLDINGS INC with ownership of 18,281,125, which is approximately 46.249% of the company’s market cap and around 76.40% of the total institutional ownership; MORGAN STANLEY, holding 3,147,685 shares of the stock with an approximate value of $243.66 million in DQ stocks shares; and INVESCO LTD., currently with $215.8 million in DQ stock with ownership of nearly 7.943% of the company’s market capitalization.
Positions in Daqo New Energy Corp. stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 81 institutional holders increased their position in Daqo New Energy Corp. [NYSE:DQ] by around 13,959,301 shares. Additionally, 45 investors decreased positions by around 5,738,635 shares, while 12 investors held positions by with 31,098,260 shares. The mentioned changes placed institutional holdings at 50,796,196 shares, according to the latest SEC report filing. DQ stock had 54 new institutional investments in for a total of 3,388,575 shares, while 18 institutional investors sold positions of 2,046,370 shares during the same period.