Daqo New Energy Corp. [NYSE: DQ] loss -14.00% or -15.39 points to close at $94.51 with a heavy trading volume of 2225980 shares. The company report on March 2, 2021 that Daqo New Energy Announces Three-Year High-Purity Polysilicon Supply Agreement with Zhonghuan Semiconductor.
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 it has signed a three-year high-purity polysilicon supply agreement with Zhonghuan Semiconductor (SZ:002129) (“Zhonghuan”) for its solar wafer business. Zhonghuan is a global leading high-quality mono-crystaline solar wafer producer.
Under the supply agreement, Daqo New Energy will provide Zhonghuan with high-purity mono-grade polysilicon in a total amount of 41,000 MT over three years from 2021 to 2023. Actual prices will be negotiated by both parties monthly according to market conditions. As part of the supply agreement, Zhonghuan will make an advance payment to Daqo New Energy.
It opened the trading session at $108.57, the shares rose to $110.34 and dropped to $94.0501, the range by which the price of stock traded the whole day. The daily chart for DQ points out that the company has recorded 318.89% gains over the past six months. However, it is still -1035.94% lower than its most recent low trading price.
If we look at the average trading volume of 2.79M shares, DQ reached to a volume of 2225980 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying 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 $105.22 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 1.80. 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 12.70, with the Price to Sales ratio for DQ stock in the period of the last 12 months amounting to 11.28. The Price to Book ratio for the last quarter was 51.09.
Trading performance analysis for DQ stock
Daqo New Energy Corp. [DQ] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -10.33. With this latest performance, DQ shares dropped by -8.61% in over the last four-week period, additionally plugging by 318.89% over the last 6 months – not to mention a rise of 647.35% 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 45.92, with the RSI for the last a single of trading hit 41.74, and the three-weeks RSI is set at 49.10 for Daqo New Energy Corp. [DQ]. The present Moving Average for the last 50 days of trading for this stock 90.74, while it was recorded at 104.80 for the last single week of trading, and 42.97 for the last 200 days.
Daqo New Energy Corp. [DQ]: A deeper dive into fundamental analysis
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.
Daqo New Energy Corp. [DQ]: An earnings per share (EPS) analysis
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.
An analysis of insider ownership at Daqo New Energy Corp. [DQ]
There are presently around $3,969 million, or 64.40% of DQ stock, in the hands of institutional investors. The top three institutional holders of DQ stocks are: BLACKROCK INC. with ownership of 5,850,452, which is approximately 519.404% of the company’s market cap and around 76.40% of the total institutional ownership; INVESCO LTD., holding 3,603,766 shares of the stock with an approximate value of $340.59 million in DQ stocks shares; and NINETY ONE UK LTD, currently with $282.46 million in DQ stock with ownership of nearly New 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 105 institutional holders increased their position in Daqo New Energy Corp. [NYSE:DQ] by around 20,414,612 shares. Additionally, 68 investors decreased positions by around 29,537,623 shares, while 9 investors held positions by with 7,955,306 shares. The mentioned changes placed institutional holdings at 41,996,929 shares, according to the latest SEC report filing. DQ stock had 61 new institutional investments in for a total of 9,595,569 shares, while 22 institutional investors sold positions of 2,194,555 shares during the same period.