JP Morgan slashes price target on Daqo New Energy Corp. [DQ] – find out why.

Daqo New Energy Corp. [NYSE: DQ] plunged by -$6.35 during the normal trading session on Monday and reaching a high of $79.69 during the day while it closed the day at $74.49. The company report on June 1, 2021 that Daqo’s subsidiary Xinjiang Daqo Starts IPO Registration with China Securities Regulatory Commission and Provides Preliminary Estimates of Revenue and Net Profit for Q2 2021.

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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, is in the process of applying for an initial public offering (“IPO”) of the Company’s major operational subsidiary, Xinjiang Daqo New Energy (“Xinjiang Daqo”), on the Shanghai Stock Exchange’s Sci-Tech innovation board. The application documents of the IPO were submitted by the Shanghai Stock Exchange to the China Securities Regulatory Commission for registration on May 28.

As part of its IPO process, Xinjiang Daqo is requested by the Shanghai Stock Exchange to publicly disclose estimates of Xinjiang Daqo’s revenue and net profit as prepared in accordance with the Accounting Standards for Business Enterprises (“PRC GAAP”) for the second quarter ending June 30, 2021 in its IPO prospectus submitted to the Shanghai Stock Exchange as follows:.

Daqo New Energy Corp. stock has also gained 0.15% of its value over the past 7 days. However, DQ stock has inclined by 3.40% in the 3 months of the year. Over the past six months meanwhile, it has gained 90.03% and gained 29.86% year-on date.

The market cap for DQ stock reached $5.21 billion, with 366.69 million shares outstanding and 363.92 million shares in the current float. Compared to the average trading volume of 2.75M shares, DQ reached a trading volume of 3452469 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 $98.91 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.

JP Morgan have made an estimate for Daqo New Energy Corp. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on June 07, 2021. The new note on the price target was released on April 22, 2021, representing the official price target for Daqo New Energy Corp. stock. Previously, the target price had yet another raise to $62, while Goldman analysts kept a Buy rating on DQ stock. On October 26, 2020, analysts decreased their price target for DQ shares from 220 to 200.

The Average True Range (ATR) for Daqo New Energy Corp. is set at 6.19, with the Price to Sales ratio for DQ stock in the period of the last 12 months amounting to 6.83. The Price to Book ratio for the last quarter was 32.11, with the Price to Cash per share for the same quarter was set at 2.50.

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 0.15. With this latest performance, DQ shares gained by 1.22% in over the last four-week period, additionally plugging by 90.03% over the last 6 months – not to mention a rise of 532.56% 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 48.14, with the RSI for the last a single of trading hit 46.85, and the three-weeks RSI is set at 48.47 for Daqo New Energy Corp. [DQ]. The present Moving Average for the last 50 days of trading for this stock 74.53, while it was recorded at 77.52 for the last single week of trading, and 62.55 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 +27.78 and a Gross Margin at +34.63. Daqo New Energy Corp.’s Net Margin is presently recorded at +19.14.

Return on Total Capital for DQ is now 18.85, given the latest momentum, and Return on Invested Capital for the company is 16.08. Return on Equity for this stock inclined to 19.39, with Return on Assets sitting at 10.60. 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 31.69. Additionally, DQ Total Debt to Total Capital is recorded at 24.06, with Total Debt to Total Assets ending up at 19.62. Long-Term Debt to Equity for the company is recorded at 16.06, with the Long-Term Debt to Total Capital now at 12.20.

Reflecting on the efficiency of the workforce at the company, Daqo New Energy Corp. [DQ] managed to generate an average of $68,215 per employee. Receivables Turnover for the company is 226.86 with a Total Asset Turnover recorded at a value of 0.55.Daqo New Energy Corp.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.80 and a Current Ratio set at 0.90.

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 0.03/share EPS, while the average EPS was predicted by analysts to be reported at -0.01/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 400.00%. 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 $3,026 million, or 61.20% of DQ stock, in the hands of institutional investors. The top three institutional holders of DQ stocks are: BLACKROCK INC. with ownership of 8,149,635, which is approximately 39.299% of the company’s market cap and around 76.40% of the total institutional ownership; INVESCO LTD., holding 2,355,768 shares of the stock with an approximate value of $175.48 million in DQ stocks shares; and PINPOINT ASSET MANAGEMENT LTD, currently with $143.05 million in DQ stock with ownership of nearly -10.28% of the company’s market capitalization.

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Positions in Daqo New Energy Corp. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 154 institutional holders increased their position in Daqo New Energy Corp. [NYSE:DQ] by around 14,253,445 shares. Additionally, 82 investors decreased positions by around 15,063,369 shares, while 12 investors held positions by with 11,311,390 shares. The mentioned changes placed institutional holdings at 40,628,204 shares, according to the latest SEC report filing. DQ stock had 89 new institutional investments in for a total of 4,299,227 shares, while 36 institutional investors sold positions of 3,767,874 shares during the same period.

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