Daqo New Energy Corp. [DQ] Is Currently 8.11 below its 200 Period Moving Avg: What Does This Mean?


Daqo New Energy Corp. [NYSE: DQ] traded at a high on 12/30/21, posting a 8.11 gain after which it closed the day’ session at $40.94. The company report on December 20, 2021 that Daqo New Energy’s Subsidiary Xinjiang Daqo signs strategic cooperation framework agreement with Baotou City for its future projects.

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, today announced that its subsidiary Xinjiang Daqo had entered into a strategic cooperation framework agreement with Baotou city, in China’s Inner Mongolia autonomous region, for its future projects related to polysilicon, silicon metal and silicone.

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According to the strategic cooperation framework agreement between Xinjiang Daqo and Baotou city, Xinjiang Daqo plans to build polysilicon projects for the solar industry with a total annual production capacity of 200,000 Metric Tons (MT), polysilicon projects for the semiconductor industry with a total annual capacity of 21,000 MT, silicon metal projects with a total annual capacity of 300,000 MT and silicone projects with a total annual capacity of 200,000 MT in Baotou city. These projects will be conducted in two phases. The first phase will start construction in the first quarter of 2022 and is expected to be completed in the second quarter of 2023, and it consists of a 100,000 MT polysilicon project for the solar industry and a 1,000 MT polysilicon project for the semiconductor industry with an estimated total investment of RMB8.55 billion. The plan and time table for the second phase will be determined later according to market conditions. According to the agreement, Xinjiang Daqo will enjoy favorable electricity rate and other relevant preferential treatment. Moreover, Xinjiang Daqo will be granted the highest priority for the use of green energy within Baotou City, including the direct supply of green energy to the new projects.

The results of the trading session contributed to over 2402029 shares changing hands. Over the past one week, the price volatility of Daqo New Energy Corp. stands at 7.28% while the volatility over the past one month is 7.53%.

The market cap for DQ stock reached $3.09 billion, with 74.05 million shares outstanding and 70.13 million shares in the current float. Compared to the average trading volume of 1.60M shares, DQ reached a trading volume of 2402029 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus 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 $96.38 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 2.00. 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.

Daiwa Securities have made an estimate for Daqo New Energy Corp. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on August 31, 2021. While these analysts kept the previous recommendation, Nomura raised their target price from $48 to $53. The new note on the price target was released on August 19, 2021, representing the official price target for Daqo New Energy Corp. stock. Previously, the target price had yet another raise to $112, while HSBC Securities analysts kept a Buy rating on DQ stock.

The Average True Range (ATR) for Daqo New Energy Corp. is set at 3.36, with the Price to Sales ratio for DQ stock in the period of the last 12 months amounting to 2.02. The Price to Book ratio for the last quarter was 1.52, with the Price to Cash per share for the same quarter was set at 14.26.

How has DQ stock performed recently?

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 2.56. With this latest performance, DQ shares dropped by -28.60% in over the last four-week period, additionally sinking by -38.01% over the last 6 months – not to mention a drop of -28.25% 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 37.35, with the RSI for the last a single of trading hit 43.39, and the three-weeks RSI is set at 36.83 for Daqo New Energy Corp. [DQ]. The present Moving Average for the last 50 days of trading for this stock 57.56, while it was recorded at 38.63 for the last single week of trading, and 63.84 for the last 200 days.

Daqo New Energy Corp. [DQ]: Deeper insight into the 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 3.40 and a Current Ratio set at 3.50.

Earnings analysis for Daqo New Energy Corp. [DQ]

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. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Daqo New Energy Corp. go to 74.87%.

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Insider trade positions for Daqo New Energy Corp. [DQ]

There are presently around $1,455 million, or 56.20% of DQ stock, in the hands of institutional investors. The top three institutional holders of DQ stocks are: BLACKROCK INC. with ownership of 4,033,500, which is approximately 5.842% of the company’s market cap and around 76.40% of the total institutional ownership; FRANKLIN RESOURCES INC, holding 2,770,804 shares of the stock with an approximate value of $104.93 million in DQ stocks shares; and BNP PARIBAS ASSET MANAGEMENT HOLDING S.A., currently with $92.93 million in DQ stock with ownership of nearly 99.58% of the company’s market capitalization.

Positions in Daqo New Energy Corp. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 114 institutional holders increased their position in Daqo New Energy Corp. [NYSE:DQ] by around 9,835,863 shares. Additionally, 98 investors decreased positions by around 8,029,422 shares, while 27 investors held positions by with 20,548,723 shares. The mentioned changes placed institutional holdings at 38,414,008 shares, according to the latest SEC report filing. DQ stock had 36 new institutional investments in for a total of 4,077,622 shares, while 35 institutional investors sold positions of 1,970,186 shares during the same period.