On Wednesday, shares of Daqo New Energy Corp. (NYSE:DQ) marked $199.11 per share versus a previous $241.99 closing price. With having a -17.72% loss, an insight into the fundamental values of Daqo New Energy Corp., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. DQ showed a rise of 288.89% within its YTD performance, with highs and lows between $35.73 – $243.64 during the period of 52 weeks, compared to the simple moving average of 138.03% in the period of the last 200 days.
Daiwa Securities equity researchers changed the status of Daqo New Energy Corp. (NYSE: DQ) shares to a “Buy” rating in the report published on March 10th, 2020. Other analysts, including JP Morgan, also published their reports on DQ shares. JP Morgan repeated the rating from the previous report, marking DQ under “Overweight” rating, in the report published on November 14th, 2019. Additionally, DQ shares got another “Outperform” rating from Credit Suisse, setting a target price of $58 on the company’s shares, according to the report published in August 24th, 2018. On the other hand, Morgan Stanley Downgrade the “Equal-Weight” rating for DQ shares, as published in the report on November 11th, 2015. ROTH Capital seems to be going bullish on the price of DQ shares, based on the price prediction for DQ, indicating that the shares will jump to $80, giving the shares “Buy” rating based on their report from October 31st, 2014. Another “Sell” rating came from Collins Stewart, providing a prediction for $80 price target according to the report published in June 3rd, 2011.
[bold-text]Daqo New Energy Corp. (DQ) Analysis[/bold-text]
The present dividend yield for DQ owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period. In addition, the growth of sales from quarter to quarter is recording 102.30%, hinting the company’s progress in the upcoming progress.
In order to gain a clear insight on the performance of Daqo New Energy Corp. (DQ) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 10.60% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 0.40 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.
Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while DQ is currently recording an average of 417.07K in volumes. The volatility of the stock on monthly basis is set at 10.71%, while the weekly volatility levels are marked at 13.18%with -8.98% of loss in the last seven days. Additionally, long-term investors are predicting the target price of $172.42, indicating growth from the present price of $199.11, which can represent yet another valuable research and analysis points that can help you decide whether to invest in DQ or pass.
[bold-text]What to Look for When Analyzing Daqo New Energy Corp. Shares?[/bold-text]
Daqo New Energy Corp. (DQ) is based in the China and it represents one of the well-known company operating with Technology sector. If you wish to compare DQ shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 47.29 for Daqo New Energy Corp., while the value 12.61 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 4.21 is supported by the yearly EPS growth of -56.80%.
Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 76.40%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 70.80% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.
[bold-text]Are Institutional Investors Increasing Stakes in DQ Shares?[/bold-text]
It appears that more than several institutional investors and hedge funds decided to increase stakes in DQ in the recent period. That is how Invesco Capital Management LLC now has an increase position in DQ by 14.80% in the first quarter, owning 516531 shares of DQ stocks, with the value of $69.86 million after the purchase of an additional 66,599 shares during the last quarter. In the meanwhile, Citigroup Global Markets, Inc. also increased their stake in DQ shares changed 1.31% in the first quarter, which means that the company now owns 502094 shares of company, all valued at $67.9 million after the acquisition of additional 6,500 shares during the last quarter.
Bank of America, NA acquired a new position in Daqo New Energy Corp. during the first quarter, with the value of $47.62 million, and Handelsbanken Fonder AB increased their stake in the company’s shares by 72.24% in the first quarter, now owning 132,360 shares valued at $42.68 million after the acquisition of the additional 315591 shares during the last quarter. In the end, Canada Pension Plan Investment Bo increased their position by 12.87% during the first quarter, now owning 315500 DQ shares, now holding the value of $42.67 million in DQ with the purchase of the additional 315,500 shares during the period of the last quarter. At the present, 70.80% of DQ shares are in the ownership of institutional investors.