Daqo New Energy Corp. (NYSE: DQ) stock fell -2.33% on Friday to $45.67 against a previous-day closing price of $46.76. With 0.56 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.28 million shares. During the session, the Semiconductor Equipment & Materials company that operates in wider Technology sector, reached to the highest price of $47.34 whereas the lowest price it dropped to was $45.66. The 52-week range on DQ shows that it touched its highest point at $77.18 and its lowest point at $32.20 during that stretch. It currently has a 1-year price target of $62.93. Beta for the stock currently stands at 0.54.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DQ was down-trending over the past week, with a drop of -3.49%, but this was up by 13.41% over a month. Three-month performance dropped to -9.97% while six-month performance fell -28.92%. The stock gained 20.76% in the past year, while it has gained 18.29% so far this year. A look at the trailing 12-month EPS for DQ yields 21.23 with Next year EPS estimates of 19.74. For the next quarter, that number is 7.37. This implies an EPS growth rate of 465.90% for this year and -25.80% for next year.
Float and Shares Shorts:
At present, 75.59 million DQ shares are outstanding with a float of 68.16 million shares on hand for trading. On Oct 13, 2022, short shares totaled 2.94 million, which was 3.92% higher than short shares on Sep 14, 2022. In addition to Mr. Guangfu Xu as the firm’s Founder & Chairman, Mr. Longgen Zhang serves as its CEO & Director.
Through their ownership of 58.47% of DQ’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 34.00% of DQ, in contrast to 24.90% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in DQ with 4.38% of the stake, BlackRock Fund Advisors holds 3,286,017 shares worth 3,286,017. A second-largest stockholder of DQ, Templeton Asset Management Ltd., holds 2,857,489 shares, controlling over 3.81% of the firm’s shares. HHLR Advisors Ltd. is the third largest shareholder in DQ, holding 2,101,315 shares or 2.80% stake. With a 2.27% stake in DQ, the Invesco Solar ETF is the largest stakeholder. A total of 1,700,104 shares are owned by the mutual fund manager. The Templeton Emerging Markets Invest, which owns about 1.73% of DQ stock, is the second-largest Mutual Fund holder. It holds 1,293,400 shares valued at 49.94 million. Vanguard Emerging Markets Stock I holds 1.03% of the stake in DQ, owning 771,217 shares worth 29.78 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DQ since 12 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DQ analysts setting a high price target of $102.00 and a low target of $42.40, the average target price over the next 12 months is $62.86. Based on these targets, DQ could surge 123.34% to reach the target high and fall by -7.16% to reach the target low. Reaching the average price target will result in a growth of 37.64% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DQ will report FY 2022 earnings on 02/26/2024. Analysts have provided yearly estimates in a range of $31.20 being high and $25.48 being low. For DQ, this leads to a yearly average estimate of $27.16. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Daqo New Energy Corp. surprised analysts by -$2.90 when it reported $4.18 EPS against a consensus estimate of $7.08. The surprise factor in the prior quarter was -$0.21. Based on analyst estimates, the high estimate for the next quarter is $7.80 and the low estimate is $7.02. The average estimate for the next quarter is thus $7.41.