There is no way Daqo New Energy Corp. (DQ) can keep these numbers up

Daqo New Energy Corp. (NYSE: DQ) stock fell -1.41% on Wednesday to $39.18 against a previous-day closing price of $39.74. With 0.6 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.18 million shares. During the session, the Solar company that operates in wider Technology sector, reached to the highest price of $40.14 whereas the lowest price it dropped to was $38.80. The 52-week range on DQ shows that it touched its highest point at $77.18 and its lowest point at $36.91 during that stretch. It currently has a 1-year price target of $59.09. Beta for the stock currently stands at 0.53.

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 -4.88%, but this was down by -7.72% over a month. Three-month performance dropped to -15.60% while six-month performance fell -25.01%. The stock lost -15.65% in the past year, while it has gained 1.48% so far this year. A look at the trailing 12-month EPS for DQ yields 20.04 with Next year EPS estimates of 10.28. For the next quarter, that number is 5.54. This implies an EPS growth rate of 141.30% for this year and -34.80% for next year.

Float and Shares Shorts:

At present, 78.30 million DQ shares are outstanding with a float of 67.22 million shares on hand for trading. On Apr 27, 2023, short shares totaled 3.56 million, which was 4.61% higher than short shares on Mar 30, 2023. In addition to Mr. Guangfu Xu as the firm’s Founder & Chairman, Mr. Longgen Zhang serves as its CEO & Director.

Institutional Ownership:

Through their ownership of 59.11% of DQ’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 38.19% of DQ, in contrast to 23.08% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in DQ with 3.33% of the stake, Morgan Stanley & Co. LLC holds 2,499,750 shares worth 2,499,750. A second-largest stockholder of DQ, Templeton Asset Management Ltd., holds 2,300,202 shares, controlling over 3.07% of the firm’s shares. FIL Investment Advisors is the third largest shareholder in DQ, holding 2,261,876 shares or 3.02% stake. With a 1.88% stake in DQ, the Invesco Solar ETF is the largest stakeholder. A total of 1,407,297 shares are owned by the mutual fund manager. The Templeton Emerging Markets Invest, which owns about 1.44% of DQ stock, is the second-largest Mutual Fund holder. It holds 1,075,768 shares valued at 49.4 million. Vanguard Emerging Markets Stock I holds 1.06% of the stake in DQ, owning 790,745 shares worth 36.31 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, DQ reported revenue of $1.24B and operating income of $927.58M. The EBITDA in the recently reported quarter was $927.58M and diluted EPS was $8.18.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DQ since 0 analysts follow the stock currently. 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 $87.00 and a low target of $26.42, the average target price over the next 12 months is $57.08. Based on these targets, DQ could surge 122.05% to reach the target high and fall by -32.57% to reach the target low. Reaching the average price target will result in a growth of 45.69% 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.