As of Wednesday close, Daqo New Energy Corp.’s (NYSE:DQ) stock was down -$0.14, moving down -0.40 percent to $35.30. The average number of shares traded per day over the past five days has been 1,112,680 shares. 1 time new highs have been achieved over the past 5 days, with a -$3.04 fall in that time frame. In the last twenty days, the average volume was 1,078,325, while in the previous 50 days, it was 947,934.
Since last month, DQ stock retreated -7.74%. Shares of the company fell to $33.40 on 08/03/23, the lowest level in the past month. A 52-week high of $73.36 was reached on 03/06/23 after having rallying from a 52-week low of $33.40. Since the beginning of this year, DQ’s stock price has dropped by -8.57% or -$3.31, and marked a new high 9 times. However, the stock has declined by -51.88% since its 52-week high.
Valuation Metrics
Right now, Daqo New Energy Corp. (DQ) has a P/E ratio of about 2.67. The stock’s beta is 0.55. Besides these, the trailing price-to-sales (P/S) ratio of 0.87, the price-to-book (PB) ratio of 0.56, and the price-to-cash flow ratio of 2.22 may also be considered.
Financial Health
In the three months ended June 29, Daqo New Energy Corp.’s quick ratio stood at 5.80, while its current ratio was 6.00, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 70.30% percent. In the year ended June 29, EBITDA margin amounted to 68.37%, whereas operating margins totaled 58.10%. Based on annual data, DQ earned $3.41 billion in gross profit and brought in $4.61 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 51.00%. Return on equity (ROE) for the past 12 months was 21.80%.
According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. DQ’s revenue rose 63.57% during the quarter, while net income inched up to $4.61 billion. While analysts expected Daqo New Energy Corp. to report $4.67 quarterly earnings, the actual figure was $1.6 per share, beating the consensus estimate by -65.70%. During the quarter, the company generated $213.87 million in EBITDA. The liabilities of Daqo New Energy Corp. were 873.81 million at the end of its most recent quarter ended June 29.
Technical Picture
This quick technical analysis looks at Daqo New Energy Corp.’s (DQ) price momentum. With a historical volatility rate of 56.97%, the RSI 9-day stood at 40.45% on 16 August.
With respect to its five-day moving average, the current Daqo New Energy Corp. price is down by -7.93% percent or -$3.04. At present, DQ shares trade -8.05% below its 20-day simple moving average and -27.99% percent below its 100-day simple moving average. However, the stock is currently trading approximately -6.76% below its SMA50 and -27.04% below its SMA200.
Stochastic coefficient K was 31.75% and Stochastic coefficient D was 34.95%, while ATR was 1.73. Given the Stochastic reading of 28.23% for the 14-day period, the RSI (14) reading has been calculated as 41.93%. As of today, the MACD Oscillator reading stands at -0.95, while the 14-day reading stands at -1.19.
Analyst Ratings
Nomura upgraded its rating on Daqo New Energy Corp. (NYSE: DQ) to a Buy in a note to investors on August 04, 2023. The analysts firm previously had a Neutral rating on the stock.Daqo New Energy Corp. (DQ) has been rated Hold by analysts. According to 1 brokerage firm, DQ is a sell, and 5 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Daqo New Energy Corp. stock as buy, with 3 recommending it as overweight.
With a median target price of $42.50, the current consensus forecast for the stock is $19.66 – $67.70. Based on these forecasts, analysts predict Daqo New Energy Corp. (DQ) will achieve an average price target of $42.18.
