DAQO New Energy Corp. (NYSE:DQ – Get Free Report) fell 4.2% during mid-day trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $10.50 and last traded at $10.5270. Approximately 44,850 shares were traded during trading, a decline of 94% from the average session volume of 807,795 shares. The stock had previously closed at $10.99.
The semiconductor company reported ($0.78) EPS for the quarter, missing the consensus estimate of ($0.48) by ($0.30). The company had revenue of $194.15 million during the quarter, compared to analyst estimates of $61.90 million. During the same quarter last year, the firm posted ($0.22) EPS.
DAQO New Energy News Roundup
Here are the key news stories impacting DAQO New Energy this week:
- Positive Sentiment: Q3 revenue increased to $194.2 million from $62.7 million in Q2, while polysilicon sales volume more than tripled to 46,910 metric tons. The company also reduced its net loss to $52.9 million from $81.2 million, and EBITDA losses narrowed to $9.2 million from $29.3 million. Daqo New Energy Announces Unaudited Third Quarter 2026 Financial Results
- Positive Sentiment: Manufacturing efficiency improved: average total production cost declined to $5.37 per kilogram from $5.95, and cash cost fell to $4.23 per kilogram from $4.57. The company ended the quarter with approximately $2.06 billion in cash, investments and related liquid assets, up from $1.92 billion in Q2. Daqo New Energy Reports Q3 2026 Revenue Tripling to $194.2M with Improved Margins
- Neutral Sentiment: The results suggest the polysilicon downturn may be approaching a bottom, with analysts describing the sector as showing signs of stabilization. However, the recovery remains uncertain and depends on a sustained improvement in pricing and industry supply-demand conditions. Daqo narrows losses in Q3 as polysilicon sector bottoms out
- Negative Sentiment: DQ reported a loss of $0.78 per ADS, wider than the $0.48 consensus estimate and compared with a $0.22 loss a year earlier. Although revenue rebounded sequentially, it remained below the $244.6 million reported in Q3 2025. Daqo Q3 2026 Earnings Call Transcript
- Negative Sentiment: Polysilicon pricing remains uneconomic: the $4.12-per-kilogram average selling price was below the $5.37 total production cost. DQ consequently posted a $60.6 million gross loss and a negative 31.2% gross margin, indicating that oversupply continues to weigh on earnings.
Analyst Upgrades and Downgrades
Several brokerages recently issued reports on DQ. Zacks Research upgraded shares of DAQO New Energy from a “strong sell” rating to a “hold” rating in a research report on Tuesday, September 29th. The Goldman Sachs Group downgraded shares of DAQO New Energy from a “neutral” rating to a “sell” rating and set a $10.00 target price on the stock. in a research note on Monday, August 24th. New Street Research set a $10.00 price objective on DAQO New Energy in a report on Monday, August 24th. Weiss Ratings downgraded shares of DAQO New Energy from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Monday, October 19th. Finally, JPMorgan Chase & Co. decreased their price target on shares of DAQO New Energy from $35.50 to $22.00 and set an “overweight” rating for the company in a research note on Friday, July 31st. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, DAQO New Energy presently has a consensus rating of “Reduce” and an average target price of $15.83.
View Our Latest Analysis on DAQO New Energy
Institutional Investors Weigh In On DAQO New Energy
Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Renaissance Technologies LLC purchased a new stake in DAQO New Energy during the first quarter valued at approximately $3,285,000. Cygnus Capital Advisors LLC purchased a new position in shares of DAQO New Energy in the second quarter worth $724,000. SG Americas Securities LLC boosted its holdings in shares of DAQO New Energy by 58.1% during the 1st quarter. SG Americas Securities LLC now owns 67,643 shares of the semiconductor company’s stock valued at $1,439,000 after purchasing an additional 24,855 shares during the last quarter. Himension Capital Singapore PTE. LTD. purchased a new position in DAQO New Energy during the 1st quarter valued at approximately $521,000. Finally, Hsbc Holdings PLC purchased a new position in shares of DAQO New Energy in the fourth quarter valued at $624,000. Hedge funds and other institutional investors own 47.22% of the company’s stock.
DAQO New Energy Trading Down 4.0%
The stock has a market capitalization of $713.88 million, a PE ratio of -3.70 and a beta of 0.67. The firm’s 50-day moving average price is $11.83 and its 200-day moving average price is $17.33.
About DAQO New Energy
Daqo New Energy Corp. (NYSE: DQ) is a China-based manufacturer of high-purity polysilicon, a key raw material used to produce solar photovoltaic wafers, cells and modules. Through its operating subsidiaries, the company produces polysilicon in grades used primarily for monocrystalline and multicrystalline solar applications.
The company’s production operations are located in China, including facilities in Xinjiang. Its products are supplied to manufacturers in the solar photovoltaic industry, primarily within China’s extensive solar manufacturing supply chain, with the company serving customers in other markets through industry sales and distribution relationships.
Daqo New Energy was founded in 2007 and completed its initial public offering on the New York Stock Exchange in 2010.
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