DAQQ New Energy stock hits 52-week low at $13.61 amid market challenges

Published 08/04/2025, 20:18
DAQQ New Energy stock hits 52-week low at $13.61 amid market challenges

In a challenging market environment, DAQQ New Energy Corp (NYSE:DQ)'s stock has tumbled to a 52-week low, with shares dropping to $13.61. According to InvestingPro data, the stock's RSI indicates oversold conditions, while trading at just 0.23 times book value, suggesting potential value territory. The company, known for its advancements in the clean energy sector, has faced significant headwinds over the past year, reflected in a steep 1-year change of -48.78%. While investors have shown concern, InvestingPro analysis reveals a strong current ratio of 5.05 and more cash than debt on the balance sheet. The current price level marks a critical juncture for DAQQ New Energy as it seeks to navigate through the evolving energy landscape and investor expectations. Discover 12 additional exclusive insights and comprehensive analysis available on InvestingPro.

In other recent news, Daqo New Energy Corp reported its financial results for the fourth quarter of 2024, revealing significant challenges. The company's earnings per share (EPS) came in at -2.56, missing the forecast of -0.86, while revenue exceeded expectations at $195.4 million against a forecast of $181.59 million. Despite the revenue beat, Daqo experienced a full-year revenue decline from $2.3 billion in 2023 to $1.03 billion in 2024, with a net loss of $345 million, compared to a net income of $429.5 million the previous year. The polysilicon market's overcapacity and pricing pressures were cited as major factors impacting profitability, with the company's gross margin dropping from 39.9% in 2023 to -20.7% in 2024. Daqo's management highlighted plans to produce between 110,000 and 140,000 metric tons of polysilicon in 2025, focusing on operational efficiency and cost management. Furthermore, the company foresees potential price increases for polysilicon in the second quarter of 2025. Despite these challenges, Daqo maintains a strong balance sheet with a cash balance of $1.038 billion as of December 31, 2024.

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