Daiwa Capital Downgrades Daqo New Energy to Hold Rating

Following a recent report, Daiwa Capital has downgraded the outlook for Daqo New Energy from Outperform to Hold. This shift in sentiment, alongside declines in institutional share ownership, could spell challenges for the company's stock performance moving forward.

Date: 14-10-2024

AI Rating: 4

The analysis indicates a significant downgrade in the outlook for Daqo New Energy as reported by Daiwa Capital. This change from an 'Outperform' to a 'Hold' rating suggests a more cautious view of the stock's potential for growth, impacting investor sentiment negatively.

Furthermore, there is noteworthy information regarding institutional ownership. The report cites a decrease of 54 funds or institutions holding positions in Daqo, which represents a decline of 20.53% in the last quarter. Such a reduction in ownership can often signal a lack of confidence among large investors concerning the company's future prospects.

Average portfolio weight for Daqo stands at 0.31%, which has increased slightly by 4.85%. However, the total shares owned by institutions have dropped by 10.70% to 29,329,000 shares in the last three months. This decline highlights a significant shift in institutional interest and could lead to lower stock prices as demand wanes.

Looking further into individual institutional behavior, some firms such as Continental General Insurance have increased their holdings, showing a rise of 7.79% with a decrease in portfolio allocation of 15.59%. In contrast, firms like FIL and Franklin Resources have substantially reduced their stakes, with FIL decreasing its portfolio allocation by 71.12%. Such variations indicate differing strategies among investors and a general trend toward reduced commitment to Daqo, which can contribute to downward pressure on stock prices.

Stocks: DQ