Insider Selling

Daqo New Energy insiders file Form 144s in the midst of a buy rating

The image's background depicts solar panels, with the blog introduction mentioning the 2 insiders filled form 144 on top.

A form 144 is a proposed sale of shares filed by a company’s insider. This form comes in handy when an insider intends to sell stock valued more than $50,000. This year, insiders at Daqo New Energy (DQ: US) have filed Form 144s at noticeably high values.

A Chinese company listed on the NYSE, Daqo manufactures polysilicon which is developed to be used in the photovoltaic (PV) industry. The company has a current M Cap of $4.82 billion, while year-to-date, DQ’s stock price has risen by almost 54.23%. This surge could also be attributed to the rise in polysilicon production since 2021, along with other components of the PV industry. 

3 form in August

Shi Dafeng - a Director at the company - filed two form 144s in August this year. Both were for ADR (American Depository Shares) but filed via different brokers.

  • His first form was filed on August 15 through the broker UBS Financial Services. The form was for 740,000 shares worth almost $50.75 million. This form was under the private company Lucky Prosper Investment Ltd, which is owned by Shi Dafeng
  • The second and most recent one was on August 18 via The Core Securities Co LTD. This was for 469,545 shares valued at $31.33 million

Later in August, the company CEO - Zhang Longgen - filed a form as well. Marking his first trade in company shares since 2020, this planned sale is of 1.5 million DQ shares, worth $94.1 million.

Following this trend, Xiang Xu - also a director at Daqo - filed a Form 144 on August 23; the same day as CEO Zhang's filing. He plans to sell 755,000 shares for a total value of $47.36 million and the form broker was The Core Securities, the same as the CEO's broker.

Looking through the past records, Daqo's insiders have only disclosed sale intentions through Form 144s this year from Directors to the CFO as well. The forms in total are for shares worth approximately $182.6 million. 

Daqo in the News

On August 3, 2022, Daqo announced its second-quarter results which were quite satisfactory. According to the article, the production volume was 35,326 megatonnes in the quarter, almost 12.56% higher than the previous quarter’s production. In contrast, the revenues earned were lower than the previous quarter by around 2.83%., but almost 181.85% higher year-on-year. 

Prior to these results, Daqo was on the list of more than a hundred Chinese stocks that would be subjected to possible delisting from the American market this year. But since the posting of these results, a lot has changed. At present, Daqo stock received a buy rating by most analysts and a hold rating by a few others. 

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