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Daqo New Energy (DQ) Unveils $100M Share Repurchase Program

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Daqo New Energy Corp. (DQ - Free Report) , a leading producer of high-purity polysilicon for the global solar PV industry, recently announced the approval of a $100-million share repurchase program by its board of directors. This program will be effective through Jun 30, 2025.

Under this authorization, Daqo New Energy can repurchase up to $100 million of its outstanding ordinary or American depositary shares (ADSs) through open-market purchases, negotiated off-market transactions, block trades or other legally permissible methods under U.S. securities laws.

 

The repurchase program is expected to be funded primarily from DQ’s available cash and existing cash balance. It does not obligate Daqo New Energy to acquire any specific number of shares or ADSs at any particular time. The board will periodically review the program and may adjust its terms and size as necessary.

Daqo New Energy expressed that the share repurchase program showcases its confidence in its business development as it navigates the industry downcycle. DQ is fully committed to delivering sustainable growth and creating shareholder value. However, the timing, number of shares repurchased, and prices paid will be influenced by the company's operations, market conditions and regulatory requirements, including any blackout period restrictions.

Shares of Daqo have lost 53.1% in the past year against a 13.9% fall in the industry.

Zacks Investment Research
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Zacks Rank & Other Key Picks

Daqo currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Kinross Gold Corporation (KGC - Free Report) . Carpenter Technology, Eldorado Gold and Kinross sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $4.44, indicating a year-over-year rise of 289.5%. CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 15.1%. The company’s shares have soared 119.6% in the past year.

The Zacks Consensus Estimate for EGO’s current-year earnings is pegged at $1.21, indicating a year-over-year rise of 112.3%. EGO’s earnings estimates have increased 11% in the past 60 days. EGO beat the consensus estimate in the last four quarters, with the average earnings surprise being 430.7%. The stock has rallied 50.2% in the past year.

The Zacks Consensus Estimate for Kinross's current-year earnings is pegged at 57 cents, indicating a rise of 29.6% from the year-ago levels. KGC beat the consensus in the last four quarters, with the average earnings surprise being 46%. The stock has surged nearly 80.2% in the past year.

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