Daqo New Energy launches $100M share repurchase program through 2026

Daqo New Energy has announced a $100 million share repurchase program, which will run from Tuesday through December 31, 2026. The company plans to fund the repurchase primarily from its existing cash balance. Daqo New Energy's shares fell 12.13% premarket to $21.0.

Daqo New Energy Corp. (NYSE: DQ), a leading manufacturer of high-purity polysilicon for the solar photovoltaic industry, has announced a $100 million share repurchase program. The program, effective immediately, will run through December 31, 2026. Daqo plans to repurchase its own issued and outstanding ordinary shares or American depositary shares through various means, including open-market purchases, negotiated transactions, block trades, or other legally permissible methods.

The company, currently valued at $1.54 billion, maintains a strong balance sheet with more cash than debt and a healthy current ratio of 5.62 [1]. The stock, trading at just 0.37 times book value, has shown strong momentum with a 22.94% gain year-to-date. Daqo will fund the repurchases primarily from its existing cash balance. The program does not obligate the company to acquire any specific number of shares at any particular time, and the board will review the program periodically with potential adjustments to its terms and size.

"The share repurchase program reflects our confidence in the Company’s business prospects as we navigate the current industry downcycle," said Xiang Xu, Chairman and Chief Executive Officer of Daqo New Energy [1]. The company stated that the timing, quantity, and price of any repurchases will depend on operational performance, market conditions, and compliance with corporate governance and regulatory requirements, including applicable blackout periods.

In other recent news, Daqo New Energy Corp. reported its second-quarter revenue, which significantly missed analyst expectations. The solar industry is currently facing challenges such as overcapacity and pricing pressures, which have impacted the company’s financial performance. Despite these hurdles, Daqo New Energy remains a key player in the polysilicon manufacturing sector [2].

Daqo's shares fell 12.13% premarket to $21.0, following the announcement of the share repurchase program.

References:
[1] https://www.ainvest.com/news/daqo-energy-announces-100-million-share-repurchase-program-2508/
[2] https://seekingalpha.com/news/4489136-daqo-new-energy-announces-100m-share-repurchase-program