Daqo (DQ) Issues Update on $700M Share Repurchase Program
Daqo New Energy Corp. DQ issued an update on its $700 million share repurchase program, which was authorized in 2022 and ran from Nov 7, 2022, to Dec 31, 2023.
As of the conclusion of 2023, the company repurchased 14.55 million American Depositary Shares (ADSs) — equivalent to 72.75 million ordinary shares — at an average price of $33.71 per ADS, totaling around $491 million. This accounts for nearly 70.1% of the maximum amount allocated for the share repurchase initiative. The total ordinary shares outstanding for the company by the end of 2023 were around 328.8 million, down from the 391 million reported at the close of 2022 due to completed share repurchases.
Accentuating that the repurchased ADSs comprised 18.6% of the total shares outstanding at the conclusion of 2022, the company reiterated its unwavering confidence in the undervaluation of its shares. This assurance was grounded in the company's solid balance sheet and liquidity position. Despite industry challenges, the company maintained a positive outlook on long-term growth. In the fourth quarter of 2023, the company executed the repurchase of 6.45 million ADSs at an average cost of $25.11 per ADS, amounting to approximately $162 million.
DAQO New Energy Corp. Price and Consensus
DAQO New Energy Corp. price-consensus-chart | DAQO New Energy Corp. Quote
In response to recent industry developments and challenges, Daqo New Energy is strategically prioritizing capital preservation for future growth. The management team and board of directors are actively monitoring market and industry trends to navigate industry cycles and ensure sustained, long-term returns for shareholders.
Shares of Daqo have lost 48.9% in the past year against a 17.3% rise of the industry.
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Zacks Rank & Other Key Picks
Daqo currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the Basic Materials space are Cameco Corporation CCJ and Carpenter Technology Corporation CRS, both sporting a Zacks Rank #1 and Cabot Corporation CBT, currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cameco has a projected earnings growth rate of 156% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 6.7% in the past 60 days. The stock is up around 82.1% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.96, indicating a year-over-year surge of 247.4%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 53.3% in the past year.
The Zacks Consensus Estimate for CBT’s current-year earnings has been revised upward by 4.4% in the past 60 days. CBT beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 2.3%, on average. The stock has gained around 4.6% in a year.
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