Why Polysilicon Company Daqo New Energy's Shares Are Trading Higher Premarket Today

Daqo New Energy Corp. DQ shares are trading higher after the company approved a $100 million share repurchase program, effective until June 30, 2025.

Daqo New Energy’s board has authorized the repurchase of up to $100 million of its shares or ADSs through various legal means, in compliance with U.S. securities laws.

The repurchase program will be funded mainly from the company’s available and existing cash balance.

Xiang Xu, Chairman and Chief Executive Officer of the Company, said, “The share repurchase program underscores our confidence in the Company’s business development as we weather through the industry downcycle. We remain  fully committed to delivering sustainable growth while creating value for our shareholders.”

As of March-end, the company had $2.7 billion in cash and equivalents. Investors can gain exposure to the stock via Invesco Solar ETF TAN.

Is DQ A Good Stock To Buy

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Daqo New Energy‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Daqo New Energy does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 6.11%, you'll need to buy a share of DYNAMIC ACTIVE ENHANCED YIELD COVER UNITS by the Jul. 26, 2024. Once done, you can expect to receive a nominal payout of $0.12 on Jul. 31, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Daqo New Energy will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

Price Action: DQ shares are up 5.85% at $17.01 premarket at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image: Shutterstock/ bangoland