Why Daqo New Energy Stock Is Seeing Blue Skies

Daqo New Energy Corp DQ shares are trading higher by 11.3% to $51.32 during Monday's trading session after the company announced a $700 million buyback program.

The company also announced that its subsidiaries Xinjiang Daqo and Inner Mongolia Daqo had signed a five-year high-purity polysilicon supply agreement with a company in China.

Daqo New Energy says the company expects to fund the repurchase primarily out of its potentially available cash, as well as its existing cash balance. The repurchase program does not obligate Daqo New Energy to acquire any particular number of ordinary shares or ADSs at any specific time.

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The board of directors for Daqo New Energy will review the share repurchase program periodically and may authorize adjustment of its terms and size accordingly.

Also, under the supply agreement, Xinjiang Daqo and Inner Mongolia Daqo will provide this leading manufacturing company with a total amount of 137,000 MT high-purity mono-grade polysilicon from November 2022 to December 2027.

Daqo New Energy says actual prices will be negotiated by both parties monthly according to market conditions.

According to data from Benzinga Pro, DQ has a 52-week high of $77.18 and a 52-week low of $32.20.