Davies admitted to the school that he violated the school's ban on premarital sex on Monday, sources close to the team told the Salt Lake Tribune.
The Cougars, ranked third in the nation, were stunned by the news of the 6-foot-9 forward's dismissal.
"It was a surprise to everyone," coach Dave Rose said. Asked if thought Davies would play again, the coach said, "Yeah, I do."
One of the sources told the paper Davies was "extremely remorseful, heartbroken."
The school announced on Wednesday that Davies was suspended, only saying his violation was not anything criminal.
"Everybody who comes to BYU, every student if they're an athlete or not an athlete, they make a commitment when they come," Rose said. "A lot of people try to judge if this is right or wrong, but it's a commitment they make. It's not about right or wrong. It's about commitment."
BYU's honor code bans students from drinking alcohol and coffee. Students are also expected to be honest and regularly attend church services.
The team's best player, Jimmer Fredette said recounted Davies' apology.
"He told us everything. He told us he was sorry and that he let us down," Fredette said.
Following BYU's crushing 82-64 loss to New Mexico, Fredette tried to remain positive.
"(Davies) was like a brother to us, family. It's tough to lose a guy like that and pull together. I think we'll be all right."