e.l.f. Beauty, Inc. (ELF) has disclosed a new risk, in the Share Price & Shareholder Rights category.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
e.l.f. Beauty, Inc. faces potential risks associated with its 2024 Share Repurchase Program, which allows for the repurchase of up to $500 million in shares but does not guarantee the full utilization of this amount. The program’s success hinges on market conditions and other factors, and even if fully implemented, it may not enhance long-term stockholder value. Furthermore, the Inflation Reduction Act of 2022 imposes a 1% excise tax on share repurchases, increasing costs and potentially impacting share prices and cash reserves. This financial strategy, while flexible, could inadvertently lead to increased stock volatility or necessitate additional financing to maintain operations.
Overall, Wall Street has a Moderate Buy consensus rating on ELF stock based on 10 Buys and 5 Holds.
To learn more about e.l.f. Beauty, Inc.’s risk factors, click here.
