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e.l.f. Beauty’s 2024 Share Buyback Program: Risks and Challenges Amid Unused Funds and Tax Implications

e.l.f. Beauty’s 2024 Share Buyback Program: Risks and Challenges Amid Unused Funds and Tax Implications

e.l.f. Beauty, Inc. (ELF) has disclosed a new risk, in the Share Price & Shareholder Rights category.

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e.l.f. Beauty, Inc. faces a significant risk with its 2024 Share Repurchase Program, as there is no assurance that the program will be fully utilized or that it will enhance long-term stockholder value. Despite authorizing up to $500 million for repurchases, only $50 million has been used as of March 31, 2025, leaving $450 million available. The program’s flexibility allows for modifications or termination without notice, and the added 1% excise tax from the Inflation Reduction Act of 2022 further complicates the cost-effectiveness of such repurchases. Additionally, these actions may not positively impact share prices or could lead to increased volatility and reduced cash reserves, potentially necessitating external financing for operations.

The average ELF stock price target is $109.64, implying -1.97% downside potential.

To learn more about e.l.f. Beauty, Inc.’s risk factors, click here.

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