ePlus Announces Stock Repurchase Program

Rhea-AI Summary

ePlus inc. (NASDAQ: PLUS) announced a stock repurchase program, allowing the company to buy back up to 1,000,000 shares of its outstanding common stock over a 12-month period starting May 28, 2022. As of March 23, 2022, ePlus had approximately 26.89 million shares outstanding. Repurchases may occur in the open market or through private transactions, subject to management's discretion and market conditions. The repurchased shares will be held as treasury shares for general corporate purposes.

Positive

• Authorization to repurchase 1,000,000 shares may enhance shareholder value.
• Repurchase can potentially increase Earnings Per Share (EPS) by reducing the number of outstanding shares.

Negative

• Repurchase program may divert funds from other potential growth opportunities.
• Management has discretion over the timing and number of shares repurchased, which adds uncertainty.

HERNDON, Va., March 24, 2022 /PRNewswire/ -- ePlus inc. (NASDAQ NGS: PLUS – news) today announced that its board of directors has authorized the Company to repurchase up to 1,000,000 shares of ePlus' outstanding common stock over a 12-month period commencing May 28, 2022.  The Company's current repurchase plan will expire on May 27, 2022.  ePlus had approximately 26.89 million shares of common stock outstanding as of March 23, 2022.

The purchases may be made from time to time in the open market, or in privately negotiated transactions, subject to availability.  Any repurchased shares will have the status of treasury shares and may be used, if and when needed, for general corporate purposes.  ePlus has no obligation to repurchase shares under the authorization, and the timing, actual number and value of the shares which are repurchased will be at the discretion of management and will depend on a number of factors, including the price of the Company's common stock. The Company may suspend or discontinue repurchases at any time.

About ePlus inc.
ePlus is a leading consultative technology solutions provider that helps customers imagine, implement, and achieve more from their technology.  With the highest certifications from top technology partners and lifecycle services expertise across key areas including security, cloud, data center, collaboration, networking and emerging technologies, ePlus transforms IT from a cost center to a business enabler.  Founded in 1990, ePlus has more than 1,500 associates serving a diverse set of customers in the U.S., Europe, and Asia-Pac.  The Company is headquartered at 13595 Dulles Technology Drive, Herndon, VA, 20171.  For more information, visit www.eplus.com, call 888-482-1122, or email info@eplus.com.  Connect with ePlus on Facebook, LinkedIn, Twitter and Instagram.  ePlus, Where Technology Means More^®.

ePlus^®, Where Technology Means More^®, and ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc. in the United States and/or other countries. 

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SOURCE ePlus inc.

FAQ

What is the stock repurchase program announced by ePlus (PLUS)?

ePlus announced a stock repurchase program to buy back up to 1,000,000 shares over a 12-month period starting May 28, 2022.

When does the ePlus stock repurchase program begin?

The stock repurchase program begins on May 28, 2022.

How many shares does ePlus plan to repurchase?

ePlus plans to repurchase up to 1,000,000 shares of its common stock.

What is the effect of the repurchase program on ePlus stock (PLUS)?

The repurchase program may enhance shareholder value and increase Earnings Per Share (EPS) by reducing outstanding shares.

What are the possible risks of the stock buyback by ePlus (PLUS)?

Risks include potential diversion of funds from growth opportunities and uncertainty in management's timing and decision-making regarding repurchases.