Envela Corp expands stock buyback program

Today, Envela Corporation (NYSE American:ELA), a retail jewelry company with a strong financial health rating according to InvestingPro, announced an increase in its stock repurchase program. The company, which has seen a notable 9.19% return over the past week and maintains a healthy current ratio of 4.76, has authorized the buyback of an additional 100,000 shares of common stock. This action raises the total number of shares that may be repurchased under the current program to 1,100,000.

The repurchase plan, which will be overseen by the company’s Chief Executive Officer or Chief Financial Officer, allows for stock to be bought back using various methods. These methods include open-market purchases, 10b5-1 plans, private transactions, or other means as deemed appropriate by the authorized officers. The prices and terms of the repurchases will be determined by the CEO or CFO, adhering to federal and state securities laws, SEC regulations, and Nevada law. With the stock trading between its 52-week range of $4.20 to $7.88, InvestingPro analysis reveals several additional insights about the company’s valuation and growth prospects.

This expanded repurchase program is set to continue until March 31, 2026. Under the program, shares that are repurchased may be retired at the discretion of the authorized officers, which would result in a reduction of the company’s capital accounts.

The company’s decision to buy back additional shares of its stock reflects a possible effort to manage its capital structure and deliver value to its shareholders. The repurchase program’s extension indicates the company’s ongoing commitment to utilizing its resources in a way that it believes will benefit its stakeholders.

The announcement is based on a press release statement and was filed with the United States Securities and Exchange Commission today, confirming the details of the expanded repurchase program. While Envela Corp’s management has not disclosed specific reasons for the repurchase, InvestingPro data shows the company operates with a moderate debt-to-equity ratio of 0.36 and has demonstrated profitability over the last twelve months with an EBITDA of $9.32 million. These metrics, along with six additional exclusive ProTips available to subscribers, provide deeper insight into the company’s financial strategy and market position.

In other recent news, Envela Corp disclosed that Allison DeStefano has resigned from its Board of Directors as of March 10, 2025. DeStefano, who will continue to lead the company’s Consumer Division, stepped down without any disagreements with the company’s operations, policies, or practices. The resignation appears amicable, with no underlying issues noted that would concern investors. The announcement was made through a Form 8-K filed with the Securities and Exchange Commission, which did not elaborate on the reasons for her resignation or mention any potential board replacements. Envela Corp has not indicated any changes to its strategic direction or governance following this development. Investors may be watching how the company adjusts to this change in its board’s makeup. As of now, Envela Corp has not provided further details regarding the transition or any future appointments to its board.

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