Upon the announcement of a strategic equity maneuver, shares of Oddity Tech Ltd. (NASDAQ: ODD) exhibited a significant bullish trend in the previous trading session, surging by 20.54% to close at $44.31.
Share Buyback Program
Oddity Tech (ODD) announced that the buyback of up to $150 million of the company’s Class A Ordinary Shares from the open market is now possible thanks to a share repurchase program approved by the board of directors. The provisions of the Plan, legal and regulatory restrictions, market conditions, and other strategic goals all affect this buyback plan.
The program’s expiration date is June 30, 2027, or when all allotted monies have been used, however the Board may make changes in the future. With no debt and more than $250 million in cash and cash equivalents on hand, Oddity Tech has plenty of cash on hand as well as investments and an undrawn credit line that may provide an extra $100 million.
Refined Financial Outlook
With the adoption of the Buyback Plan, Oddity Tech has modified its Q2 2024 projection. The firm expects to generate sales at the top end of the range, and it expects EBITDA and EPS to exceed the estimates in its most recent guidance, which was released on May 7, 2024.
Rebuttal Of Short Seller Allegations
Furthermore, Oddity Tech has recently refuted the allegations presented in a short seller report by NINGI Research, asserting that the claims are based on factual inaccuracies, incorrect assumptions, and unfounded speculation. The company emphasized that the report was published without its involvement.
The primary assertion in the report, which claimed that the Israeli brick-and-mortar business constitutes a significant portion of Oddity Tech’s revenue and EBITDA, was categorically denied.
Although Oddity Tech’s parent company is an Israeli entity, its operations in Israel, comprising 43 retail stores and 6 beauty schools, represent an immaterial part of its business, contributing less than 5% of the company’s net revenue and EBITDA for both FY2023 and Q1 2024.
