If the plan allows one to sell ESPP stock immediately after it is purchased, and if the investor sells immediately each time, then the stock performance is irrelevant since the investor simply captures the discount risk free.Hi everyone,
My company offers an Employee Stock Purchase Plan (ESPP) with a 15% discount and 12-month offering periods. However, the company's stock performance has been less than stellar, with a 33% decline this year alone, and the overall trend has been consistently downward.
Given the current situation, I’m wondering if it’s still worth enrolling in the ESPP, or if I should reconsider and opt out for now. I'd really appreciate any insights or advice from those of you with experience in similar situations.
Thanks in advance!
Personally I've always maxed every ESPP plan, at minimum it was a risk free 18% return (15% discount) every year. The last few years I've been at a company that has a special ESPP feature called a "look back period", which in my case was huge...I had a risk free 150% return one year because the stock dropped and then went up a lot within the look back window.
It's important to read the nuances of your plan and understand the details but the plans I've been part of, if one couldn't max out the plan every year it probably even would have been worth it to borrow money so one could afford to do that
Statistics: Posted by hoofaman — Wed Sep 25, 2024 6:27 pm — Replies 7 — Views 365