Sensata Technologies Announces New $500 Million Share Repurchase Authorization

Rhea-AI Summary

Sensata Technologies (NYSE: ST) has authorized a new share repurchase program worth $500 million, replacing the previous program which had $254 million remaining as of December 31, 2021. This initiative reflects the company’s confidence in its financial outlook and ability to generate strong free cash flow. CEO Jeff Cote emphasized the program's role in enhancing shareholder value while pursuing mergers and acquisitions to bolster growth. The repurchase may take place under various market conditions and could be suspended at any time.

Positive

• New share repurchase program of $500 million enhances shareholder value.
• Demonstrates confidence in financial outlook and ability to generate strong free cash flow.
• Supports ongoing M&A strategy to drive long-term growth.

Negative

• None.

SWINDON, England--(BUSINESS WIRE)-- Sensata Technologies (NYSE: ST) today announced that its Board of Directors has authorized a new ordinary share repurchase program of $500 million. This plan replaces Sensata’s prior ordinary share repurchase program which had $254 million remaining authorization as of December 31, 2021. Sensata’s shareholders have previously approved the forms of share repurchase agreements and the potential broker counterparties needed to execute the buyback program.

“Our share repurchase plan demonstrates our belief in our financial outlook and our ability to generate strong free cash flow, which we can deploy into value-creating initiatives for our shareholders,” said Jeff Cote, CEO and President. “We will continue to pursue M&A to expand our Megatrend growth initiatives. The new repurchase program will augment our existing capital deployment strategies and enable us to drive attractive returns on invested capital over the long-term.”

The Company’s ordinary shares may be repurchased from time to time depending on market conditions or other factors through open market or privately negotiated transactions. In addition, repurchases of ordinary shares may be made under a Rule 10b5-1 plan, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time.

About Sensata Technologies

Sensata Technologies is a leading industrial technology company that develops sensors, sensor-based solutions, including controllers and software, and other mission-critical products to create valuable business insights for customers and end users. For more than 100 years, Sensata has provided a wide range of customized, sensor-rich solutions that address complex engineering requirements to help customers solve difficult challenges in the automotive, heavy vehicle & off-road, industrial and aerospace industries. With more than 19,000 employees and operations in 13 countries, Sensata’s solutions help to make products safer, cleaner and more efficient, more electrified, and more connected. Learn more at www.sensata.com and follow us on LinkedIn, Facebook and Twitter.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220120006079/en/

Investor Contact:

Jacob Sayer

+1 (508) 236-1666

jsayer@sensata.com

Media Contact:

Alexia Taxiarchos

+1 (508) 236-1761

ataxiarchos@sensata.com

Source: Sensata Technologies

FAQ

What is the amount of the new share repurchase program for Sensata Technologies (ST)?

Sensata Technologies has authorized a new share repurchase program of $500 million.

What was the remaining authorization of the previous share repurchase program for Sensata Technologies (ST)?

The previous program had $254 million remaining authorization as of December 31, 2021.

What is the purpose of Sensata Technologies' (ST) share repurchase program?

The share repurchase program aims to enhance shareholder value and demonstrates the company's confidence in its financial health.

Can Sensata Technologies (ST) suspend its share repurchase program?

Yes, the repurchase program may be suspended or discontinued at any time based on market conditions.

How does the share repurchase program impact Sensata Technologies' (ST) stock price?

The share repurchase program is expected to create upward pressure on the stock price by reducing the total number of shares outstanding.