Weekly Report (March 1-7, 2024) on the First Tranche of Stellantis 2024 Share Buyback Program
- None.
- None.
Insights
Stellantis N.V.'s recent share buyback announcement is a financial maneuver that can have several implications on the company's stock valuation and investor sentiment. Share buybacks are often viewed positively by the market as they can indicate a management's confidence in the company's future prospects and a belief that the stock is undervalued. By reducing the number of shares outstanding, buybacks can increase earnings per share (EPS), a key metric for valuing a company's stock.
However, the effectiveness of such programs depends on the purchase price relative to intrinsic value and the company's alternative investment opportunities. In the case of Stellantis, the buyback is substantial, allocating up to €1 billion for the repurchase of shares. This action suggests that the company prioritizes returning value to shareholders over other potential uses of capital, such as investment in new projects or paying down debt.
Investors should monitor the average purchase price and compare it to the company's historical valuations to assess the buyback's success. The repurchase at an average price of €24.7277 per share may be seen as a strategic move if the management believes that the shares are trading below their intrinsic value. The disclosed transactions also provide transparency, allowing investors to scrutinize the execution of the buyback program.
The automotive industry, where Stellantis operates, is currently undergoing significant transformation with the rise of electric vehicles (EVs) and autonomous driving technology. In this context, share buyback programs can signal to the market that the company is financially robust and expects to navigate the industry's changes successfully. However, it is important to consider the opportunity cost of such buybacks, especially in an industry that requires heavy investment in research and development (R&D) to remain competitive.
Stellantis' decision to allocate a considerable sum for share repurchases could be interpreted in different ways. On one hand, it could reassure investors about the company's liquidity and balance sheet strength. On the other hand, stakeholders might question if this capital could have been better spent on technological advancements or strategic acquisitions to secure a competitive edge in the evolving market.
The timing of the buyback program is also crucial; if executed during a market dip, the company could benefit from purchasing its own shares at a lower price, potentially yielding better returns for shareholders when the market recovers.
From an economic perspective, share buyback programs can be influenced by macroeconomic conditions such as interest rates, inflation and overall market sentiment. In a low-interest-rate environment, companies may prefer to return capital to shareholders through buybacks rather than holding excess cash or making low-yield investments. Conversely, high-interest rates could make debt servicing more expensive, which would require careful consideration of capital allocation decisions.
Stellantis' buyback program coincides with a period marked by economic recovery from the pandemic and potential shifts in monetary policy. The company's actions could be seen as a strategic deployment of capital, balancing the need to reward shareholders and maintain financial flexibility against an uncertain economic backdrop.
It is also essential to consider the broader economic implications of such buybacks, including their impact on income distribution among shareholders. While buybacks can boost stock prices, benefiting shareholders, they may also reduce the funds available for employee compensation and investment in labor, which can have broader economic consequences.
Weekly Report (March 1-7, 2024) on the First Tranche of Stellantis 2024 Share Buyback Program
AMSTERDAM, March 8, 2024 - Stellantis N.V. (“Stellantis” or the “Company”) announced today that pursuant to its First Tranche of the 2024 Share Buyback Program announced on February 28, 2024, covering up to
| Date | Number of Shares Repurchased | Average Market Purchase Price in € per share | Repurchased Volume in € (excluding fees) | Venues |
| 04-mars-24 | 95 195 | MI | ||
| 04-mars-24 | 36 661 | CEUX | ||
| 05-mars-24 | 1 495 886 | MI | ||
| 06-mars-24 | 2 102 183 | MI | ||
| Total | 3 729 925 |
Since February 28, 2024 up to and including March 7, 2024, the Company has purchased a total of 7,204,239 common shares for a total consideration of
As of March 7, 2024, the Company held in treasury No. 149,294,536 common shares equal to
A comprehensive overview of the transactions carried out under the buyback program, as well as the details of the above transactions, are available on Stellantis’ corporate website under the Share Buyback Program Section www.stellantis.com/en/investors/stock-and-shareholder-info/share-buyback-program.
###
About Stellantis
Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world’s leading automakers aiming to provide clean, safe and affordable freedom of mobility to all. It’s best known for its unique portfolio of iconic and innovative brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Stellantis is executing its Dare Forward 2030, a bold strategic plan that paves the way to achieve the ambitious target of becoming a carbon net zero mobility tech company by 2038, with single-digit percentage compensation of the remaining emissions, while creating added value for all stakeholders. For more information, visit www.stellantis.com
 | @Stellantis |  | Stellantis |  | Stellantis |  | Stellantis | |
| For more information, contact: communications@stellantis.com www.stellantis.com | ||||||||
FORWARD-LOOKING STATEMENTS
This communication contains forward-looking statements. In particular, statements regarding future events and anticipated results of operations, business strategies, the anticipated benefits of the proposed transaction, future financial and operating results, the anticipated closing date for the proposed transaction and other anticipated aspects of our operations or operating results are forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, “prospects”, “plan”, or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on Stellantis’ current state of knowledge, future expectations and projections about future events and are by their nature, subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them.
Actual results may differ materially from those expressed in forward-looking statements as a result of a variety of factors, including: the impact of the COVID-19 pandemic, the ability of Stellantis to launch new products successfully and to maintain vehicle shipment volumes; changes in the global financial markets, general economic environment and changes in demand for automotive products, which is subject to cyclicality; changes in local economic and political conditions, changes in trade policy and the imposition of global and regional tariffs or tariffs targeted to the automotive industry, the enactment of tax reforms or other changes in tax laws and regulations; Stellantis’ ability to expand certain of their brands globally; its ability to offer innovative, attractive products; its ability to develop, manufacture and sell vehicles with advanced features including enhanced electrification, connectivity and autonomous-driving characteristics; various types of claims, lawsuits, governmental investigations and other contingencies, including product liability and warranty claims and environmental claims, investigations and lawsuits; material operating expenditures in relation to compliance with environmental, health and safety regulations; the intense level of competition in the automotive industry, which may increase due to consolidation; exposure to shortfalls in the funding of Stellantis’ defined benefit pension plans; the ability to provide or arrange for access to adequate financing for dealers and retail customers and associated risks related to the establishment and operations of financial services companies; the ability to access funding to execute Stellantis’ business plans and improve its businesses, financial condition and results of operations; a significant malfunction, disruption or security breach compromising information technology systems or the electronic control systems contained in Stellantis’ vehicles; Stellantis’ ability to realize anticipated benefits from joint venture arrangements; disruptions arising from political, social and economic instability; risks associated with our relationships with employees, dealers and suppliers; increases in costs, disruptions of supply or shortages of raw materials, parts, components and systems used in Stellantis’ vehicles; developments in labor and industrial relations and developments in applicable labor laws; exchange rate fluctuations, interest rate changes, credit risk and other market risks; political and civil unrest; earthquakes or other disasters; risks and other items described in the Company’s Annual Report on Form 20-F for he year ended December 31, 2022 and Current Reports on Form 6-K and amendments thereto filed with the SEC; and other risks and uncertainties.
Any forward-looking statements contained in this communication speak only as of the date of this document and Stellantis disclaims any obligation to update or revise publicly forward-looking statements. Further information concerning Stellantis and its businesses, including factors that could materially affect Stellantis’ financial results, is included in Stellantis’ reports and filings with the U.S. Securities and Exchange Commission and AFM.
Attachment
FAQ
How many common shares did Stellantis repurchase in the period from March 1 to March 7, 2024?
What is the total consideration for the common shares repurchased by Stellantis from February 28 to March 7, 2024?
What percentage of the total issued share capital does Stellantis' treasury shares represent as of March 7, 2024?
Where can detailed information about Stellantis' Share Buyback Program transactions be found?
