STMicroelectronics Announces Status of Common Share Repurchase Program

Rhea-AI Summary

STMicroelectronics (STM) has announced the status of its common share repurchase program for the period from August 12 to August 16, 2024. The company repurchased 365,500 ordinary shares, representing 0.04% of its issued share capital, at a weighted average purchase price of €27.1513 per share. The total cost of the buyback was €9,923,788.50. The purpose of these transactions is to meet obligations arising from share option programs or other share allocations to employees or company bodies. Following these buybacks, STMicroelectronics now holds 9,312,616 treasury shares, approximately 1.0% of its issued share capital.

Positive

• Repurchased 365,500 shares, potentially increasing shareholder value
• Share buyback program demonstrates confidence in company's financial position
• Buyback supports employee share option programs, potentially improving talent retention

Negative

• Expenditure of €9,923,788.50 on share buybacks may reduce available cash for other investments

Insights

Financial Analyst

STMicroelectronics' share repurchase program is a strategic move that could potentially benefit shareholders. The company bought back 365,500 shares (0.04% of issued share capital) at an average price of €27.1513, totaling €9,923,788.50. This action can be seen as a positive signal, indicating that the company believes its stock is undervalued.

The repurchase serves dual purposes: meeting obligations for employee share programs and potentially enhancing shareholder value. With 1.0% of issued share capital now held as treasury shares, STMicroelectronics has increased its flexibility for future corporate actions. However, investors should note that while buybacks can boost earnings per share, they don't directly improve the company's fundamental performance or cash flow generation.

Market Research Analyst

The timing and execution of STMicroelectronics' share repurchase program are noteworthy. The company acquired shares at an average price of €27.1513, which is relatively low compared to its 52-week high. This suggests management's confidence in the company's long-term prospects and potential undervaluation in the current market.

Interestingly, the daily purchase volumes remained fairly consistent throughout the week, ranging from 70,000 to 75,000 shares. This steady approach minimizes market impact and demonstrates a disciplined execution of the buyback program. The transparency in reporting these transactions, including detailed breakdowns, enhances investor trust and aligns with best practices in corporate governance.

STMicroelectronics Announces Status of
Common Share Repurchase Program

Disclosure of Transactions in Own Shares – Period from Aug 12, 2024 to Aug 16, 2024

AMSTERDAM – August 19, 2024 -- STMicroelectronics N.V. (the “Company” or “STMicroelectronics”), a global semiconductor leader serving customers across the spectrum of electronics applications, announces full details of its common share repurchase program (the “Program”) disclosed via a press release dated June 21, 2024. The Program was approved by a shareholder resolution dated May 22, 2024 and by the supervisory board.

STMicroelectronics N.V. (registered with the trade register under number 33194537) (LEI: 213800Z8NOHIKRI42W10) announces the repurchase (by a broker acting for the Company) on the regulated market of Euronext Paris, in the period between Aug 12, 2024 to Aug 16, 2024 (the “Period”), of 365,500 ordinary shares (equal to 0.04% of its issued share capital) at the weighted average purchase price per share of EUR 27.1513 and for an overall price of EUR 9,923,788.50.

The purpose of these transactions under article 5(2) of Regulation (EU) 596/2014 (the Market Abuse Regulation) was to meet obligations arising from share option programmes, or other allocations of shares, to employees or to members of the administrative, management or supervisory bodies of the issuer or of an associate company.

The shares may be held in treasury prior to being used for such purpose and, to the extent that they are not ultimately needed for such purpose, they may be used for any other lawful purpose under article 5(2) of the Market Abuse Regulation.

Below is a summary of the repurchase transactions made in the course of the Period in relation to the ordinary shares of STMicroelectronics (ISIN: NL0000226223), in detailed form.

Transactions in Period

Dates of transaction	Number of shares purchased	Weighted average purchase price per share (EUR)	Total amount paid (EUR)	Market on which the shares were bought (MIC code)
8/12/2024	75,000	26.9168	2,018,760.00	XPAR
8/13/2024	73,500	26.7306	1,964,699.10	XPAR
8/14/2024	73,000	27.1234	1,980,008.20	XPAR
8/15/2024	74,000	27.1218	2,007,013.20	XPAR
8/16/2024	70,000	27.9044	1,953,308.00	XPAR
Total for Period	365,500	27.1513	9,923,788.50

Following the share buybacks detailed above, the Company holds in total 9,312,616 treasury shares, which represents approximately 1.0% of the Company’s issued share capital.

In accordance with Article 5(1)(b) of the Market Abuse Regulation and Article 2(3) of Commission Delegated Regulation (EU) 2016/1052, a full breakdown of the individual trades in the Program are disclosed on the ST website (https://investors.st.com/stock-and-bond-information/share-buyback).

About STMicroelectronics
At ST, we are over 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloud-connected autonomous things. We are committed to achieving our goal to become carbon neutral on scope 1 and 2 and partially scope 3 by 2027. Further information can be found at www.st.com.

For further information, please contact:

INVESTOR RELATIONS:
Céline Berthier
Group VP, Investor Relations
Tel: +41.22.929.58.12
celine.berthier@st.com

MEDIA RELATIONS:
Alexis Breton        
Corporate External Communications
Tel: +33.6.59.16.79.08

alexis.breton@st.com

Attachment

• C3277C -- Aug 19 2024 -- Disclosure of transactions in Own Shares PR_FINAL FOR PUBLICATION

FAQ

How many shares did STMicroelectronics (STM) repurchase from August 12 to 16, 2024?

STMicroelectronics repurchased 365,500 ordinary shares during the period from August 12 to August 16, 2024.

What was the average purchase price per share for STM's buyback program in August 2024?

The weighted average purchase price per share for STMicroelectronics' buyback program was €27.1513.

What is the total value of STMicroelectronics' (STM) share repurchases from August 12-16, 2024?

The total value of STMicroelectronics' share repurchases for the period was €9,923,788.50.

What percentage of STM's issued share capital does the August 2024 buyback represent?

The repurchased shares represent 0.04% of STMicroelectronics' issued share capital.

How many treasury shares does STMicroelectronics (STM) hold after the August 2024 buyback?

After the buyback, STMicroelectronics holds a total of 9,312,616 treasury shares, which is approximately 1.0% of its issued share capital.