STMicroelectronics Announces Status of Common Share Repurchase Program

Rhea-AI Summary

STMicroelectronics (STM) has reported the completion of share repurchases between January 20-24, 2025, as part of its buyback program announced on June 21, 2024, and approved by shareholders on May 22, 2024. The company repurchased 354,000 ordinary shares (0.04% of issued share capital) at a weighted average price of EUR 24.6045 per share, totaling EUR 8,710,008.40.

The buyback aims to fulfill obligations from share option programs and allocations to employees and management. Following these transactions, STM holds 14,415,412 treasury shares, representing approximately 1.6% of its issued share capital. The shares were purchased on the Euronext Paris regulated market.

Positive

• Strategic share repurchase program to support employee stock options and share allocations
• Relatively small treasury position (1.6% of issued share capital) indicating controlled buyback approach
• Strong financial position enabling EUR 8.7M share repurchase execution

Negative

• None.

Insights

Financial Analyst

This week's share repurchase activity by STMicroelectronics reveals a strategic approach to capital allocation and employee retention. The acquisition of 354,000 shares at EUR 8.71 million demonstrates measured execution of their buyback program, with daily purchases carefully distributed to minimize market impact.

The current treasury position of 14.4 million shares (1.6% of issued capital) is notably conservative compared to industry peers, who often maintain 3-5% treasury holdings. This conservative approach provides STM flexibility for future employee compensation while maintaining strong balance sheet efficiency.

The weighted average purchase price of EUR 24.60 reflects disciplined execution, with daily volume representing only about 15-20% of typical daily trading volume. This methodical approach helps prevent artificial price inflation while building the necessary share reserve for employee incentive programs.

The buyback's primary purpose - supporting employee stock programs - is particularly relevant in the current semiconductor industry landscape, where talent retention is crucial. By maintaining a steady buyback program rather than opportunistic large purchases, STM demonstrates long-term commitment to its compensation strategy while preserving capital flexibility for core operations and R&D investments.

STMicroelectronics Announces Status of
Common Share Repurchase Program

Disclosure of Transactions in Own Shares – Period from Jan 20, 2025 to Jan 24, 2025

AMSTERDAM – January 27, 2025 -- 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 Jan 20, 2025 to Jan 24, 2025 (the “Period”), of 354,000 ordinary shares (equal to 0.04% of its issued share capital) at the weighted average purchase price per share of EUR 24.6045 and for an overall price of EUR 8,710,008.40.

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)
20-Jan-25	65,000	24.6631	1,603,101.50	XPAR
21-Jan-25	60,000	24.7293	1,483,758.00	XPAR
22-Jan-25	69,000	24.6273	1,699,283.70	XPAR
23-Jan-25	76,000	24.5177	1,863,345.20	XPAR
24-Jan-25	84,000	24.5300	2,060,520.00	XPAR
Total for Period	354,000	24.6045	8,710,008.40

Following the share buybacks detailed above, the Company holds in total 14,415,412 treasury shares, which represents approximately 1.6% 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:
Jérôme Ramel
EVP Corporate Development & Integrated External Communication
Tel: +41.22.929.59.20
jerome.ramel@st.com

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

alexis.breton@st.com

Attachment

• C3308C -- Jan 27 2025 -- Disclosure of transactions in Own Shares PR_FINAL FOR PUBLICATION

FAQ

How many shares did STM repurchase between January 20-24, 2025?

STMicroelectronics repurchased 354,000 ordinary shares, representing 0.04% of its issued share capital, during this period.

What was the average purchase price per share for STM's January 2025 buyback?

The weighted average purchase price was EUR 24.6045 per share, with a total expenditure of EUR 8,710,008.40.

What is the purpose of STM's share repurchase program announced in June 2024?

The program aims to meet obligations arising from share option programmes and share allocations to employees or management bodies of the company or associates.

How many treasury shares does STM hold after the January 2025 buybacks?

Following these buybacks, STMicroelectronics holds 14,415,412 treasury shares, approximately 1.6% of its issued share capital.

When was STM's share repurchase program approved by shareholders?

The share repurchase program was approved by shareholders through a resolution dated May 22, 2024.