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 5 to August 9, 2024. The company repurchased 373,000 ordinary shares, representing 0.04% of its issued share capital, at a weighted average purchase price of €26.6520 per share, for a total of €9,941,210.60. 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 8,947,116 treasury shares, approximately 1.0% of its issued share capital.

Positive

• Repurchased 373,000 shares, demonstrating confidence in the company's value
• Total buyback amount of €9,941,210.60, potentially enhancing shareholder value
• Shares may be used for employee stock options, aligning employee interests with shareholders

Negative

• Buyback reduces cash reserves by nearly €10 million
• Treasury shares increased to 1.0% of issued share capital, potentially limiting float

Financial Analyst

STMicroelectronics' share repurchase program is a strategic financial move with several implications. The company bought back 373,000 shares (0.04% of issued capital) at an average price of €26.6520 per share, totaling €9,941,210.60. This action can be seen as a positive signal for investors, as it often indicates management's confidence in the company's future prospects and undervaluation.

The repurchase serves dual purposes: meeting obligations for employee share programs and potentially enhancing shareholder value. By reducing the number of outstanding shares, it can boost earnings per share and return on equity metrics. However, investors should note that the impact is relatively small given the 0.04% of issued capital involved. The company now holds 1.0% of its issued capital as treasury shares, providing flexibility for future corporate actions.

Corporate Governance Expert

This share repurchase program demonstrates strong corporate governance practices at STMicroelectronics. The program was properly approved by shareholders and the supervisory board, aligning with best practices in corporate decision-making. The company's transparency in disclosing detailed transaction information, including dates, volumes and prices, enhances investor trust and complies with market regulations.

The stated purpose of meeting obligations for employee share programs is a positive aspect for talent retention and alignment of employee interests with company performance. The flexibility to use shares for "any other lawful purpose" under the Market Abuse Regulation provides strategic options but requires ongoing scrutiny to ensure it remains in shareholders' best interests. Overall, this program reflects a balanced approach to capital allocation and stakeholder management.

STMicroelectronics Announces Status of
Common Share Repurchase Program

Disclosure of Transactions in Own Shares – Period from Aug 05, 2024 to Aug 09, 2024

AMSTERDAM – August 12, 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 05, 2024 to Aug 09, 2024 (the “Period”), of 373,000 ordinary shares (equal to 0.04% of its issued share capital) at the weighted average purchase price per share of EUR 26.6520 and for an overall price of EUR 9,941,210.60.

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)
8/5/2024	76,000	26.4328	2,008,892.80	XPAR
8/6/2024	73,000	26.6911	1,948,450.30	XPAR
8/7/2024	76,000	26.9496	2,048,169.60	XPAR
8/8/2024	75,000	26.3008	1,972,560.00	XPAR
8/9/2024	73,000	26.8923	1,963,137.90	XPAR
Total for Period	373,000	26.6520	9,941,210.60

Following the share buybacks detailed above, the Company holds in total 8,947,116 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

• C3276C -- Aug 12 2024 -- Disclosure of transactions in Own Shares PR_FINAL FOR PUBLICATION

FAQ

How many shares did STMicroelectronics (STM) repurchase from August 5 to August 9, 2024?

STMicroelectronics repurchased 373,000 ordinary shares during the period from August 5 to August 9, 2024.

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

The weighted average purchase price per share for STMicroelectronics' buyback was €26.6520.

What is the total value of STM's share repurchase from August 5-9, 2024?

The total value of STMicroelectronics' share repurchase for the period was €9,941,210.60.

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 STM hold after the August 2024 buyback?

After the buyback, STMicroelectronics holds a total of 8,947,116 treasury shares, approximately 1.0% of its issued share capital.