STMicroelectronics Announces Status of Common Share Repurchase Program
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Insights
STMicroelectronics' recent announcement on its common share repurchase program indicates a strategic use of its capital to manage its equity structure. Share buybacks are a common method for companies to return value to shareholders, as they can potentially increase earnings per share and return on equity by reducing the number of shares outstanding. The repurchase of 100,000 shares, although a relatively small percentage of its issued share capital (0.01%), could signal confidence from management in the company's intrinsic value and future prospects.
The weighted average purchase price of EUR 43.0907 per share, leading to an overall expenditure of EUR 4,309,066.50, reflects the company's assessment of the market value and is a direct application of capital that could affect the company's financial leverage. Investors should consider how the repurchase aligns with the company's long-term strategy and capital allocation policies, as well as its impact on the company's balance sheet liquidity.
The share repurchase activity by STMicroelectronics falls within the context of the semiconductor industry, which has seen significant growth and volatility due to global demand fluctuations and supply chain challenges. The buyback program could be interpreted as a move to stabilize stock price or a strategic maneuver in anticipation of industry shifts. Considering the company's position as a global semiconductor leader, the repurchase may also affect investor sentiment and peer benchmarking within the sector.
Additionally, the repurchase took place on the regulated market of Euronext Paris, which could be indicative of the company's commitment to transparency and regulatory compliance. Market participants might interpret this action as a positive signal regarding the company's governance practices. The disclosed transactions also provide a reference point for market liquidity and trading volumes, potentially influencing the stock's volatility and price discovery process.
The transactions conducted by STMicroelectronics are governed by the Market Abuse Regulation (EU) 596/2014, which ensures that all market participants have equal access to information and that insider trading and market manipulation are prevented. The company's adherence to article 5(2) by disclosing the purpose of the transactions—to meet obligations from debt financial instruments exchangeable into equity—demonstrates compliance with regulatory requirements.
Furthermore, the detailed disclosure of each transaction, including dates, numbers of shares purchased and prices, aligns with Article 5(1)(b) of the Market Abuse Regulation and Article 2(3) of Commission Delegated Regulation (EU) 2016/1052. This level of transparency is crucial for maintaining market integrity and investor trust. Stakeholders should note that the company's decision to hold the shares in treasury until required for the specified purpose, with the flexibility to use them for other lawful purposes, provides STMicroelectronics with strategic options for future financial planning.
STMicroelectronics Announces Status of
Common Share Repurchase Program
Disclosure of Transactions in Own Shares – Period from Mar 04, 2024 to Mar 08, 2024
AMSTERDAM – March 11, 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 July 1, 2021. The Program was approved by a shareholder resolution dated May 27, 2021 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 Mar 04, 2024 to Mar 08, 2024 (the “Period”), of 100,000 ordinary shares (equal to
The purpose of these transactions under article 5(2) of Regulation (EU) 596/2014 (the Market Abuse Regulation) was to meet obligations arising from debt financial instruments that are exchangeable into equity instruments.
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) |
| 3/4/2024 | 15,000 | 43.2811 | 649,216.50 | XPAR |
| 3/5/2024 | 20,000 | 42.6431 | 852,862.00 | XPAR |
| 3/6/2024 | 20,000 | 42.449 | 848,980.00 | XPAR |
| 3/7/2024 | 20,000 | 43.4664 | 869,328.00 | XPAR |
| 3/8/2024 | 25,000 | 43.5472 | 1,088,680.00 | XPAR |
| Total for Period | 100,000 | 43.0907 | 4,309,066.50 |
Following the share buybacks detailed above, the Company holds in total 10,016,661 treasury shares, which represents approximately
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
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FAQ
What is the purpose of STMicroelectronics' common share repurchase program?
How many ordinary shares did STMicroelectronics repurchase during the period?
What was the weighted average purchase price per share for the repurchased shares?
What is the total amount paid for the repurchased shares?
How many treasury shares does STMicroelectronics hold after the share buybacks?
