STMicroelectronics Announces Status of Common Share Repurchase Program
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Insights
The repurchase of shares by STMicroelectronics represents a strategic financial maneuver that may influence the company's stock price and equity structure. From a financial perspective, share repurchases often signal management's confidence in the company's value, potentially leading to a positive market reaction. It's important to consider the weighted average purchase price of EUR 41.6591 against the current market price to assess the repurchase's timing and its potential impact on earnings per share (EPS). If the buyback price is below the intrinsic value, it could be accretive to EPS, benefiting shareholders. The buyback also has implications for the company's capital allocation strategy, indicating a preference for returning value to shareholders over other investments or acquisitions.
The semiconductor industry is highly cyclical and capital-intensive. STMicroelectronics' decision to repurchase shares may reflect an effort to optimize capital structure and shareholder value amidst industry-specific challenges such as fluctuating demand and pricing and supply chain constraints. Analyzing the 1.0% treasury shares in the context of the company's total issued share capital can provide insights into future corporate actions, such as potential share buybacks or use of treasury shares for employee compensation plans. Additionally, the buyback activity could be compared with competitors' strategies to gauge STMicroelectronics' financial health and competitive positioning within the sector.
STMicroelectronics' share repurchase program is conducted under the regulatory framework of the Market Abuse Regulation (EU) 596/2014, ensuring transparency and compliance. The legal implications of this program include adherence to pre-set trading plans, disclosure requirements and limitations on trading volumes. The company's obligation to disclose a detailed breakdown of individual trades is crucial for maintaining market integrity. Legal experts might scrutinize the transactions for compliance with Article 5(1)(b) of the Market Abuse Regulation and the Commission Delegated Regulation (EU) 2016/1052. It's also noteworthy that the shares are being repurchased to meet obligations from debt financial instruments, which suggests a strategic approach to managing the company's leverage and financial obligations.
STMicroelectronics Announces Status of
Common Share Repurchase Program
Disclosure of Transactions in Own Shares – Period from Jan 22, 2024 to Jan 26, 2024
AMSTERDAM – January 29, 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 Jan 22, 2024 to Jan 26, 2024 (the “Period”), of 164,962 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) |
| 1/22/2024 | 30,000 | 41.3524 | 1,240,572.00 | XPAR |
| 1/23/2024 | 30,000 | 41.919 | 1,257,570.00 | XPAR |
| 1/24/2024 | 30,000 | 42.2589 | 1,267,767.00 | XPAR |
| 1/25/2024 | 35,000 | 41.7968 | 1,462,888.00 | XPAR |
| 1/26/2024 | 39,962 | 41.1235 | 1,643,377.31 | XPAR |
| Total for Period | 164,962 | 41.6591 | 6,872,174.31 |
Following the share buybacks detailed above, the Company holds in total 9,181,747 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 the share repurchase transactions?
How many ordinary shares were purchased in the period?
What is the total amount paid for the shares purchased?
What percentage of the company's issued share capital do the treasury shares represent?
