STMicroelectronics Announces Status of Common Share Repurchase Program
- None.
- None.
Insights
STMicroelectronics' recent share repurchase activity represents a strategic financial decision, often interpreted as a signal of self-assurance in the company's valuation. By buying back shares at a weighted average price of EUR 42.2351, the company is effectively reducing its shares outstanding, which can lead to an increase in earnings per share (EPS) and potentially boost investor sentiment.
From a financial perspective, the repurchase of 135,318 ordinary shares, though a modest 0.01% of the issued share capital, still accounts for a considerable expenditure of EUR 5,715,173.62. This action may reflect the company's liquidity and cash flow management strategies. Investors should monitor the treasury shares' role in fulfilling obligations of debt instruments exchangeable into equity, as this could influence the company's leverage and capital structure.
Moreover, the retention of repurchased shares in treasury provides STMicroelectronics with flexibility for future corporate actions, including employee compensation plans or further share buybacks. The impact on the stock market could be positive if the market views these repurchases as a sign of a undervalued stock or strong future prospects.
The semiconductor industry is characterized by cyclical demand and rapid technological advancements. STMicroelectronics' share repurchase may be interpreted as a strategic move to optimize capital allocation amidst industry-specific challenges such as fluctuating demand, supply chain constraints and intense competition.
Investors should consider the broader industry context, including the current semiconductor market trends and the company's competitive positioning. The repurchase program could be a proactive measure to manage capital in anticipation of industry headwinds or to prepare for strategic investments and acquisitions.
Additionally, the share repurchase's timing and scale might reflect the company's confidence in its operational performance and future growth prospects. Analysts should compare these repurchases with industry peers to gauge STMicroelectronics' financial health relative to the competition.
The share repurchase program of STMicroelectronics is conducted under the strict regulations of the Market Abuse Regulation (EU) 596/2014, ensuring transparency and compliance with legal frameworks. The disclosure of detailed transactions serves to maintain market integrity and investor trust.
It is crucial for investors to understand that such financial activities are tightly regulated to prevent market abuse and to ensure that all market participants have access to the same information. The company's adherence to Article 5(1)(b) of the Market Abuse Regulation and Article 2(3) of Commission Delegated Regulation (EU) 2016/1052 by providing a full breakdown of individual trades exemplifies regulatory compliance.
Legal scrutiny of these transactions ensures that the repurchase program does not unfairly influence the market price of the shares. The disclosed purpose of meeting obligations from debt financial instruments exchangeable into equity highlights the company's strategic financial planning within the boundaries of the law.
STMicroelectronics Announces Status of
Common Share Repurchase Program
Disclosure of Transactions in Own Shares – Period from Feb 12, 2024 to Feb 16, 2024
AMSTERDAM – February 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 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 Feb 12, 2024 to Feb 16, 2024 (the “Period”), of 135,318 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) |
| 2/12/2024 | 15,000 | 43.0309 | 645,463.50 | XPAR |
| 2/13/2024 | 40,318 | 41.9532 | 1,691,469.12 | XPAR |
| 2/14/2024 | 30,000 | 41.6315 | 1,248,945.00 | XPAR |
| 2/15/2024 | 20,000 | 42.3368 | 846,736.00 | XPAR |
| 2/16/2024 | 30,000 | 42.752 | 1,282,560.00 | XPAR |
| Total for Period | 135,318 | 42.2351 | 5,715,173.62 |
Following the share buybacks detailed above, the Company holds in total 9,677,404 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
Attachment
FAQ
What is the period of the common share repurchase program announced by STMicroelectronics (STM)?
How many ordinary shares did STMicroelectronics (STM) repurchase during the period?
What was the weighted average purchase price per share for the repurchased shares by STMicroelectronics (STM)?
What was the total amount paid by STMicroelectronics (STM) for the repurchased shares?
What was the purpose of the repurchase transactions conducted by STMicroelectronics (STM)?
