STMicroelectronics Announces Status of Common Share Repurchase Program

Rhea-AI Summary

STMicroelectronics (STM) has reported the latest status of its common share repurchase program from March 10-14, 2025. The company repurchased 281,500 ordinary shares (0.03% of issued share capital) at a weighted average price of EUR 22.5101 per share, totaling EUR 6,336,599.10.

The buyback program, approved by shareholders on May 22, 2024, and the supervisory board, aims to fulfill obligations from share option programs and allocations to employees or management. Following these transactions, STM now holds 16,726,512 treasury shares, representing approximately 1.8% of its issued share capital. The shares may be used for employee compensation or other lawful purposes under Market Abuse Regulation article 5(2).

Positive

• Strategic share buyback demonstrates company's commitment to employee compensation programs
• Company maintains strong cash position to execute EUR 6.3M share repurchase
• Relatively small buyback (0.03% of shares) minimizes impact on share float

Negative

• EUR 6.3M cash expenditure reduces available capital for other investments
• Potential dilution if treasury shares are used for employee compensation

Insights

Financial Analyst

STMicroelectronics' share repurchase update represents a routine execution of their previously announced buyback program from June 2024. The company purchased 281,500 shares (0.03% of outstanding shares) at an average price of €22.51 for a total of €6.34 million.

This buyback is specifically earmarked for employee compensation programs rather than for strategic capital return, which limits its investment significance. The repurchased amount is minimal relative to STM's $21.95 billion market capitalization, representing just 0.03% of the company's value.

After this transaction, STM holds 16.73 million treasury shares (1.8% of issued capital). While share repurchases generally support EPS by reducing share count, this particular buyback's size and operational purpose (satisfying employee share obligations) suggests negligible impact on shareholder value or financial metrics.

This type of routine repurchase primarily represents ordinary course execution of the company's compensation strategy rather than a meaningful capital allocation decision or signal about management's view on valuation. For semiconductor investors, more relevant focus areas would include STM's product roadmap, competitive positioning, and margin trends rather than these standard treasury operations.

STMicroelectronics Announces Status of
Common Share Repurchase Program

Disclosure of Transactions in Own Shares – Period from Mar 10, 2025 to Mar 14, 2025

AMSTERDAM – March 17, 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 Mar 10, 2025 to Mar 14, 2025 (the “Period”), of 281,500 ordinary shares (equal to 0.03% of its issued share capital) at the weighted average purchase price per share of EUR 22.5101 and for an overall price of EUR    6,336,599.10.

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)
10-Mar-25	500	23.5962	11,798.10	XPAR
11-Mar-25	35,000	23.1469	810,141.50	XPAR
12-Mar-25	61,000	22.7700	1,388,970.00	XPAR
13-Mar-25	95,000	22.1993	2,108,933.50	XPAR
14-Mar-25	90,000	22.4084	2,016,756.00	XPAR
Total for Period	281,500	22.5101	6,336,599.10

Following the share buybacks detailed above, the Company holds in total 16,726,512 treasury shares, which represents approximately 1.8% 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 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 on track to be carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 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

• C3321C -- Mar 17 2025 -- Disclosure of transactions in Own Shares PR_FINAL FOR PUBLICATION

FAQ

How many shares did STM repurchase between March 10-14, 2025?

STM repurchased 281,500 ordinary shares, representing 0.03% of its issued share capital, at an average price of EUR 22.5101 per share.

What is the total value of STM's share repurchase for March 10-14, 2025?

The total value of the share repurchase was EUR 6,336,599.10.

How many treasury shares does STM hold after the March 2025 buyback?

Following the buyback, STM holds 16,726,512 treasury shares, approximately 1.8% of its issued share capital.

What is the purpose of STM's share repurchase program?

The program aims to meet obligations from share option programmes and allocations to employees or management, with shares potentially used for other lawful purposes if not needed for compensation.

When was STM's share repurchase program approved?

The program was approved by shareholders on May 22, 2024, and subsequently by the supervisory board.