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 26 to August 30, 2024. The company repurchased 69,670 ordinary shares, representing 0.01% of its issued share capital, at a weighted average purchase price of €28.0277 per share, for a total of €1,952,689.86. The buyback was executed on the Euronext Paris regulated market.

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 9,735,586 treasury shares, approximately 1.1% of its issued share capital. The repurchase program was approved by shareholders on May 22, 2024, and by the supervisory board.

Positive

• Share repurchase program demonstrates confidence in the company's financial position
• Buyback helps meet obligations for employee share programs without diluting existing shareholders
• Company now holds 1.1% of issued share capital in treasury, providing flexibility for future use

Negative

• €1,952,689.86 spent on share repurchases reduces cash available for other investments or operations

Insights

Financial Analyst

STMicroelectronics' recent share repurchase program, while routine, offers insights into the company's financial strategy. The repurchase of 69,670 shares at an average price of €28.0277 demonstrates a modest investment of €1.95 million in its own stock. This represents only 0.01% of issued share capital, indicating a conservative approach to buybacks. The stated purpose of meeting employee share obligations suggests a focus on talent retention and alignment of employee interests with shareholders. With 1.1% of issued capital now held as treasury shares, STMicroelectronics maintains flexibility for future employee incentives or other corporate actions without significantly impacting its capital structure or liquidity position.

Market Research Analyst

The timing and volume of STMicroelectronics' share repurchases provide valuable market insights. The average purchase price of €28.0277 suggests the company views its shares as undervalued or fairly valued at current levels. This could indicate management's confidence in future performance. However, the relatively small volume (0.01% of issued capital) implies a cautious stance, possibly due to market volatility or anticipated need for cash reserves. The buyback's impact on stock liquidity appears minimal, which is important for maintaining investor interest. Investors should monitor future repurchase activities for signs of changing management perspectives on share valuation and capital allocation strategies.

STMicroelectronics Announces Status of
Common Share Repurchase Program

Disclosure of Transactions in Own Shares – Period from Aug 26, 2024 to Aug 30, 2024

AMSTERDAM – September 2, 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 26, 2024 to Aug 30, 2024 (the “Period”), of 69,670 ordinary shares (equal to 0.01% of its issued share capital) at the weighted average purchase price per share of EUR 28.0277 and for an overall price of EUR 1,952,689.86.

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)
26-Aug-24	69,670	28.0277	1,952,689.86	XPAR
Total for Period	69,670	28.0277	1,952,689.86

Following the share buybacks detailed above, the Company holds in total 9,735,586 treasury shares, which represents approximately 1.1% 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

• C3281C -- Sep 2 2024 -- Disclosure of transactions in Own Shares PR_FINAL FOR PUBLICATION

FAQ

How many shares did STMicroelectronics (STM) repurchase between August 26-30, 2024?

STMicroelectronics repurchased 69,670 ordinary shares between August 26-30, 2024.

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

The weighted average purchase price per share was €28.0277 for the buyback period of August 26-30, 2024.

What is the total value of STMicroelectronics' share repurchases from August 26-30, 2024?

The total value of STMicroelectronics' share repurchases for the period was €1,952,689.86.

What percentage of STM's issued share capital does the company now hold in treasury shares?

Following the recent buybacks, STMicroelectronics holds approximately 1.1% of its issued share capital in treasury shares.

What is the primary purpose of STMicroelectronics' share repurchase program?

The primary purpose is to meet obligations arising from share option programs or other share allocations to employees or company bodies.