STMicroelectronics Announces Status of Common Share Repurchase Program

Rhea-AI Summary

STMicroelectronics has reported the completion of share repurchases from January 6-10, 2025, as part of its common share repurchase program. The company bought back 380,700 ordinary shares (0.04% of issued share capital) at a weighted average price of EUR 24.8158 per share, totaling EUR 9,447,378.35.

The buyback program, approved by shareholders on May 22, 2024, and the supervisory board, aims to meet obligations from share option programs and allocations to employees or management. The shares may be held in treasury before being used for these purposes or other lawful purposes under Market Abuse Regulation article 5(2).

Following these transactions, STMicroelectronics now holds 13,676,012 treasury shares, representing approximately 1.5% of its issued share capital.

Positive

• Strategic share buyback program to support employee and management stock options
• Relatively small dilution impact with buyback representing only 0.04% of issued share capital
• Strong cash position demonstrated by ability to execute EUR 9.4M buyback

Negative

• Cash outflow of EUR 9.45 million for share repurchases

Insights

Financial Analyst

STMicroelectronics' latest share repurchase activity reveals strategic capital allocation, with the company buying back 380,700 shares at a weighted average price of €24.82, totaling €9.45 million. The timing and execution pattern suggest careful price sensitivity, with daily purchase volumes ranging from 68,300 to 82,500 shares, indicating a methodical approach to minimize market impact.

The treasury position now stands at 13.68 million shares, representing 1.5% of issued share capital. This modest treasury holding provides flexibility for employee compensation while maintaining a conservative balance sheet position. The declining price pattern during the buyback period, from €25.47 to €24.33, suggests the company captured increasingly favorable pricing points.

The repurchase program primarily targets employee stock options and compensation, reflecting STM's commitment to talent retention in the competitive semiconductor sector. This approach aligns with industry best practices for managing dilution from employee equity programs while maintaining financial flexibility.

Market Research Analyst

The execution of this buyback demonstrates STMicroelectronics' disciplined approach to capital deployment. The average daily trading volume during the period represents a small fraction of typical daily market volume, minimizing price impact while achieving program objectives. The purchase price range of €24.33 to €25.47 reflects market conditions in the semiconductor sector, which has been experiencing volatility.

Think of this buyback as a company systematically filling its inventory of shares - similar to how a retailer would maintain optimal stock levels. The 0.04% of outstanding shares acquired provides a strategic buffer for future employee compensation needs without significantly impacting the company's float or trading dynamics. The structured daily purchase amounts suggest a well-designed algorithm that adapts to market liquidity conditions while maintaining price discipline.

STMicroelectronics Announces Status of
Common Share Repurchase Program

Disclosure of Transactions in Own Shares – Period from Jan 6, 2025 to Jan 10, 2025

AMSTERDAM – January 13, 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 Jan 6, 2025 to Jan 10, 2025 (the “Period”), of 380,700 ordinary shares (equal to 0.04% of its issued share capital) at the weighted average purchase price per share of EUR 24.8158 and for an overall price of EUR 9,447,378.35.

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)
6-Jan-25	72,200	24.7588	1,787,585.36	XPAR
7-Jan-25	68,300	25.4689	1,739,525.87	XPAR
8-Jan-25	77,700	25.1681	1,955,561.37	XPAR
9-Jan-25	80,000	24.4715	1,957,720.00	XPAR
10-Jan-25	82,500	24.3271	2,006,985.75	XPAR
Total for Period	380,700	24.8158	9,447,378.35

Following the share buybacks detailed above, the Company holds in total 13,676,012 treasury shares, which represents approximately 1.5% 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:
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

• C3303C -- Jan 13 2025 -- Disclosure of transactions in Own Shares PR_FINAL FOR PUBLICATION

FAQ

How many shares did STM repurchase between January 6-10, 2025?

STMicroelectronics repurchased 380,700 ordinary shares during this period, representing 0.04% of its issued share capital.

What was the total cost of STM's share buyback in January 2025?

The total cost of the share buyback was EUR 9,447,378.35, at a weighted average purchase price of EUR 24.8158 per share.

What is the purpose of STM's 2025 share repurchase program?

The program aims to meet obligations arising from share option programmes and share allocations to employees or management bodies, with shares held in treasury until needed.

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

Following the buyback, STMicroelectronics holds 13,676,012 treasury shares, approximately 1.5% of its issued share capital.

When was STM's share repurchase program approved?

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