STMicroelectronics Announces Status of Common Share Repurchase Program
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Insights
STMicroelectronics' share repurchase program represents a significant financial maneuver with the potential to influence shareholder value and market perception. Share buybacks often signal management's confidence in the company's financial stability and future prospects and they can lead to earnings per share (EPS) enhancement by reducing the number of shares outstanding. In this case, the repurchase of 151,293 ordinary shares at a weighted average price of EUR 41.0063 for a total of EUR 6,203,958.72 indicates a proactive approach to capital allocation.
The repurchase aligns with the company's strategy to meet obligations from debt financial instruments exchangeable into equity instruments, which could imply a preemptive measure to manage dilution and stabilize share price. Holding these shares in treasury provides STMicroelectronics with flexibility for future corporate finance decisions. However, investors should monitor the company's treasury share percentage, as excessive buybacks could be a sign of fewer investment opportunities or potential overvaluation.
The semiconductor industry is characterized by cyclical demand and high capital intensity. STMicroelectronics' decision to execute a share repurchase could reflect an attempt to optimize its capital structure in a period of industry-specific challenges or opportunities. By analyzing the repurchase in the context of the semiconductor market's current state, one can infer potential strategic moves. For instance, if the industry is facing a downturn, the repurchase could be a tactic to support the share price. Conversely, in an upturn, it might reflect an excess of capital due to strong sales.
It is essential to consider the repurchase within the broader industry trends, such as the global demand for semiconductors, technological advancements and competitive dynamics. The repurchase's timing and scale could provide insights into STMicroelectronics' market positioning and expected performance relative to its peers.
The transactions conducted by STMicroelectronics fall under the regulatory framework of the Market Abuse Regulation (MAR), ensuring transparency and fairness in the market. The company's adherence to the disclosure requirements, such as the detailed reporting of individual trades, reflects regulatory compliance and corporate governance standards. The purpose of these transactions, as stated, is to meet obligations from debt financial instruments, an acceptable use under article 5(2) of MAR.
Investors should be aware of the legal context in which these buybacks occur, as it can affect the legitimacy and reception of such actions in the market. The company's transparency in disclosing these transactions helps maintain investor trust and could potentially mitigate legal risks associated with share repurchases.
STMicroelectronics Announces Status of
Common Share Repurchase Program
Disclosure of Transactions in Own Shares – Period from Feb 05, 2024 to Feb 09, 2024
AMSTERDAM – February 12, 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 05, 2024 to Feb 09, 2024 (the “Period”), of 151,293 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) |
| 2/5/2024 | 46,293 | 40.6738 | 1,882,912.22 | XPAR |
| 2/6/2024 | 40,000 | 41.0478 | 1,641,912.00 | XPAR |
| 2/7/2024 | 35,000 | 40.577 | 1,420,195.00 | XPAR |
| 2/8/2024 | 15,000 | 41.4359 | 621,538.50 | XPAR |
| 2/9/2024 | 15,000 | 42.4934 | 637,401.00 | XPAR |
| Total for Period | 151,293 | 41.0063 | 6,203,958.72 |
Following the share buybacks detailed above, the Company holds in total 9,542,086 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 period of STMicroelectronics' common share repurchase program?
How many ordinary shares did STMicroelectronics repurchase?
What was the weighted average purchase price per share for the repurchased shares?
What was the total amount paid for the repurchased shares?
What is the purpose of the repurchase transactions?
How many treasury shares does STMicroelectronics currently hold?
