STMicroelectronics Announces Status of Common Share Repurchase Program
STMicroelectronics (STM) has announced the status of its common share repurchase program for the period from July 22 to July 26, 2024. The company repurchased 331,940 ordinary shares, representing 0.04% of its issued share capital, at a weighted average purchase price of €34.5040 per share. The total cost of the buyback was €11,453,255.84. 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 9,099,607 treasury shares, approximately 1.0% of its issued share capital.
STMicroelectronics (STM) ha annunciato lo stato del suo programma di riacquisto di azioni ordinarie per il periodo dal 22 al 26 luglio 2024. L'azienda ha riacquistato 331.940 azioni ordinarie, che rappresentano lo 0,04% del suo capitale azionario emesso, a un prezzo medio ponderato di acquisto di €34,5040 per azione. Il costo totale del riacquisto è stato di €11.453.255,84. Lo scopo di queste operazioni è quello di soddisfare gli obblighi derivanti dai programmi di opzioni sulle azioni o da altre assegnazioni di azioni ai dipendenti o agli organi societari. Dopo questi riacquisti, STMicroelectronics detiene ora 9.099.607 azioni proprie, circa l'1,0% del suo capitale azionario emesso.
STMicroelectronics (STM) ha anunciado el estado de su programa de recompra de acciones comunes para el periodo del 22 al 26 de julio de 2024. La empresa ha recomprado 331,940 acciones ordinarias, que representan el 0.04% de su capital social emitido, a un precio de compra medio ponderado de €34.5040 por acción. El coste total de la recompra fue de €11,453,255.84. El propósito de estas transacciones es cumplir con las obligaciones derivadas de los programas de opciones sobre acciones u otras asignaciones de acciones a empleados o cuerpos societarios. Tras estas recompras, STMicroelectronics ahora posee 9,099,607 acciones en tesorería, aproximadamente el 1.0% de su capital social emitido.
STMicroelectronics (STM)은 2024년 7월 22일부터 7월 26일까지의 일반 주식 매입 프로그램 상태를 발표했습니다. 이 회사는 331,940주의 보통주를 재매입했으며, 이는 발행 주식 자본의 0.04%에 해당하고, 주당 평균 매입 가격은 €34.5040입니다. 매입의 총 비용은 €11,453,255.84입니다. 이러한 거래의 목적은 직원이나 회사 기관에 대한 주식 옵션 프로그램 또는 기타 주식 배정으로 인한 의무를 충족하기 위한 것입니다. 이러한 재매입 이후, STMicroelectronics는 현재 9,099,607주의 자사주를 보유하고 있으며, 이는 발행 주식 자본의 약 1.0%입니다.
STMicroelectronics (STM) a annoncé l'état de son programme de rachat d'actions ordinaires pour la période du 22 au 26 juillet 2024. L'entreprise a racheté 331 940 actions ordinaires, représentant 0,04 % de son capital social émis, à un prix d'achat moyen pondéré de 34,5040 € par action. Le coût total du rachat s'est élevé à 11 453 255,84 €. Le but de ces opérations est de répondre aux obligations découlant des programmes d'options sur actions ou d'autres allocations d'actions aux employés ou aux organes de la société. Suite à ces rachats, STMicroelectronics détient désormais 9 099 607 actions propres, soit environ 1,0 % de son capital social émis.
STMicroelectronics (STM) hat den Status seines Programms zum Rückkauf von Stammaktien für den Zeitraum vom 22. bis 26. Juli 2024 bekannt gegeben. Das Unternehmen hat 331.940 Stammaktien zurückgekauft, was 0,04% seines ausgegebenen Aktienkapitals entspricht, zu einem gewichteten durchschnittlichen Kaufpreis von €34,5040 pro Aktie. Die Gesamtkosten des Rückkaufs betrugen €11.453.255,84. Der Zweck dieser Transaktionen besteht darin, Verpflichtungen aus Aktienoptionsprogrammen oder anderen Aktienzuweisungen an Mitarbeiter oder Unternehmensorgane zu erfüllen. Nach diesen Rückkäufen hält STMicroelectronics jetzt 9.099.607 eigene Aktien, was ungefähr 1,0% des ausgegebenen Aktienkapitals ausmacht.
- Repurchased 331,940 shares, potentially increasing shareholder value
- Buyback program demonstrates confidence in company's financial position
- Shares can be used for employee stock options, aligning employee interests with shareholders
- Spent €11,453,255.84 on share repurchases, reducing available cash for other investments
Insights
STMicroelectronics' share repurchase program, while a routine corporate action, carries subtle yet significant implications for investors. The company's buyback of 331,940 shares (0.04% of issued share capital) at a weighted average price of
This move serves dual purposes: firstly, it fulfills obligations related to employee stock options and share allocations, which can be seen as a positive for talent retention and alignment of employee interests with shareholders. Secondly, it provides flexibility for other lawful purposes under the Market Abuse Regulation, potentially including future capital structure optimization.
The repurchase price range of
Investors should note the potential impact on earnings per share (EPS) and return on equity (ROE), which may see a slight boost due to the reduced share count. However, the effect is likely to be minimal given the small scale of the buyback.
While share repurchases can be viewed positively, they also raise questions about the company's growth prospects and capital allocation strategy. Investors should consider whether STMicroelectronics could generate higher returns by reinvesting in R&D or pursuing strategic acquisitions in the dynamic semiconductor industry.
STMicroelectronics' share repurchase program reveals several key aspects of its corporate governance practices. The program's approval by both shareholders and the supervisory board demonstrates a commitment to proper oversight and alignment with shareholder interests.
The company's adherence to Market Abuse Regulation guidelines, particularly Article 5(2), showcases strong regulatory compliance. This transparency extends to the detailed disclosure of daily transaction data, which goes beyond minimum requirements and fosters investor trust.
The primary stated purpose of meeting obligations for employee share programs is a positive governance signal. It indicates a focus on aligning employee incentives with company performance, which can enhance long-term value creation. However, the flexibility to use shares for "any other lawful purpose" warrants attention from governance-focused investors.
The repurchase's modest scale (
Investors should monitor future uses of the repurchased shares and any changes in the company's capital allocation strategy. The current approach appears to strike a reasonable balance between shareholder returns and maintaining financial flexibility for future growth initiatives.
STMicroelectronics Announces Status of
Common Share Repurchase Program
Disclosure of Transactions in Own Shares – Period from Jul 22, 2024 to Jul 26, 2024
AMSTERDAM – July 29, 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 Jul 22, 2024 to Jul 26, 2024 (the “Period”), of 331,940 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 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) |
| 22-Jul-24 | 55,900 | 37.639 | 2,104,020.10 | XPAR |
| 23-Jul-24 | 50,140 | 37.1705 | 1,863,728.87 | XPAR |
| 24-Jul-24 | 62,900 | 37.1763 | 2,338,389.27 | XPAR |
| 25-Jul-24 | 74,000 | 32.4145 | 2,398,673.00 | XPAR |
| 26-Jul-24 | 89,000 | 30.8814 | 2,748,444.60 | XPAR |
| Total for Period | 331,940 | 34.5040 | 11,453,255.84 |
Following the share buybacks detailed above, the Company holds in total 9,099,607 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
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FAQ
How many shares did STMicroelectronics (STM) repurchase from July 22 to July 26, 2024?
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What is the purpose of STMicroelectronics' (STM) share repurchase program?
How many treasury shares does STMicroelectronics (STM) hold after the recent buybacks?
