STMicroelectronics Announces Status of Common Share Repurchase Program

Rhea-AI Summary

STMicroelectronics (STM) has reported the execution of share repurchases under its common share repurchase program between January 2-3, 2025. The company bought back 188,800 ordinary shares (0.02% of issued share capital) at a weighted average price of EUR 23.7712 per share, totaling EUR 4,487,995.94.

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 holds 13,295,312 treasury shares, representing approximately 1.5% of its issued share capital.

Positive

• Strategic share repurchase demonstrates company's commitment to employee compensation programs
• Company maintains strong cash position enabling EUR 4.49M share buyback
• Treasury shares provide flexibility for future employee incentive programs

Negative

• Buyback reduces company's cash reserves by EUR 4.49M

Insights

Financial Analyst

STMicroelectronics' recent share repurchase activity represents a strategic move with multiple implications for investors. The company acquired 188,800 shares at EUR 23.7712 per share, totaling EUR 4.49 million. This represents just 0.02% of outstanding shares, bringing total treasury shares to 1.5% of issued capital. The weighted average purchase price indicates disciplined execution, with prices ranging from EUR 24.0586 to EUR 23.4024 across two trading sessions. The buyback serves dual purposes: fulfilling employee stock options and maintaining flexibility for other corporate purposes under Market Abuse Regulation guidelines. The relatively modest size suggests a balanced approach to capital allocation, preserving cash while supporting employee compensation programs. The timing and pricing of these purchases demonstrate careful market execution to minimize price impact while maximizing value.

Corporate Governance Expert

The share repurchase program reveals important governance aspects worth noting. The multi-layered approval process, including shareholder resolution and supervisory board oversight, demonstrates strong corporate governance practices. The transparency in reporting, including detailed transaction data and compliance with EU Market Abuse Regulation requirements, enhances stakeholder trust. The program's primary focus on employee stock programs indicates a commitment to aligning management and employee interests with shareholders. The 1.5% treasury share position provides adequate flexibility without excessive dilution risk. The structured approach to market transactions, spread across multiple days, shows prudent execution management. The dual-purpose nature of the buyback (employee programs and general corporate purposes) provides strategic flexibility while maintaining regulatory compliance.

STMicroelectronics Announces Status of
Common Share Repurchase Program

Disclosure of Transactions in Own Shares – Period from Jan 2, 2025 to Jan 3, 2025

AMSTERDAM – January 7, 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 2, 2025 to Jan 3, 2025 (the “Period”), of 188,800 ordinary shares (equal to 0.02% of its issued share capital) at the weighted average purchase price per share of EUR 23.7712 and for an overall price of EUR 4,487,995.94.

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)
2-Jan-25	106,100	24.0586	2,552,617.46	XPAR
3-Jan-25	82,700	23.4024	1,935,378.48	XPAR
Total for Period	188,800	23.7712	4,487,995.94

Following the share buybacks detailed above, the Company holds in total 13,295,312 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

• C3302C -- Jan 7 2025 -- Disclosure of transactions in Own Shares PR_FINAL FOR PUBLICATION

FAQ

How many shares did STM repurchase in January 2-3, 2025?

STMicroelectronics repurchased 188,800 ordinary shares during January 2-3, 2025, representing 0.02% of its issued share capital.

What was the average price per share in STM's January 2025 buyback?

The weighted average purchase price was EUR 23.7712 per share during the January 2-3, 2025 buyback period.

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

The program aims to meet obligations arising from share option programmes and 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 13,295,312 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.