STMicroelectronics Announces Status of Common Share Repurchase Program

Rhea-AI Summary

STMicroelectronics (STM) has reported the completion of share repurchases from January 13-17, 2025, as part of its buyback program announced on June 21, 2024, and approved by shareholders on May 22, 2024. The company repurchased 385,400 ordinary shares (0.04% of issued share capital) at a weighted average price of EUR 23.8548 per share, totaling EUR 9,193,646.12.

The buyback aims to fulfill obligations from share option programs and allocations to employees and management. Following these transactions, STM holds 14,061,412 treasury shares, representing approximately 1.5% of its issued share capital. The shares were purchased on the Euronext Paris regulated market, and may be used for other lawful purposes if not needed for the primary objective.

Positive

• Strategic share repurchase program demonstrates confidence in company's financial position
• Treasury shares can be used flexibly for employee compensation or other purposes
• Relatively small buyback (0.04%) minimizes impact on company's cash position

Negative

• EUR 9.19 million cash expenditure reduces available capital for operations or investments

Insights

Financial Markets Analyst

STMicroelectronics' recent share buyback activity reveals strategic capital allocation, with the company repurchasing 385,400 shares at a weighted average price of €23.85 per share, totaling €9.19 million. The steady daily purchase volumes and gradual price increase from €23.26 to €24.62 suggest careful execution to minimize market impact. With treasury shares now at 1.5% of issued capital, the company maintains flexibility for employee stock programs while potentially supporting share price stability.

The timing and execution of these buybacks demonstrate prudent management of shareholder capital. The average purchase price represents a reasonable valuation considering STM's market position in critical semiconductor segments. The relatively small daily volumes (0.04% of issued capital) indicate a measured approach that balances price support with liquidity management. This program primarily serves to offset dilution from employee stock plans rather than signaling an aggressive return of capital to shareholders.

The buyback's execution through Euronext Paris (XPAR) maintains good market liquidity while complying with EU market abuse regulations. The treasury shares provide a buffer for future employee compensation needs while offering flexibility for other corporate purposes, though the modest size suggests impact on overall share price dynamics.

STMicroelectronics Announces Status of
Common Share Repurchase Program

Disclosure of Transactions in Own Shares – Period from Jan 13, 2025 to Jan 17, 2025

AMSTERDAM – January 20, 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 13, 2025 to Jan 17, 2025 (the “Period”), of 385,400 ordinary shares (equal to 0.04% of its issued share capital) at the weighted average purchase price per share of EUR 23.8548 and for an overall price of EUR 9,193,646.12.

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)
13-Jan-25	93,400	23.2583	2,172,325.22	XPAR
14-Jan-25	90,000	23.7321	2,135,889.00	XPAR
15-Jan-25	66,000	23.7767	1,569,262.20	XPAR
16-Jan-25	71,000	24.1702	1,716,084.20	XPAR
17-Jan-25	65,000	24.6167	1,600,085.50	XPAR
Total for Period	385,400	23.8548	9,193,646.12

Following the share buybacks detailed above, the Company holds in total 14,061,412 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

• C3306C -- Jan 20 2025 -- Disclosure of transactions in Own Shares PR_FINAL FOR PUBLICATION

FAQ

How many shares did STM repurchase between January 13-17, 2025?

STMicroelectronics repurchased 385,400 ordinary shares during this period, representing 0.04% of its issued share capital.

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

The weighted average purchase price was EUR 23.8548 per share.

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

The primary purpose is to meet obligations arising from share option programmes and share allocations to employees and management bodies.

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

Following these buybacks, STMicroelectronics holds 14,061,412 treasury shares, approximately 1.5% of its issued share capital.

When was STM's current share repurchase program approved?

The program was approved by shareholders on May 22, 2024, and announced via press release on June 21, 2024.