StoneCo. Announces New Share Repurchase Program of up to R$ 2 billion

Rhea-AI Summary

StoneCo has announced a new share repurchase program of up to R$ 2 billion in outstanding Class A common shares, replacing the previous program from November 2023. Under the former program, Stone repurchased 13,202,939 shares at an average price of US$ 13.52 per share, totaling US$ 178.3 million. The new program has no fixed expiration date and will be executed through open market transactions, block trades, and privately negotiated transactions, subject to market conditions and other factors.

Positive

• Successfully completed previous R$1 billion share repurchase program
• Strong financial position enabling new R$2 billion buyback program
• Previous buyback executed at favorable average price of US$13.52 per share

Negative

• None.

Insights

Financial Analyst

The announcement of a R$2 billion share repurchase program represents a significant capital return initiative, doubling the size of the previous R$1 billion program. Under the completed program, Stone demonstrated strong execution by repurchasing shares at an average price of $13.52, deploying $178.3 million effectively.

The new program's flexibility, without a fixed expiration date, provides strategic advantages in timing purchases. Stone's willingness to substantially increase the buyback size signals management's confidence in the company's cash generation capabilities and their view that shares may be undervalued. The upcoming structured framework for capital allocation should provide valuable visibility into the company's financial strategy and priorities.

George Town, Grand Cayman--(Newsfile Corp. - November 21, 2024) - StoneCo Ltd. (NASDAQ: STNE) (B3: STOC31) ("Stone" or "the Company") announced that its Board of Directors, pursuant to written resolutions dated November 21st, 2024, has authorized a share repurchase program, under which Stone may repurchase up to R$ 2 billion in outstanding Class A common shares. The program approved does not have a fixed expiration date.

This new share repurchase program replaces the previous share repurchase program announced by Stone on November 14th, 2023. Under the former program, Stone repurchased a total of 13,202,939 shares at an average price of US$ 13.52 per share, totaling US$ 178.3 million.

"We are pleased to announce the completion of our previous R$1 billion share repurchase program, underscoring our robust financial position. As part of our ongoing commitment to maximizing shareholder returns, we continuously evaluate the most effective use of our resources. Confident in our long-term vision, we have approved a new buyback program to seize the current market opportunities. Furthermore, we are finalizing a structured framework to guide our capital allocation strategy, which will enhance transparency and align with our strategic priorities once shared with the market," said Pedro Zinner, CEO.

The share repurchases may be made from time to time through open market transactions, block trades, privately negotiated transactions, or otherwise and are subject to market and business conditions, levels of available liquidity, cash requirements for other purposes, regulatory, and other relevant factors.

About StoneCo

StoneCo is a leading provider of financial services and software solutions that empower merchants to conduct commerce seamlessly across multiple channels and help them grow their businesses.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. These statements identify prospective information and may include words such as "believe," "may," "will," "aim," "estimate," "continue," "anticipate," "intend," "expect," "forecast," "plan," "predict," "project," "potential," "aspiration," "objectives," "should," "purpose," "belief," and similar, or variations of, or the negative of such words and expressions, although not all forward-looking statements contain these identifying words.

Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Stone's control.

Stone's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: more intense competition than expected, lower addition of new clients, regulatory measures, more investments in our business than expected, and our inability to execute successfully upon our strategic initiatives, among other factors.

Contact:

Investor Relations
investors@stone.co

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/230978

FAQ

How much is StoneCo's new share repurchase program worth?

StoneCo's new share repurchase program is worth up to R$ 2 billion in outstanding Class A common shares.

How many shares did STNE repurchase under its previous program?

Under the previous program, StoneCo repurchased 13,202,939 shares at an average price of US$ 13.52 per share, totaling US$ 178.3 million.

When was STNE's new share repurchase program announced?

StoneCo announced the new share repurchase program on November 21, 2024.

Does STNE's new buyback program have an expiration date?

No, the new share repurchase program does not have a fixed expiration date.