StoneCo Ltd. Announces New Share Repurchase Program and the Repurchase of US$ 199 Million Under the Former Program

Rhea-AI Summary

StoneCo Ltd. (NASDAQ: STNE) has authorized a new share repurchase program allowing the buyback of up to US$ 200 million in Class A common shares, superseding the previous program initiated in May 2019. The former program saw the repurchase of 3,595,713 shares at an average of USD 55.40 per share. The new repurchase program has no fixed expiration and will be executed depending on market conditions, liquidity, and other factors. This move reflects the company's commitment to enhancing shareholder value.

Positive

• Share repurchase program worth US$ 200 million may enhance shareholder value.
• Previous buyback of 3,595,713 shares indicates a history of returning value to shareholders.

Negative

• Opportunity cost of utilizing US$ 200 million for share repurchase instead of potential business investments.
• Dependence on market conditions for execution may limit effectiveness.

GEORGE TOWN, Grand Cayman, May 20, 2021 (GLOBE NEWSWIRE) -- StoneCo Ltd. (NASDAQ: STNE) (“Stone”) announced that its Board of Directors, pursuant to written resolutions dated May 19, 2021, has authorized a share repurchase program, under which Stone may repurchase up to US$ 200 million in outstanding Class A common shares.

This new share repurchase program is a replacement to the previous share repurchase program announced by Stone on May 13, 2019. Under the former program, Stone repurchased a total of 3,595,713 shares on an average price of USD 55.40 per share, with a total amount of US$ 199.2 million.

The new repurchase program will go into effect when Stone begins the share repurchases, which must occur within six (6) months counted as of the date of the Board Resolution by means of which the program was approved and does not have a fixed expiration date. 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 Stone

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

Contact:

Investor Relations

investors@stone.co

FAQ

What is the purpose of the new share repurchase program by StoneCo (STNE)?

The program aims to enhance shareholder value by repurchasing up to US$ 200 million in outstanding Class A common shares.

How much did StoneCo spend on its previous share repurchase program?

StoneCo repurchased a total of 3,595,713 shares for approximately US$ 199.2 million under the previous program.

When will the new share repurchase program for StoneCo (STNE) take effect?

The new program will start when Stone begins the share repurchases, within six months from the Board Resolution date.

What factors will influence the share repurchases by StoneCo (STNE)?

Repurchases will depend on market and business conditions, liquidity, and other relevant factors.