Weekly Report (April 5-11, 2024) on the First Tranche of Stellantis 2024 Share Buyback Program
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Observing Stellantis N.V.'s share buyback initiative, it's pivotal to assess the implications on shareholder value. The repurchase of shares can often lead to an elevation in earnings per share (EPS) due to the reduced share count, potentially bumping up the stock price as well. However, it's essential to balance this view by considering the company's opportunity cost of investing the €534 million elsewhere. Given the scale of the buyback, this strategic move could posit confidence in Stellantis' internal valuation, possibly hinting at the management's belief that the stock is undervalued.
Moreover, one might probe into the company's capital allocation strategy. The sizable treasury holding after the buyback, at 4.05% of the total issued share capital, might serve as a buffer for future strategic actions, such as mergers and acquisitions (M&A), financial flexibility in downturns, or to offset the dilutive effect of stock options. The exact motivations can only be speculated, but the financial health of Stellantis, along with broader automotive industry trends, will be the guiding light for investors interpreting this action.
Digging into the automotive sector's recent performance, a share buyback of this magnitude by Stellantis could reflect broader industry dynamics. It's essential to contextualize this activity within the sector's current headwinds, like supply chain disruptions and the transition to electric vehicles (EVs). If peers are also engaging in buybacks or showing similar patterns of strong balance sheets and cash flow, it could signal a sector-wide bullish sentiment, which might affect the market's perception of future growth prospects.
It’s also intriguing to see the distribution of repurchases across different trading venues, hinting at a meticulous execution strategy to minimize market impact. These details may not always capture headlines but can offer insights into how well a company's financial team is managing market operations, which could ultimately influence investor sentiment.
Weekly Report (April 5-11, 2024) on the First Tranche of Stellantis 2024 Share Buyback Program
AMSTERDAM, April 12, 2024 - Stellantis N.V. (“Stellantis” or the “Company”) announced today that pursuant to its First Tranche of the 2024 Share Buyback Program announced on February 28, 2024, covering up to
| Date | Number of Shares Repurchased | Average Market Purchase Price in € per share | Repurchased Volume in € (excluding fees) | Venues |
| 05-apr-24 | 1 117 193 | MI | ||
| 05-apr-24 | 175 213 | CEUX | ||
| 05-apr-24 | 38 298 | TQEX | ||
| Total | 1 330 704 |
Since February 28, 2024 up to and including April 11, 2024, the Company has purchased a total of 21,103,441 common shares for a total consideration of
As of April 11, 2024, the Company held in treasury No. 163,193,738 common shares equal to
A comprehensive overview of the transactions carried out under the buyback program, as well as the details of the above transactions, are available on Stellantis’ corporate website under the Share Buyback Program Section www.stellantis.com/en/investors/stock-and-shareholder-info/share-buyback-program.
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About Stellantis
Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world’s leading automakers aiming to provide clean, safe and affordable freedom of mobility to all. It’s best known for its unique portfolio of iconic and innovative brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Stellantis is executing its Dare Forward 2030, a bold strategic plan that paves the way to achieve the ambitious target of becoming a carbon net zero mobility tech company by 2038, with single-digit percentage compensation of the remaining emissions, while creating added value for all stakeholders. For more information, visit www.stellantis.com
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| For more information, contact: communications@stellantis.com www.stellantis.com | ||||||||
FORWARD-LOOKING STATEMENTS
This communication contains forward-looking statements. In particular, statements regarding future events and anticipated results of operations, business strategies, the anticipated benefits of the proposed transaction, future financial and operating results, the anticipated closing date for the proposed transaction and other anticipated aspects of our operations or operating results are forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, “prospects”, “plan”, or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on Stellantis’ current state of knowledge, future expectations and projections about future events and are by their nature, subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them.
Actual results may differ materially from those expressed in forward-looking statements as a result of a variety of factors, including: the ability of Stellantis to launch new products successfully and to maintain vehicle shipment volumes; changes in the global financial markets, general economic environment and changes in demand for automotive products, which is subject to cyclicality; Stellantis’ ability to successfully manage the industry-wide transition from internal combustion engines to full electrification; Stellantis’ ability to offer innovative, attractive products and to develop, manufacture and sell vehicles with advanced features including enhanced electrification, connectivity and autonomous-driving characteristics; Stellantis’ ability to produce or procure electric batteries with competitive performance, cost and at required volumes; Stellantis’ ability to successfully launch new businesses and integrate acquisitions; a significant malfunction, disruption or security breach compromising information technology systems or the electronic control systems contained in Stellantis’ vehicles; exchange rate fluctuations, interest rate changes, credit risk and other market risks; increases in costs, disruptions of supply or shortages of raw materials, parts, components and systems used in Stellantis’ vehicles; changes in local economic and political conditions; changes in trade policy, the imposition of global and regional tariffs or tariffs targeted to the automotive industry, the enactment of tax reforms or other changes in tax laws and regulations; the level of governmental economic incentives available to support the adoption of battery electric vehicles; the impact of increasingly stringent regulations regarding fuel efficiency requirements and reduced greenhouse gas and tailpipe emissions; various types of claims, lawsuits, governmental investigations and other contingencies, including product liability and warranty claims and environmental claims, investigations and lawsuits; material operating expenditures in relation to compliance with environmental, health and safety regulations; the level of competition in the automotive industry, which may increase due to consolidation and new entrants; Stellantis’ ability to attract and retain experienced management and employees; exposure to shortfalls in the funding of Stellantis’ defined benefit pension plans; Stellantis’ ability to provide or arrange for access to adequate financing for dealers and retail customers and associated risks related to the operations of financial services companies; Stellantis’ ability to access funding to execute its business plan; Stellantis’ ability to realize anticipated benefits from joint venture arrangements; disruptions arising from political, social and economic instability; risks associated with Stellantis’ relationships with employees, dealers and suppliers; Stellantis’ ability to maintain effective internal controls over financial reporting; developments in labor and industrial relations and developments in applicable labor laws; earthquakes or other disasters; risks and other items described in Stellantis’ Annual Report on Form 20-F for the year ended December 31, 2023 and Current Reports on Form 6-K and amendments thereto filed with the SEC; and other risks and uncertainties.
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