STMicroelectronics Announces Status of Common Share Repurchase Program
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The repurchase of shares by STMicroelectronics indicates proactive capital management, reflecting a strategic move by the company to optimize its financial structure. Analyzing the buybacks, we observe that the company has acquired a total of 190,000 ordinary shares at an average price of EUR 39.3620 per share. This represents a significant expenditure of approximately EUR 7.48 million, which suggests confidence in the company's intrinsic value and a positive signal to the market.
However, it is essential to assess the impact on the firm's cash reserves and whether the capital used for share repurchases could have potentially financed other growth opportunities. It's also noteworthy that these repurchases are part of meeting obligations from debt financial instruments exchangeable into equity, implying a strategic approach to managing their debt-equity ratio. Investors would evaluate how this affects the company's leverage, interest coverage and overall financial health, considering the current economic conditions and interest rate environment.
From a market perspective, STMicroelectronics' share repurchase activity could be interpreted as a sign of management's belief in the stock's undervaluation. The company's decision to buy back shares during the specified period also coincides with the stock trading at the weighted average purchase price of EUR 39.3620, which provides a reference point for market valuation. It's important to consider the broader semiconductor industry trends, competitive landscape and the company’s market positioning when evaluating the possible effects on the stock price.
Additionally, the treasury shares held by the company post-repurchase amount to approximately 1.2% of the issued share capital, a non-trivial proportion that may affect the share's liquidity and market dynamics. Investors might look for any indications of future strategic moves such as use of treasury shares for acquisitions or employee compensation, which can influence the company's strategic direction and market perception.
STMicroelectronics Announces Status of
Common Share Repurchase Program
Disclosure of Transactions in Own Shares – Period from Apr 08, 2024 to Apr 12, 2024
AMSTERDAM – April 15, 2024 -- 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 July 1, 2021. The Program was approved by a shareholder resolution dated May 27, 2021 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 Apr 08, 2024 to Apr 12, 2024 (the “Period”), of 190,000 ordinary shares (equal to
The purpose of these transactions under article 5(2) of Regulation (EU) 596/2014 (the Market Abuse Regulation) was to meet obligations arising from debt financial instruments that are exchangeable into equity instruments.
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) |
| 8-Apr-24 | 35,000 | 38.9696 | 1,363,936.00 | XPAR |
| 9-Apr-24 | 35,000 | 39.3886 | 1,378,601.00 | XPAR |
| 10-Apr-24 | 35,000 | 39.8208 | 1,393,728.00 | XPAR |
| 11-Apr-24 | 35,000 | 39.4221 | 1,379,773.50 | XPAR |
| 12-Apr-24 | 50,000 | 39.2549 | 1,962,745.00 | XPAR |
| Total for Period | 190,000 | 39.3620 | 7,478,783.50 |
Following the share buybacks detailed above, the Company holds in total 10,771,907 treasury shares, which represents approximately
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:
Céline Berthier
Group VP, Investor Relations
Tel: +41.22.929.58.12
celine.berthier@st.com
MEDIA RELATIONS:
Alexis Breton
Corporate External Communications
Tel: +33.6.59.16.79.08
alexis.breton@st.com
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