STMicroelectronics Announces Status of Common Share Repurchase Program

Rhea-AI Summary

STMicroelectronics (STM) has reported the completion of share repurchases from February 10-14, 2025, as part of its buyback program announced on June 21, 2024, and approved by shareholders on May 22, 2024. The company repurchased 287,561 ordinary shares (0.03% of issued share capital) at a weighted average price of EUR 21.9758 per share, totaling EUR 6,319,388.73.

The shares were bought on Euronext Paris to meet obligations from share option programs and employee allocations. Following these transactions, STM holds 15,898,511 treasury shares, representing approximately 1.7% of its issued share capital. The shares may be held in treasury before being used for their intended purpose or other lawful purposes under Market Abuse Regulation article 5(2).

Positive

• Strategic share repurchase program demonstrates commitment to shareholder value
• Treasury shares can be used flexibly for employee compensation or other purposes
• Relatively small buyback (0.03%) minimizes impact on company's cash position

Negative

• EUR 6.32 million cash outflow reduces available capital for operations or investments

Insights

Financial Analyst

STMicroelectronics' latest share repurchase report reveals a strategic deployment of EUR 6.32 million to acquire 287,561 shares at an average price of EUR 21.98. While this week's buyback volume represents a modest 0.03% of the company's issued share capital, it's part of a broader capital return strategy that has accumulated 1.7% of shares in treasury.

The primary purpose of these repurchases - supporting employee and management share programs - reflects a balanced approach to talent retention in the highly competitive semiconductor industry. This strategy serves dual purposes: it helps minimize future share dilution from equity compensation while providing a supportive floor for the stock price.

The execution pattern shows measured buying across the week, with larger volumes front-loaded when prices were lower (102,000 shares at EUR 21.78 on the first day), demonstrating disciplined cost-averaging. The gradual reduction in daily purchase volumes as prices rose indicates prudent treasury management and price sensitivity.

From a financial perspective, STM's treasury share position of 15.9 million shares provides substantial flexibility for employee compensation without requiring immediate market purchases at potentially higher prices. This forward-looking approach to managing equity obligations is particularly relevant given the cyclical nature of the semiconductor industry and the importance of retaining key talent through market cycles.

The buyback program's modest size relative to STM's market capitalization suggests a conservative approach to capital allocation, maintaining flexibility for strategic investments in R&D and manufacturing capacity - important factors in the semiconductor sector where technology leadership and production capabilities are key competitive advantages.

STMicroelectronics Announces Status of
Common Share Repurchase Program

Disclosure of Transactions in Own Shares – Period from Feb 10, 2025 to Feb 14, 2025

AMSTERDAM – February 17, 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 Feb 10, 2025 to Feb 14, 2025 (the “Period”), of 287,561 ordinary shares (equal to 0.03% of its issued share capital) at the weighted average purchase price per share of EUR 21.9758 and for an overall price of EUR 6,319,388.73.

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)
10-Feb-25	102,000	21.7812	2,221,682.40	XPAR
11-Feb-25	89,055	21.9514	1,954,881.93	XPAR
12-Feb-25	92,000	22.1591	2,038,637.20	XPAR
13-Feb-25	300	22.7473	6,824.19	XPAR
14-Feb-25	4,206	23.1486	97,363.01	XPAR
Total for Period	287,561	21.9758	6,319,388.73

Following the share buybacks detailed above, the Company holds in total 15,898,511 treasury shares, which represents approximately 1.7% 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

• C3315C -- Feb 17 2025 -- Disclosure of transactions in Own Shares PR_FINAL FOR PUBLICATION

FAQ

How many shares did STM repurchase between Feb 10-14, 2025?

STMicroelectronics repurchased 287,561 ordinary shares during this period, representing 0.03% of its issued share capital.

What was the average price paid per share in STM's February 2025 buyback?

The weighted average purchase price was EUR 21.9758 per share.

What is the total value of STM's February 10-14, 2025 share repurchases?

The total value of the share repurchases was EUR 6,319,388.73.

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

Following these buybacks, STM holds 15,898,511 treasury shares, approximately 1.7% of its issued share capital.

What is the purpose of STM's February 2025 share repurchase program?

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