STMicroelectronics Announces Status of Common Share Repurchase Program
Rhea-AI Summary
STMicroelectronics (STM) has reported the latest status of its common share repurchase program for the period from February 17-21, 2025. The company repurchased 2,500 ordinary shares, representing 0.0003% of its issued share capital, at a weighted average price of EUR 24.6355 per share, totaling EUR 61,588.85.
The buyback program, approved by shareholders on May 22, 2024, and the supervisory board, aims to meet obligations from share option programmes and allocations to employees or management. Following these transactions, STMicroelectronics now holds 15,901,011 treasury shares, approximately 1.7% of its issued share capital. The shares may be used for employee programs or other lawful purposes under Market Abuse Regulation article 5(2).
Positive
- Strategic share repurchase program demonstrates commitment to employee compensation and retention
- Modest buyback amount (2,500 shares) indicates careful capital management
- Strong treasury position with 15.9M shares (1.7% of issued capital) provides flexibility for future needs
Negative
- Small buyback size (0.0003% of issued capital) suggests immediate impact on shareholder value
Insights
The latest share repurchase disclosure from STMicroelectronics reveals several noteworthy aspects about the company's capital management strategy. The relatively modest purchase of 2,500 shares (EUR 61,588.85) suggests a carefully measured approach to capital allocation, particularly notable in the current semiconductor market environment where cash preservation and strategic investments are crucial.
The company's total treasury position of 1.7% of issued share capital is notably conservative compared to many semiconductor peers who often maintain higher treasury share positions for greater flexibility. This conservative approach could indicate STM's prioritization of maintaining liquidity for potential strategic investments or R&D initiatives, which are vital in the highly competitive semiconductor sector.
The specific designation of these shares for employee and management compensation programs is particularly strategic in the current market context. The semiconductor industry faces intense competition for top talent, and equity-based compensation remains a important tool for retention and alignment of interests. The company's decision to maintain a steady stream of small, regular purchases rather than larger bulk acquisitions demonstrates a methodical approach to managing dilution from employee stock programs while minimizing market impact.
The execution under Market Abuse Regulation (MAR) compliance framework provides additional assurance to investors about the integrity of the buyback process. The weighted average purchase price of EUR 24.6355 and the transparent disclosure of transaction details align with best practices in corporate governance, which is increasingly important for institutional investors.
While this particular buyback is relatively small in scale, it represents a continuation of STM's disciplined capital return policy. The flexibility retained in the program's terms - allowing for shares to be used for "any other lawful purpose" - provides the company with strategic optionality, which could be valuable given the semiconductor industry's cyclical nature and potential need for swift strategic responses to market changes.
STMicroelectronics Announces Status of
Common Share Repurchase Program
Disclosure of Transactions in Own Shares – Period from Feb 17, 2025 to Feb 21, 2025
AMSTERDAM – February 24, 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 17, 2025 to Feb 21, 2025 (the “Period”), of 2,500 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 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) |
| 17/02/2025 | 500 | 23.3472 | 11,673.60 | XPAR |
| 18/02/2025 | 500 | 23.1404 | 11,570.20 | XPAR |
| 19/02/2025 | 500 | 23.9930 | 11,996.50 | XPAR |
| 20/02/2025 | 500 | 25.7288 | 12,864.40 | XPAR |
| 21/02/2025 | 500 | 26.9683 | 13,484.15 | XPAR |
| Total for Period | 2,500 | 24.6355 | 61,588.85 |
Following the share buybacks detailed above, the Company holds in total 15,901,011 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:
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
Attachment
FAQ
How many shares did STM repurchase between February 17-21, 2025?
What was the average purchase price for STM's share buyback in February 2025?
What is the purpose of STM's share repurchase program?
How many treasury shares does STM hold after the February 2025 buyback?
When was STM's share repurchase program approved?
