STMicroelectronics Shares Buyback Program Insights and Analysis
Overview of the Share Repurchase Program
STMicroelectronics N.V., a global leader in semiconductor technology, has recently provided insights into its common share repurchase program. This initiative aims to enhance shareholder value and demonstrate the company's commitment to returning capital to its investors.
Details of the Recent Transactions
The repurchase program, disclosed on June 21, 2024, following approval from a shareholder resolution, allowed STMicroelectronics to buy back shares on the regulated market of Euronext Paris. The total number of shares purchased during the specified period spanned February 17 to February 21, 2025, totaling 2,500 ordinary shares, indicating a strategic approach to optimize capital structure.
Understanding the Purpose
The primary goal of these transactions aligns with article 5(2) of Regulation (EU) 596/2014, commonly known as the Market Abuse Regulation. This regulation ensures that repurchases help fulfill obligations tied to employee share options and similar allocations. Holding the shares in treasury allows the company flexibility in fulfilling these commitments without affecting market dynamics excessively.
Transaction Summary
Throughout the five-day period, STMicroelectronics executed several transactions that showcased varying purchase prices and overall investment amounts. Here’s a brief recap:
- Date: February 17, 2025, Shares Purchased: 500, Price Per Share: €23.3472, Total Paid: €11,673.60
- Date: February 18, 2025, Shares Purchased: 500, Price Per Share: €23.1404, Total Paid: €11,570.20
- Date: February 19, 2025, Shares Purchased: 500, Price Per Share: €23.9930, Total Paid: €11,996.50
- Date: February 20, 2025, Shares Purchased: 500, Price Per Share: €25.7288, Total Paid: €12,864.40
- Date: February 21, 2025, Shares Purchased: 500, Price Per Share: €26.9683, Total Paid: €13,484.15
In total, the weighted average price paid for the shares was approximately €24.6355, summing up to an overall expenditure of €61,588.85 during this timeframe.
Impacts on Shareholding Structure
As a result of these buyback transactions, STMicroelectronics now possesses a total of 15,901,011 treasury shares, representing about 1.7% of its issued share capital. This strategy not only aids in maintaining the company’s return on equity but also enriches the remaining shareholders’ ownership stake.
Regulatory Compliance and Disclosure
The company remains steadfast in adhering to the Market Abuse Regulation, providing transparency regarding individual trades from the repurchase program. Such disclosures are essential for maintaining investor trust and fostering a healthy market environment.
About STMicroelectronics
With a workforce of over 50,000 individuals, STMicroelectronics actively develops semiconductor technologies that cater to a wide range of electronic applications. The company is committed to sustainability and aims to achieve carbon neutrality by 2027, enhancing its role as a major player in the semiconductor industry.
For any inquiries or further information, investors and media representatives can reach out to:
Investor Relations:
Jérôme Ramel
EVP Corporate Development
Tel: +41.22.929.59.20
Email: jerome.ramel@st.com
Media Relations:
Alexis Breton
Corporate External Communications
Tel: +33.6.59.16.79.08
Email: alexis.breton@st.com
Frequently Asked Questions
What is the purpose of the share repurchase program?
The share repurchase program helps fulfill obligations related to employee share options and enhances shareholder value.
How many shares were repurchased?
A total of 2,500 ordinary shares were repurchased during the specified period.
What was the average purchase price for the shares?
The weighted average price paid for the repurchased shares was approximately €24.6355.
How many treasury shares does STMicroelectronics now hold?
As of the latest transactions, STMicroelectronics holds a total of 15,901,011 treasury shares.
What is STMicroelectronics' commitment towards sustainability?
The company has committed to achieving carbon neutrality by 2027, focusing on reducing its environmental impact while innovating in semiconductor technology.
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