STMicroelectronics (NYSE:STM) Shares Gap Up – Here’s Why

STMicroelectronics (NYSE:STM)’s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $24.41, but opened at $25.58. STMicroelectronics shares last traded at $25.81, with a volume of 1,536,238 shares changing hands.

Wall Street Analyst Weigh In

STM has been the topic of several analyst reports. Jefferies Financial Group raised shares of STMicroelectronics from a “hold” rating to a “buy” rating in a report on Wednesday. Morgan Stanley raised shares of STMicroelectronics from an “underweight” rating to an “equal weight” rating in a report on Thursday, February 13th. Bank of America downgraded shares of STMicroelectronics from a “buy” rating to a “neutral” rating in a report on Thursday, February 6th. TD Cowen downgraded shares of STMicroelectronics from a “buy” rating to a “hold” rating and lowered their price target for the company from $32.00 to $25.00 in a report on Monday, January 13th. Finally, Robert W. Baird lowered their price target on shares of STMicroelectronics from $35.00 to $30.00 and set a “neutral” rating on the stock in a report on Friday, November 1st. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $31.26.

STMicroelectronics Trading Down 2.3 %

The company has a market cap of $24.91 billion, a PE ratio of 16.61, a P/E/G ratio of 1.13 and a beta of 1.51. The stock’s 50 day moving average is $24.67 and its 200-day moving average is $26.87. The company has a quick ratio of 2.37, a current ratio of 3.11 and a debt-to-equity ratio of 0.11.

STMicroelectronics (NYSE:STM) last released its quarterly earnings results on Thursday, January 30th. The semiconductor producer reported $0.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.35 by $0.02. STMicroelectronics had a net margin of 11.74% and a return on equity of 8.92%. As a group, sell-side analysts anticipate that STMicroelectronics will post 0.82 EPS for the current year.

STMicroelectronics Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, April 1st. Investors of record on Tuesday, March 25th will be paid a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a yield of 1.31%. The ex-dividend date of this dividend is Tuesday, March 25th. STMicroelectronics’s payout ratio is 18.67%.

Institutional Investors Weigh In On STMicroelectronics

Hedge funds have recently bought and sold shares of the business. Truvestments Capital LLC purchased a new stake in shares of STMicroelectronics in the third quarter valued at $25,000. Archer Investment Corp purchased a new stake in shares of STMicroelectronics in the third quarter valued at $30,000. GAMMA Investing LLC raised its stake in shares of STMicroelectronics by 81.4% in the fourth quarter. GAMMA Investing LLC now owns 1,183 shares of the semiconductor producer’s stock valued at $30,000 after acquiring an additional 531 shares during the period. Newbridge Financial Services Group Inc. purchased a new stake in shares of STMicroelectronics in the fourth quarter valued at $31,000. Finally, Smartleaf Asset Management LLC raised its stake in shares of STMicroelectronics by 225.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,329 shares of the semiconductor producer’s stock valued at $33,000 after acquiring an additional 921 shares during the period. Hedge funds and other institutional investors own 5.05% of the company’s stock.

STMicroelectronics Company Profile

STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments.