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

STMicroelectronics (NYSE:STM)’s share price gapped up prior to trading 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 traded.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Barclays lowered shares of STMicroelectronics from an “equal weight” rating to an “underweight” rating in a research note on Wednesday, January 22nd. JPMorgan Chase & Co. reiterated a “neutral” rating on shares of STMicroelectronics in a research note on Monday, December 9th. Jefferies Financial Group upgraded shares of STMicroelectronics from a “hold” rating to a “buy” rating in a research note on Wednesday. BNP Paribas started coverage on shares of STMicroelectronics in a research note on Tuesday, December 3rd. They set a “neutral” rating and a $28.00 price objective for the company. Finally, Susquehanna reduced their price objective on shares of STMicroelectronics from $33.00 to $28.00 and set a “positive” rating for the company in a research note on Friday, January 31st. One equities research analyst has rated the stock with a sell rating, ten have given a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $31.26.

STMicroelectronics Price Performance

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

STMicroelectronics (NYSE:STM) last announced its quarterly earnings results on Thursday, January 30th. The semiconductor producer reported $0.37 EPS for the quarter, topping 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%. Sell-side analysts forecast that STMicroelectronics will post 0.82 EPS for the current year.

STMicroelectronics Announces Dividend

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

Hedge Funds Weigh In On STMicroelectronics

Institutional investors and hedge funds have recently made changes to their positions in the business. Truvestments Capital LLC purchased a new position in shares of STMicroelectronics in the third quarter worth approximately $25,000. Archer Investment Corp purchased a new position in shares of STMicroelectronics in the third quarter worth approximately $30,000. GAMMA Investing LLC boosted its holdings 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 worth $30,000 after buying an additional 531 shares during the last quarter. Newbridge Financial Services Group Inc. purchased a new position in shares of STMicroelectronics in the fourth quarter worth approximately $31,000. Finally, Smartleaf Asset Management LLC boosted its holdings 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 worth $33,000 after buying an additional 921 shares during the last quarter. 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.