STMicroelectronics (NYSE:STM) Shares Gap Down – Should You Sell?

Shares of STMicroelectronics (NYSE:STM) gapped down before the market opened on Thursday . The stock had previously closed at $24.59, but opened at $24.02. STMicroelectronics shares last traded at $24.17, with a volume of 456,943 shares.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. JPMorgan Chase & Co. reiterated a “neutral” rating on shares of STMicroelectronics in a research note on Monday, December 9th. Jefferies Financial Group raised shares of STMicroelectronics from a “hold” rating to a “buy” rating in a research report on Wednesday, February 19th. Sanford C. Bernstein downgraded STMicroelectronics from an “outperform” rating to a “market perform” rating and reduced their target price for the stock from $33.00 to $26.00 in a research note on Wednesday, February 5th. BNP Paribas started coverage on STMicroelectronics in a research note on Tuesday, December 3rd. They issued a “neutral” rating and a $28.00 price target on the stock. Finally, Barclays downgraded STMicroelectronics from an “equal weight” rating to an “underweight” rating in a report on Wednesday, January 22nd. One analyst has rated the stock with a sell rating, ten have given a hold rating, four have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, STMicroelectronics presently has an average rating of “Hold” and a consensus price target of $31.26.

STMicroelectronics Stock Performance

The company has a market cap of $21.69 billion, a P/E ratio of 14.48, a PEG ratio of 1.16 and a beta of 1.56. The stock’s 50-day moving average price is $24.74 and its 200-day moving average price is $26.40. 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 earnings results on Thursday, January 30th. The semiconductor producer reported $0.37 earnings per share (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%. Equities analysts anticipate that STMicroelectronics will post 0.85 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of STM. Truvestments Capital LLC bought a new position in STMicroelectronics in the 3rd quarter valued at about $25,000. Archer Investment Corp bought a new position in STMicroelectronics in the third quarter valued at approximately $30,000. GAMMA Investing LLC raised its position in STMicroelectronics by 81.4% during the fourth quarter. GAMMA Investing LLC now owns 1,183 shares of the semiconductor producer’s stock valued at $30,000 after purchasing an additional 531 shares in the last quarter. Newbridge Financial Services Group Inc. bought a new stake in STMicroelectronics during the fourth quarter worth $31,000. Finally, Smartleaf Asset Management LLC lifted its stake in STMicroelectronics by 225.7% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,329 shares of the semiconductor producer’s stock worth $33,000 after purchasing an additional 921 shares during the last quarter. Institutional investors own 5.05% of the company’s stock.

About STMicroelectronics

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.