STMicroelectronics (NYSE:STM) Shares Gap Up – Should You Buy?

STMicroelectronics (NYSE:STM) gapped up prior to trading on Monday . The stock had previously closed at $24.41, but opened at $25.66. STMicroelectronics shares last traded at $26.11, with a volume of 1,108,665 shares changing hands.

Wall Street Analyst Weigh In

STM has been the subject of a number of research reports. Susquehanna reissued a “positive” rating and issued a $33.00 price target on shares of STMicroelectronics in a research report on Thursday, November 21st. Robert W. Baird reduced their target price on STMicroelectronics from $35.00 to $30.00 and set a “neutral” rating for the company in a report on Friday, November 1st. JPMorgan Chase & Co. restated a “neutral” rating on shares of STMicroelectronics in a research note on Monday, December 9th. BNP Paribas started coverage on STMicroelectronics in a research note on Tuesday, December 3rd. They issued a “neutral” rating and a $28.00 price objective for the company. Finally, StockNews.com downgraded STMicroelectronics from a “buy” rating to a “hold” rating in a report on Thursday, September 19th. One research analyst has rated the stock with a sell rating, six have given a hold rating, six have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, STMicroelectronics has an average rating of “Moderate Buy” and an average target price of $36.26.

STMicroelectronics Price Performance

The company has a current ratio of 2.84, a quick ratio of 2.16 and a debt-to-equity ratio of 0.12. The stock has a fifty day simple moving average of $25.75 and a two-hundred day simple moving average of $30.02. The company has a market cap of $22.83 billion, a PE ratio of 10.40, a price-to-earnings-growth ratio of 3.20 and a beta of 1.52.

STMicroelectronics (NYSE:STM) last released its earnings results on Thursday, October 31st. The semiconductor producer reported $0.37 EPS for the quarter, beating analysts’ consensus estimates of $0.33 by $0.04. STMicroelectronics had a return on equity of 13.29% and a net margin of 16.11%. The company had revenue of $3.25 billion during the quarter, compared to the consensus estimate of $3.27 billion. During the same quarter last year, the company earned $1.16 earnings per share. STMicroelectronics’s quarterly revenue was down 26.6% compared to the same quarter last year. On average, equities analysts predict that STMicroelectronics will post 1.64 EPS for the current fiscal year.

STMicroelectronics Dividend Announcement

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 given a dividend of $0.09 per share. 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 1.42%. STMicroelectronics’s payout ratio is 14.81%.

Institutional Trading of STMicroelectronics

A number of institutional investors have recently bought and sold shares of STM. Aigen Investment Management LP acquired a new stake in shares of STMicroelectronics in the third quarter valued at approximately $1,157,000. Point72 Asset Management L.P. acquired a new stake in STMicroelectronics during the 3rd quarter valued at $1,924,000. Washington Capital Management Inc. purchased a new position in STMicroelectronics during the third quarter worth $1,112,000. Point72 Hong Kong Ltd acquired a new position in shares of STMicroelectronics in the third quarter worth $1,424,000. Finally, American Century Companies Inc. raised its holdings in shares of STMicroelectronics by 6.5% in the second quarter. American Century Companies Inc. now owns 469,669 shares of the semiconductor producer’s stock worth $18,449,000 after acquiring an additional 28,846 shares during the last quarter. 5.05% of the stock is currently owned by hedge funds and other institutional investors.

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.