STMicroelectronics (NYSE:STM) Trading Down 4.7% – Here’s Why

Shares of STMicroelectronics N.V. (NYSE:STM) dropped 4.7% on Friday . The stock traded as low as $70.69 and last traded at $71.3740. 9,817,675 shares traded hands during mid-day trading, a decline of 5% from the average session volume of 10,358,528 shares. The stock had previously closed at $74.88.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on STM. Bank of America raised STMicroelectronics from a “neutral” rating to a “buy” rating and set a $100.00 target price for the company in a research report on Wednesday, June 10th. Citigroup restated a “buy” rating on shares of STMicroelectronics in a report on Sunday, April 26th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of STMicroelectronics in a research note on Thursday, June 11th. UBS Group set a $100.00 target price on shares of STMicroelectronics in a research report on Wednesday, June 10th. Finally, Weiss Ratings upgraded shares of STMicroelectronics from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Tuesday, May 26th. Eleven research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, STMicroelectronics currently has a consensus rating of “Moderate Buy” and a consensus target price of $64.39.

STMicroelectronics Price Performance

The firm has a market capitalization of $64.11 billion, a PE ratio of 446.12 and a beta of 1.94. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.34 and a current ratio of 3.31. The business’s 50 day moving average is $64.70 and its two-hundred day moving average is $42.74.

STMicroelectronics (NYSE:STM) last issued its earnings results on Saturday, March 28th. The semiconductor producer reported $0.13 earnings per share (EPS) for the quarter. The business had revenue of $3.10 billion for the quarter. STMicroelectronics had a net margin of 1.19% and a return on equity of 3.01%. Equities research analysts anticipate that STMicroelectronics N.V. will post 1.17 earnings per share for the current fiscal year.

Institutional Trading of STMicroelectronics

Institutional investors have recently added to or reduced their stakes in the stock. Morgan Stanley boosted its stake in STMicroelectronics by 40.6% in the 4th quarter. Morgan Stanley now owns 6,156,161 shares of the semiconductor producer’s stock worth $159,691,000 after purchasing an additional 1,778,113 shares during the period. Marshall Wace LLP bought a new stake in shares of STMicroelectronics during the fourth quarter valued at about $42,731,000. Invesco Ltd. lifted its holdings in shares of STMicroelectronics by 67.1% in the third quarter. Invesco Ltd. now owns 4,003,933 shares of the semiconductor producer’s stock worth $113,151,000 after buying an additional 1,608,029 shares in the last quarter. Defiance ETFs LLC bought a new position in shares of STMicroelectronics in the fourth quarter valued at approximately $39,545,000. Finally, Two Sigma Investments LP grew its stake in STMicroelectronics by 135.0% during the third quarter. Two Sigma Investments LP now owns 2,322,540 shares of the semiconductor producer’s stock valued at $65,635,000 after acquiring an additional 1,334,192 shares in the last quarter. Hedge funds and other institutional investors own 5.05% of the company’s stock.

About STMicroelectronics

STMicroelectronics is a global semiconductor company headquartered in Geneva, Switzerland, formed through the 1987 merger of SGS Microelettronica and Thomson Semiconducteurs. The company designs, develops and manufactures a broad range of semiconductor products and solutions that serve multiple end markets worldwide. ST’s offerings span from basic components to integrated systems, emphasizing energy-efficient and high-performance devices for modern electronics.

Product categories include microcontrollers (notably the widely used STM32 family), analog and mixed-signal ICs, power MOSFETs and power-management devices, MEMS and sensors, image sensors, and discrete semiconductors.