STMicroelectronics (NYSE:STM) Shares Gap Up – Still a Buy?

STMicroelectronics N.V. (NYSE:STM)’s stock price gapped up before the market opened on Monday . The stock had previously closed at $29.85, but opened at $32.00. STMicroelectronics shares last traded at $32.1740, with a volume of 5,432,133 shares traded.

Trending Headlines about STMicroelectronics

Here are the key news stories impacting STMicroelectronics this week:

• Positive Sentiment: Expanded multi‑year, multi‑billion USD strategic engagement with Amazon Web Services to supply advanced chips for high‑performance compute and AI data centers — main catalyst for the rally. STMicroelectronics expands strategic engagement with Amazon Web Services
• Positive Sentiment: Widespread media coverage frames the AWS deal as multibillion‑dollar and market‑moving; reports note the stock jumped on the announcement. STMicroelectronics Stock Nears Buy Point On Amazon Web Services Deal
• Positive Sentiment: Unusually large options activity: investors bought 16,658 call options today (≈+308% vs. average), suggesting bullish speculative or hedged institutional interest that can amplify intraday upside.
• Positive Sentiment: UBS reaffirmed its Buy rating on STM, providing additional analyst support for the shares. UBS Reaffirms Their Buy Rating on STMicroelectronics NV
• Neutral Sentiment: Product/tech update — ST released a space‑grade driver product that supports data and low‑voltage logic, a niche win but not an immediate revenue catalyst. STMicroelectronics’ space-grade driver supports data and low-voltage logic
• Neutral Sentiment: Broad market coverage (Benzinga) mentioned STM as a name in focus amid mixed futures; helps visibility but is background rather than a direct driver. Stock Market Today: Dow Jones Futures Drop After Friday’s Record Close—STMicroelectronics, Kroger, FedEx In Focus
• Negative Sentiment: Recent quarterly results (Jan. 29) showed an EPS miss — $0.11 vs. $0.27 expected — even though revenue was roughly in line; combined with a high P/E (~181) this raises the risk of profit‑taking if the AWS deal fails to translate into visible near‑term revenue/earnings gains.

Analysts Set New Price Targets

Several equities analysts recently issued reports on STM shares. TD Cowen reissued a “hold” rating on shares of STMicroelectronics in a research note on Friday, October 24th. Susquehanna raised their price objective on shares of STMicroelectronics from $35.00 to $40.00 and gave the company a “positive” rating in a research note on Wednesday, October 22nd. Robert W. Baird set a $45.00 target price on shares of STMicroelectronics in a report on Friday, October 24th. Weiss Ratings restated a “sell (d+)” rating on shares of STMicroelectronics in a research note on Wednesday, January 21st. Finally, Mizuho set a $28.00 price objective on STMicroelectronics in a research note on Friday, January 9th. Seven analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $31.93.

STMicroelectronics Trading Up 9.0%

The company has a quick ratio of 2.43, a current ratio of 3.36 and a debt-to-equity ratio of 0.10. The stock has a market capitalization of $29.23 billion, a PE ratio of 180.79 and a beta of 1.59. The business’s 50-day moving average is $27.21 and its two-hundred day moving average is $26.49.

STMicroelectronics (NYSE:STM) last announced its earnings results on Thursday, January 29th. The semiconductor producer reported $0.11 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.27 by ($0.16). The firm had revenue of $3.33 billion during the quarter, compared to analyst estimates of $3.29 billion. STMicroelectronics had a net margin of 1.41% and a return on equity of 2.70%. On average, analysts anticipate that STMicroelectronics N.V. will post 0.85 earnings per share for the current fiscal year.

Hedge Funds Weigh In On STMicroelectronics

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Van ECK Associates Corp grew its stake in STMicroelectronics by 11.3% in the 3rd quarter. Van ECK Associates Corp now owns 9,387,002 shares of the semiconductor producer’s stock valued at $265,277,000 after acquiring an additional 955,243 shares during the last quarter. Bank of America Corp DE increased its stake in shares of STMicroelectronics by 43.9% during the 2nd quarter. Bank of America Corp DE now owns 4,348,569 shares of the semiconductor producer’s stock worth $132,240,000 after purchasing an additional 1,326,020 shares in the last quarter. Invesco Ltd. raised its position in shares of STMicroelectronics by 67.1% during the 3rd quarter. Invesco Ltd. now owns 4,003,933 shares of the semiconductor producer’s stock worth $113,151,000 after purchasing an additional 1,608,029 shares during the last quarter. JPMorgan Chase & Co. lifted its stake in STMicroelectronics by 19.1% in the 3rd quarter. JPMorgan Chase & Co. now owns 3,990,874 shares of the semiconductor producer’s stock valued at $112,782,000 after buying an additional 641,327 shares in the last quarter. Finally, Rafferty Asset Management LLC grew its holdings in STMicroelectronics by 50.7% during the 2nd quarter. Rafferty Asset Management LLC now owns 3,020,721 shares of the semiconductor producer’s stock valued at $91,860,000 after buying an additional 1,016,035 shares during the last quarter. Hedge funds and other institutional investors own 5.05% of the company’s stock.

STMicroelectronics Company Profile

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.