STMicroelectronics (NYSE:STM) Trading 6.9% Higher – Should You Buy?

STMicroelectronics N.V. (NYSE:STM)’s stock price shot up 6.9% on Thursday . The stock traded as high as $78.54 and last traded at $78.3980. Approximately 17,532,922 shares traded hands during trading, an increase of 69% from the average session volume of 10,349,636 shares. The stock had previously closed at $73.36.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on STM. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of STMicroelectronics in a report on Thursday, June 11th. Craig Hallum raised STMicroelectronics from a “hold” rating to a “buy” rating and set a $58.00 price objective for the company in a report on Thursday, April 23rd. UBS Group set a $100.00 price objective on STMicroelectronics in a research note on Wednesday, June 10th. Morgan Stanley restated an “overweight” rating on shares of STMicroelectronics in a research note on Thursday, May 28th. Finally, Weiss Ratings raised shares of STMicroelectronics from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, May 26th. Eleven analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, STMicroelectronics presently has a consensus rating of “Moderate Buy” and a consensus target price of $64.39.

STMicroelectronics Stock Performance

The company has a debt-to-equity ratio of 0.12, a current ratio of 3.31 and a quick ratio of 2.34. The company has a fifty day moving average price of $59.65 and a two-hundred day moving average price of $40.38. The firm has a market cap of $70.41 billion, a price-to-earnings ratio of 490.02 and a beta of 1.94.

STMicroelectronics (NYSE:STM) last released its earnings results on Saturday, March 28th. The semiconductor producer reported $0.13 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%. As a group, equities research analysts expect that STMicroelectronics N.V. will post 1.17 EPS for the current year.

STMicroelectronics Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 22nd will be paid a dividend of $0.09 per share. The ex-dividend date of this dividend is Tuesday, September 22nd. This represents a $0.36 dividend on an annualized basis and a yield of 0.5%. STMicroelectronics’s dividend payout ratio is currently 193.75%.

Institutional Trading of STMicroelectronics

Hedge funds and other institutional investors have recently modified their holdings of the business. Empowered Funds LLC grew its stake in STMicroelectronics by 5.6% during the 1st quarter. Empowered Funds LLC now owns 26,157 shares of the semiconductor producer’s stock valued at $904,000 after acquiring an additional 1,394 shares in the last quarter. Militia Capital Management LLC acquired a new position in shares of STMicroelectronics during the 1st quarter worth $3,455,000. Parallel Advisors LLC raised its holdings in STMicroelectronics by 47.5% during the first quarter. Parallel Advisors LLC now owns 7,454 shares of the semiconductor producer’s stock valued at $258,000 after buying an additional 2,399 shares in the last quarter. EverSource Wealth Advisors LLC raised its stake in shares of STMicroelectronics by 82.3% in the 1st quarter. EverSource Wealth Advisors LLC now owns 5,293 shares of the semiconductor producer’s stock valued at $183,000 after acquiring an additional 2,390 shares in the last quarter. Finally, The Manufacturers Life Insurance Company acquired a new stake in shares of STMicroelectronics in the first quarter worth $19,132,000. Institutional investors and hedge funds 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.