STMicroelectronics (NYSE:STM) Trading Up 5.9% – Should You Buy?

Shares of STMicroelectronics N.V. (NYSE:STM) were up 5.9% on Monday . The company traded as high as $76.66 and last traded at $74.8630. Approximately 13,065,390 shares traded hands during mid-day trading, an increase of 31% from the average daily volume of 9,980,216 shares. The stock had previously closed at $70.72.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on STM shares. Susquehanna lifted their price objective on STMicroelectronics from $35.00 to $40.00 and gave the stock a “positive” rating in a research report on Monday, February 23rd. Morgan Stanley restated an “overweight” rating on shares of STMicroelectronics in a research report on Thursday, May 28th. Weiss Ratings upgraded STMicroelectronics from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, May 26th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of STMicroelectronics in a research report on Friday, May 15th. Finally, Mizuho lifted their price target on STMicroelectronics from $68.00 to $84.00 and gave the company an “outperform” rating in a research report on Wednesday, June 3rd. Eleven analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, STMicroelectronics currently has a consensus rating of “Moderate Buy” and an average price target of $64.39.

STMicroelectronics Stock Down 3.6%

The company has a quick ratio of 2.34, a current ratio of 3.31 and a debt-to-equity ratio of 0.12. The company has a market capitalization of $63.50 billion, a P/E ratio of 441.88 and a beta of 1.94. The company has a 50-day moving average of $54.68 and a two-hundred day moving average of $38.12.

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

STMicroelectronics Announces Dividend

The business 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 is Tuesday, September 22nd. This represents a $0.36 dividend on an annualized basis and a yield of 0.5%. STMicroelectronics’s payout ratio is presently 193.75%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Van ECK Associates Corp raised its stake in STMicroelectronics by 12.2% during the fourth quarter. Van ECK Associates Corp now owns 10,532,428 shares of the semiconductor producer’s stock valued at $273,211,000 after buying an additional 1,145,426 shares during the last quarter. Morgan Stanley raised its stake in STMicroelectronics by 40.6% during the fourth quarter. Morgan Stanley now owns 6,156,161 shares of the semiconductor producer’s stock valued at $159,691,000 after buying an additional 1,778,113 shares during the last quarter. Invesco Ltd. raised its stake in STMicroelectronics by 29.9% during the fourth quarter. Invesco Ltd. now owns 5,199,951 shares of the semiconductor producer’s stock valued at $134,887,000 after buying an additional 1,196,018 shares during the last quarter. Bank of America Corp DE raised its stake in STMicroelectronics by 43.9% during the second quarter. Bank of America Corp DE now owns 4,348,569 shares of the semiconductor producer’s stock valued at $132,240,000 after buying an additional 1,326,020 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its stake in STMicroelectronics by 19.1% during the third 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 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.