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

Shares of STMicroelectronics (NYSE:STM) gapped up before the market opened on Tuesday . The stock had previously closed at $26.86, but opened at $27.40. STMicroelectronics shares last traded at $27.37, with a volume of 891,454 shares.

Analyst Ratings Changes

Several equities research analysts have issued reports on STM shares. StockNews.com downgraded STMicroelectronics from a “buy” rating to a “hold” rating in a report on Thursday, September 19th. Robert W. Baird reduced their target price on shares of STMicroelectronics from $35.00 to $30.00 and set a “neutral” rating for the company in a report on Friday, November 1st. Susquehanna cut their price objective on shares of STMicroelectronics from $35.00 to $33.00 and set a “positive” rating for the company in a research report on Friday, November 1st. Morgan Stanley lowered STMicroelectronics from an “equal weight” rating to an “underweight” rating in a research note on Monday, November 4th. Finally, Craig Hallum reduced their price target on STMicroelectronics from $42.00 to $36.00 and set a “buy” rating for the company in a research note on Thursday, October 31st. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, STMicroelectronics presently has a consensus rating of “Moderate Buy” and an average target price of $37.63.

STMicroelectronics Stock Down 4.7 %

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 company has a market capitalization of $23.38 billion, a price-to-earnings ratio of 10.65, a PEG ratio of 3.30 and a beta of 1.57. The firm’s 50-day moving average price is $27.96 and its 200 day moving average price is $34.58.

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

STMicroelectronics Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 27th. Stockholders of record on Tuesday, December 17th will be issued a $0.09 dividend. The ex-dividend date of this dividend is Tuesday, December 17th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 1.39%. STMicroelectronics’s dividend payout ratio (DPR) is currently 12.76%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Allspring Global Investments Holdings LLC bought a new stake in STMicroelectronics during the 1st quarter worth $113,000. Mirae Asset Global Investments Co. Ltd. bought a new position in STMicroelectronics in the 1st quarter valued at approximately $554,000. Envestnet Portfolio Solutions Inc. boosted its position in STMicroelectronics by 27.3% during the 1st quarter. Envestnet Portfolio Solutions Inc. now owns 8,403 shares of the semiconductor producer’s stock worth $363,000 after buying an additional 1,802 shares during the period. Empowered Funds LLC acquired a new stake in STMicroelectronics during the 1st quarter worth approximately $579,000. Finally, Sei Investments Co. increased its position in STMicroelectronics by 26.7% in the 1st quarter. Sei Investments Co. now owns 27,838 shares of the semiconductor producer’s stock valued at $1,204,000 after acquiring an additional 5,859 shares during the period. 5.05% of the stock is currently owned by institutional investors and hedge funds.

About STMicroelectronics

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.