STMicroelectronics (NYSE:STM) Shares Gap Down – Here’s Why

STMicroelectronics (NYSE:STM)’s share price gapped down prior to trading on Monday . The stock had previously closed at $26.29, but opened at $25.45. STMicroelectronics shares last traded at $25.35, with a volume of 744,993 shares traded.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. Morgan Stanley lowered shares of STMicroelectronics from an “equal weight” rating to an “underweight” rating in a research note on Monday, November 4th. Craig Hallum reduced their price objective on STMicroelectronics from $42.00 to $36.00 and set a “buy” rating for the company in a report on Thursday, October 31st. Citigroup raised shares of STMicroelectronics to a “strong-buy” rating in a report on Thursday, October 10th. Susquehanna reissued a “positive” rating and set a $33.00 price objective on shares of STMicroelectronics in a report on Thursday, November 21st. Finally, StockNews.com downgraded STMicroelectronics from a “buy” rating to a “hold” rating in a research note on Thursday, September 19th. One analyst has rated the stock with a sell rating, six have assigned a hold rating, six have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $36.26.

STMicroelectronics Stock Up 0.8 %

The company has a market cap of $23.37 billion, a PE ratio of 10.64, a P/E/G ratio of 3.20 and a beta of 1.53. The business has a 50-day simple moving average of $26.56 and a 200-day simple moving average of $31.93. The company has a quick ratio of 2.16, a current ratio of 2.84 and a debt-to-equity ratio of 0.12.

STMicroelectronics (NYSE:STM) last released its quarterly earnings results on Thursday, October 31st. The semiconductor producer reported $0.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.33 by $0.04. The firm had revenue of $3.25 billion for the quarter, compared to analysts’ expectations of $3.27 billion. STMicroelectronics had a net margin of 16.11% and a return on equity of 13.29%. The firm’s revenue for the quarter was down 26.6% compared to the same quarter last year. During the same quarter last year, the company earned $1.16 EPS. Equities research analysts anticipate that STMicroelectronics will post 1.64 EPS for the current year.

STMicroelectronics Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 1st. Investors of record on Tuesday, March 25th will be paid a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a yield of 1.39%. The ex-dividend date is Tuesday, March 25th. STMicroelectronics’s dividend payout ratio is presently 12.35%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in STM. Truvestments Capital LLC purchased a new position in STMicroelectronics during the third quarter worth approximately $25,000. Archer Investment Corp acquired a new position in shares of STMicroelectronics during the 3rd quarter valued at about $30,000. Waldron Private Wealth LLC purchased a new stake in shares of STMicroelectronics in the third quarter valued at about $34,000. TD Private Client Wealth LLC increased its position in STMicroelectronics by 108.3% during the third quarter. TD Private Client Wealth LLC now owns 1,556 shares of the semiconductor producer’s stock worth $46,000 after purchasing an additional 809 shares during the last quarter. Finally, Whittier Trust Co. of Nevada Inc. raised its stake in STMicroelectronics by 144.2% during the second quarter. Whittier Trust Co. of Nevada Inc. now owns 1,243 shares of the semiconductor producer’s stock worth $49,000 after purchasing an additional 734 shares during the period. 5.05% of the stock is 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.