STMicroelectronics (NYSE:STM) Shares Down 5.6% – Here’s What Happened

STMicroelectronics N.V. (NYSE:STM)’s share price dropped 5.6% on Tuesday . The stock traded as low as $74.39 and last traded at $74.5390. Approximately 12,623,926 shares were traded during trading, an increase of 23% from the average daily volume of 10,259,685 shares. The stock had previously closed at $78.95.

Analyst Ratings Changes

Several analysts recently weighed in on STM shares. Susquehanna lifted their price objective on STMicroelectronics from $35.00 to $40.00 and gave the company a “positive” rating in a report on Monday, February 23rd. Craig Hallum upgraded shares of STMicroelectronics from a “hold” rating to a “buy” rating and set a $58.00 price target for the company in a report on Thursday, April 23rd. Citigroup reaffirmed a “buy” rating on shares of STMicroelectronics in a research report on Sunday, April 26th. TD Cowen reiterated a “hold” rating on shares of STMicroelectronics in a research note on Friday, April 24th. Finally, Morgan Stanley reissued an “overweight” rating on shares of STMicroelectronics in a report on Thursday, May 28th. Eleven equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $64.39.

STMicroelectronics Price Performance

The company has a market cap of $70.41 billion, a PE ratio of 490.02 and a beta of 1.94. 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 firm has a 50 day simple moving average of $59.65 and a 200-day simple moving average of $40.38.

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 net margin of 1.19% and a return on equity of 3.01%. The business had revenue of $3.10 billion for the quarter. As a group, research analysts predict that STMicroelectronics N.V. will post 1.17 earnings per share for the current fiscal year.

STMicroelectronics Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 22nd will be paid a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 0.5%. The ex-dividend date is Tuesday, September 22nd. STMicroelectronics’s dividend payout ratio (DPR) is 193.75%.

Hedge Funds Weigh In On STMicroelectronics

A number of large investors have recently made changes to their positions in STM. Van ECK Associates Corp grew its stake in STMicroelectronics by 12.2% during the 4th quarter. Van ECK Associates Corp now owns 10,532,428 shares of the semiconductor producer’s stock worth $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% in 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. boosted its holdings in STMicroelectronics by 29.9% in the fourth quarter. Invesco Ltd. now owns 5,199,951 shares of the semiconductor producer’s stock worth $134,887,000 after acquiring an additional 1,196,018 shares in the last quarter. Bank of America Corp DE boosted its holdings in STMicroelectronics by 43.9% in the second quarter. Bank of America Corp DE now owns 4,348,569 shares of the semiconductor producer’s stock worth $132,240,000 after acquiring an additional 1,326,020 shares in the last quarter. Finally, JPMorgan Chase & Co. grew its stake in shares of STMicroelectronics by 19.1% during the third quarter. JPMorgan Chase & Co. now owns 3,990,874 shares of the semiconductor producer’s stock worth $112,782,000 after acquiring an additional 641,327 shares during the last quarter. 5.05% of the stock is owned by institutional investors and hedge funds.

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.