STMicroelectronics (NYSE:STM) Shares Gap Up After Analyst Upgrade

STMicroelectronics N.V. (NYSE:STM) shares gapped up prior to trading on Thursday after Craig Hallum upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $44.86, but opened at $48.13. Craig Hallum now has a $58.00 price target on the stock. STMicroelectronics shares last traded at $49.4060, with a volume of 6,165,099 shares changing hands.

Several other research firms also recently issued reports on STM. Susquehanna raised their price target on shares of STMicroelectronics from $35.00 to $40.00 and gave the company a “positive” rating in a research note on Monday, February 23rd. Weiss Ratings lowered shares of STMicroelectronics from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, March 6th. Morgan Stanley upgraded shares of STMicroelectronics from an “equal weight” rating to an “overweight” rating in a research note on Thursday, March 26th. Finally, Mizuho set a $48.00 price target on shares of STMicroelectronics and gave the stock an “outperform” rating in a report on Thursday, April 16th. Nine research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $39.07.

STMicroelectronics News Roundup

Here are the key news stories impacting STMicroelectronics this week:

• Positive Sentiment: Craig Hallum upgraded STM from “hold” to “buy” and set a $58 price target, signaling increased analyst conviction and providing fresh buy-side coverage that can boost demand. Craig Hallum upgrade (Finviz)
• Positive Sentiment: Company gave Q2 revenue guidance with a mid-point (~$3.45B) above consensus (~$3.2B) and improved gross-margin outlook, which supports upward revision risk to near-term earnings expectations. STMicroelectronics Q1 press release / guidance
• Positive Sentiment: WSJ reports STM is seeing strong AI-driven demand and its revenue climbed ~23% year-over-year, highlighting end-market momentum (personal electronics, communications, computers and infrastructure) that supports longer-term growth expectations. Apple Supplier STMicroelectronics Logs Higher Sales on Strong AI Demand (WSJ)
• Positive Sentiment: ST will host an investor webcast (May 4) on the “LEO opportunity” led by the head of MCUs, digital ICs and RF — signaling management is highlighting a new addressable market (satcom/LEO-related RF and controllers) that could drive incremental growth and investor interest. STMicroelectronics to host investor call on the LEO opportunity
• Neutral Sentiment: Earnings call transcript is available for investors wanting detail; it contains management commentary that will matter for guidance credibility and margin drivers but is informational rather than a direct catalyst. STM Q1 2026 Earnings Call Transcript (Seeking Alpha)
• Neutral Sentiment: Some outlets (e.g., Reuters) framed Q1 results as “above expectations” — the mixed reporting reflects differences in GAAP vs. non-GAAP presentation and which metrics analysts emphasize, so market reaction can hinge on which narrative traders choose. Q1 call coverage / Reuters summary
• Negative Sentiment: GAAP Q1 EPS of $0.13 missed consensus ($0.22) and net margin/operating income remain modest on a GAAP basis (U.S. GAAP operating income $70M), which underscores near-term profitability pressure and explains some investor caution. STMicroelectronics Q1 results / MarketBeat

Institutional Investors Weigh In On STMicroelectronics

Several hedge funds and other institutional investors have recently modified their holdings of the business. Morgan Stanley boosted its holdings in shares of 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 purchasing an additional 1,778,113 shares during the period. Marshall Wace LLP acquired a new position in STMicroelectronics in the 4th quarter worth approximately $42,731,000. Invesco Ltd. lifted its holdings in STMicroelectronics by 67.1% in the third quarter. Invesco Ltd. now owns 4,003,933 shares of the semiconductor producer’s stock valued at $113,151,000 after acquiring an additional 1,608,029 shares during the period. Defiance ETFs LLC purchased a new position in shares of STMicroelectronics during the 4th quarter valued at approximately $39,545,000. Finally, Two Sigma Investments LP boosted its holdings in STMicroelectronics by 135.0% during the third quarter. Two Sigma Investments LP now owns 2,322,540 shares of the semiconductor producer’s stock worth $65,635,000 after buying an additional 1,334,192 shares in the last quarter. 5.05% of the stock is currently owned by hedge funds and other institutional investors.

STMicroelectronics Trading Up 9.7%

The company’s 50-day moving average is $35.19 and its 200 day moving average is $29.60. The company has a market cap of $44.20 billion, a price-to-earnings ratio of 273.52 and a beta of 1.51. The company has a quick ratio of 2.43, a current ratio of 3.36 and a debt-to-equity ratio of 0.10.

STMicroelectronics (NYSE:STM) last posted its quarterly earnings data on Thursday, April 23rd. The semiconductor producer reported $0.13 EPS for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.09). The business had revenue of $3.10 billion during the quarter, compared to analysts’ expectations of $3.11 billion. STMicroelectronics had a net margin of 1.41% and a return on equity of 2.70%. Research analysts predict that STMicroelectronics N.V. will post 1.11 EPS for the current year.

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.