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

STMicroelectronics N.V. (NYSE:STM)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $79.91, but opened at $72.00. STMicroelectronics shares last traded at $73.6240, with a volume of 2,444,136 shares changing hands.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Robert W. Baird set a $90.00 price target on shares of STMicroelectronics in a research note on Friday, April 24th. Susquehanna increased their price objective 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. TD Cowen reiterated a “hold” rating on shares of STMicroelectronics in a research note on Friday, April 24th. Mizuho raised their price objective on shares of STMicroelectronics from $68.00 to $84.00 and gave the stock an “outperform” rating in a report on Wednesday, June 3rd. Finally, Bank of America raised shares of STMicroelectronics from a “neutral” rating to a “buy” rating and set a $100.00 target price for the company in a research report on Wednesday, June 10th. Eleven research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $64.39.

STMicroelectronics Trading Down 9.3%

The company has a market cap of $65.10 billion, a P/E ratio of 454.03 and a beta of 1.94. The business has a fifty day simple moving average of $62.13 and a 200 day simple moving average of $41.55. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.34 and a current ratio of 3.31.

STMicroelectronics (NYSE:STM) last issued its quarterly earnings results on Saturday, March 28th. The semiconductor producer reported $0.13 earnings per share for the quarter. The business had revenue of $3.10 billion during the quarter. STMicroelectronics had a return on equity of 3.01% and a net margin of 1.19%. Analysts anticipate that STMicroelectronics N.V. will post 1.17 earnings per share for the current fiscal year.

STMicroelectronics Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 22nd will be issued a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Tuesday, September 22nd. STMicroelectronics’s payout ratio is currently 193.75%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Van ECK Associates Corp grew its position in shares of STMicroelectronics by 12.2% during the 4th 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 worth $159,691,000 after acquiring an additional 1,778,113 shares during the period. Invesco Ltd. lifted 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 during the last quarter. Bank of America Corp DE lifted 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 during the last quarter. Finally, JPMorgan Chase & Co. boosted its stake in STMicroelectronics by 19.1% in the third quarter. JPMorgan Chase & Co. now owns 3,990,874 shares of the semiconductor producer’s stock valued at $112,782,000 after acquiring an additional 641,327 shares during the period. 5.05% of the stock is owned by institutional investors and hedge funds.

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.