STMicroelectronics N.V. (STM) – What Are Researchers Thinking About This Stock?

Shares of STMicroelectronics N.V. (NYSE:STM) have received a consensus rating of “Moderate Buy” from the twelve brokerages that are covering the company, MarketBeat Ratings reports. Five research analysts have rated the stock with a hold recommendation and seven have issued a buy recommendation on the company. The average 1 year target price among brokerages that have covered the stock in the last year is $75.06.

Several analysts have commented on STM shares. Citigroup reiterated a “buy” rating on shares of STMicroelectronics in a research report on Wednesday, September 2nd. Bank of America reaffirmed a “buy” rating on shares of STMicroelectronics in a research note on Friday. Barclays set a $60.00 price objective on STMicroelectronics in a report on Friday, July 24th. Susquehanna increased their target price on STMicroelectronics from $60.00 to $75.00 and gave the company a “positive” rating in a research note on Tuesday, July 21st. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of STMicroelectronics in a report on Friday, August 21st.

STMicroelectronics Stock Down 6.5%

Shares of NYSE:STM opened at $46.75 on Friday. STMicroelectronics has a one year low of $21.11 and a one year high of $81.42. The company has a 50 day moving average of $50.31 and a 200-day moving average of $49.84. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.78 and a quick ratio of 2.08. The stock has a market cap of $41.99 billion, a price-to-earnings ratio of 83.48 and a beta of 1.96.

STMicroelectronics (NYSE:STM) last posted its quarterly earnings results on Thursday, October 29th. The semiconductor producer reported $0.37 earnings per share for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.03). STMicroelectronics had a return on equity of 4.72% and a net margin of 3.80%. The business had revenue of $3.76 billion for the quarter, compared to the consensus estimate of $3.72 billion. On average, sell-side analysts forecast that STMicroelectronics will post 1.27 earnings per share for the current year.

Hedge Funds Weigh In On STMicroelectronics

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Mirae Asset Global Investments Co. Ltd. bought a new stake in STMicroelectronics during the third quarter worth about $177,000. Vise Technologies Inc. boosted its position in STMicroelectronics by 44.8% during the third quarter. Vise Technologies Inc. now owns 30,226 shares of the semiconductor producer’s stock valued at $1,613,000 after purchasing an additional 9,352 shares during the last quarter. State of Wyoming acquired a new position in STMicroelectronics during the third quarter valued at approximately $432,000. Brian Low Financial Group LLC grew its stake in STMicroelectronics by 716.7% in the third quarter. Brian Low Financial Group LLC now owns 30,022 shares of the semiconductor producer’s stock valued at $1,602,000 after purchasing an additional 26,346 shares in the last quarter. Finally, D.A. Davidson & CO. grew its stake in STMicroelectronics by 13.2% in the third quarter. D.A. Davidson & CO. now owns 6,564 shares of the semiconductor producer’s stock valued at $350,000 after purchasing an additional 767 shares in the last quarter. 5.05% of the stock is owned by institutional investors and hedge funds.

STMicroelectronics News Roundup

Here are the key news stories impacting STMicroelectronics this week:

• Positive Sentiment: AI and satellite demand are improving growth prospects. Third-quarter revenue reached $3.76 billion, ahead of consensus, supported by AI data-center infrastructure, satellite customers and improving industrial demand. Management also raised its data-center revenue expectations and cited a roughly $20 billion backlog. Reuters report on STMicroelectronics results
• Positive Sentiment: Fourth-quarter guidance points to significant sequential growth. STMicroelectronics forecast fourth-quarter revenue of approximately $4.15 billion and a 39% gross margin at the midpoint, suggesting stronger demand and margin recovery. The company expects a broader recovery across industrial markets, while AI remains a key growth engine. STMicroelectronics Q3 financial results
• Positive Sentiment: Restructuring could support longer-term profitability. Management outlined a multiyear manufacturing reshaping program intended to improve the cost base and restore margins. New CTO and chief strategy officer appointments are designed to better coordinate product development, technology investment and corporate strategy. STMicroelectronics leadership announcement
• Neutral Sentiment: Options activity indicates increased speculative interest. Call-option volume was approximately 140% above typical levels, suggesting some traders are positioning for further upside, although this does not confirm a change in the company’s fundamentals.
• Negative Sentiment: Quarterly EPS fell short of expectations. Reported EPS of $0.37 missed the $0.40 consensus estimate, while profitability remains modest, with a reported net margin of 3.56%. Investors may be looking for execution on the promised margin recovery before assigning a higher valuation.
• Negative Sentiment: Valuation leaves limited room for disappointment. STM trades at a high earnings multiple after a substantial longer-term share-price advance. As a result, investors may be taking profits or reacting cautiously to restructuring risks, even though the revenue outlook is improving.

About STMicroelectronics

STMicroelectronics N.V. (NYSE: STM) is a global semiconductor company that designs, develops, manufactures and markets a broad range of integrated circuits and other semiconductor products. Its offerings support applications in automotive, industrial, personal electronics, communications equipment and computer systems.

The company’s product portfolio includes microcontrollers, analog and power semiconductors, sensors, microelectromechanical systems (MEMS), connectivity products and automotive chips.