STMicroelectronics (NYSE:STM) Trading Down 1.6% – Here’s Why

STMicroelectronics N.V. (NYSE:STM) dropped 1.6% on Wednesday . The company traded as low as $73.28 and last traded at $73.3640. Approximately 11,329,918 shares traded hands during trading, an increase of 10% from the average daily volume of 10,289,285 shares. The stock had previously closed at $74.55.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on STM. Bank of America upgraded shares of STMicroelectronics from a “neutral” rating to a “buy” rating and set a $100.00 price objective on the stock in a report on Wednesday, June 10th. TD Cowen reaffirmed a “hold” rating on shares of STMicroelectronics in a research note on Friday, April 24th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of STMicroelectronics in a research report on Thursday, June 11th. Weiss Ratings raised shares of STMicroelectronics from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Tuesday, May 26th. Finally, Mizuho upped 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. Eleven research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $64.39.

STMicroelectronics Price Performance

The company has a debt-to-equity ratio of 0.12, a current ratio of 3.31 and a quick ratio of 2.34. The stock has a 50 day moving average price of $60.51 and a two-hundred day moving average price of $40.77. The firm has a market capitalization of $70.41 billion, a price-to-earnings ratio of 490.02 and a beta of 1.94.

STMicroelectronics (NYSE:STM) last posted its earnings results on Saturday, March 28th. The semiconductor producer reported $0.13 earnings per share (EPS) for the quarter. STMicroelectronics had a return on equity of 3.01% and a net margin of 1.19%.The firm had revenue of $3.10 billion for the quarter. As a group, analysts expect that STMicroelectronics N.V. will post 1.17 EPS for the current year.

STMicroelectronics Announces Dividend

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

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. JPMorgan Chase & Co. grew its holdings in STMicroelectronics by 19.1% during the 3rd 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 in the last quarter. Maxi Investments CY Ltd acquired a new stake in shares of STMicroelectronics in the 4th quarter valued at $2,335,000. M&T Bank Corp lifted its position in shares of STMicroelectronics by 243.1% during the 4th quarter. M&T Bank Corp now owns 33,299 shares of the semiconductor producer’s stock worth $864,000 after purchasing an additional 23,593 shares during the last quarter. PNC Financial Services Group Inc. lifted its position in shares of STMicroelectronics by 878.9% during the 3rd quarter. PNC Financial Services Group Inc. now owns 184,067 shares of the semiconductor producer’s stock worth $5,202,000 after purchasing an additional 165,264 shares during the last quarter. Finally, Diversified Management Inc. acquired a new position in shares of STMicroelectronics during the fourth quarter worth $648,000. Institutional investors and hedge funds own 5.05% of the company’s stock.

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.