STMicroelectronics (NYSE:STM) Stock Price Down 9.2% – Should You Sell?

Shares of STMicroelectronics N.V. (NYSE:STM) dropped 9.2% on Tuesday . The stock traded as low as $71.68 and last traded at $72.54. 14,115,969 shares traded hands during trading, an increase of 36% from the average daily volume of 10,359,346 shares. The stock had previously closed at $79.91.

Analyst Upgrades and Downgrades

A number of research firms have commented on STM. TD Cowen reiterated a “hold” rating on shares of STMicroelectronics in a research note on Friday, April 24th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of STMicroelectronics in a report on Thursday, June 11th. Morgan Stanley reiterated an “overweight” rating on shares of STMicroelectronics in a research note on Thursday, May 28th. Craig Hallum raised shares of STMicroelectronics from a “hold” rating to a “buy” rating and set a $58.00 target price on the stock in a research report on Thursday, April 23rd. Finally, Mizuho upped their price target on shares of STMicroelectronics from $68.00 to $84.00 and gave the company an “outperform” rating in a research note on Wednesday, June 3rd. Eleven research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $64.39.

STMicroelectronics Trading Down 9.2%

The company has a current ratio of 3.31, a quick ratio of 2.34 and a debt-to-equity ratio of 0.12. The firm has a market cap of $65.15 billion, a price-to-earnings ratio of 453.40 and a beta of 1.94. The company has a fifty day moving average price of $62.13 and a 200-day moving average price of $41.55.

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

STMicroelectronics Announces Dividend

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

Hedge Funds Weigh In On STMicroelectronics

Several large investors have recently made changes to their positions in STM. Van ECK Associates Corp boosted its holdings in STMicroelectronics by 12.2% during the fourth 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 in the last quarter. Morgan Stanley increased its holdings 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 in the last quarter. Invesco Ltd. increased 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 valued at $134,887,000 after buying an additional 1,196,018 shares in the last quarter. Bank of America Corp DE raised its position in shares of 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 period. Finally, JPMorgan Chase & Co. raised its position in shares of STMicroelectronics by 19.1% in 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 period. 5.05% of the stock is currently 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.