STMicroelectronics (NYSE:STM) Shares Gap Down Following Weak Earnings

STMicroelectronics N.V. (NYSE:STM) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $30.33, but opened at $28.28. STMicroelectronics shares last traded at $27.7950, with a volume of 7,521,261 shares changing hands.

The semiconductor producer reported $0.11 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.27 by ($0.16). The company had revenue of $3.33 billion during the quarter, compared to the consensus estimate of $3.29 billion. STMicroelectronics had a net margin of 4.55% and a return on equity of 4.06%.

STMicroelectronics News Roundup

Here are the key news stories impacting STMicroelectronics this week:

• Positive Sentiment: Management forecasted Q1 revenue slightly above analyst expectations and provided a mid-point revenue/gross-margin outlook that signals stability into the quarter, supporting near-term revenue visibility. STMicroelectronics forecasts first-quarter revenue slightly above expectations
• Positive Sentiment: Company reported returning to year-over-year revenue growth driven by demand for chips in personal electronics, communications, peripherals and industrial applications — a sign end-market demand is improving. Apple Supplier STMicroelectronics Flags Improving Chip Sales
• Positive Sentiment: ST and NanoXplore announced a space-qualified European FPGA for space missions — a strategic product win that can expand ST’s addressable market in aerospace and defense. NanoXplore and STMicroelectronics deliver European FPGA for space missions NanoXplore and STMicroelectronics secure space qualification for European FPGA
• Neutral Sentiment: Analyst commentary and previews are focused on whether improving auto demand guidance will translate to better margins; the narrative is mixed and depends on product mix and timing. Will STMicroelectronics’ (ENXTPA:STMPA) Q1 2026 Auto Demand Guidance Shift Its Margin Story?
• Negative Sentiment: Q4 EPS missed materially ($0.11 vs. $0.27 consensus) despite revenue slightly above estimates; FY25 results and the release disclosed $141M in Q4 and $376M for FY25 of impairment/restructuring-related charges and warned restructuring costs will continue to weigh on operating income. That pressure on profitability is the main near-term negative catalyst. STMicroelectronics Reports Q4 and FY 2025 Financial Results STMicro upbeat on 2026 visibility, warns restructuring costs will continue to weigh
• Positive Sentiment: Short interest fell noticeably in January, reducing a near-term downside pressure from short sellers and potentially supporting the stock if fundamentals improve. (Market data)

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on STM shares. TD Cowen reiterated a “hold” rating on shares of STMicroelectronics in a research report on Friday, October 24th. Susquehanna boosted their target price on STMicroelectronics from $35.00 to $40.00 and gave the stock a “positive” rating in a research note on Wednesday, October 22nd. Robert W. Baird set a $45.00 price target on shares of STMicroelectronics in a research note on Friday, October 24th. Weiss Ratings restated a “sell (d+)” rating on shares of STMicroelectronics in a research note on Wednesday, January 21st. Finally, Mizuho set a $28.00 price objective on shares of STMicroelectronics in a research note on Friday, January 9th. Seven analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $31.19.

Institutional Investors Weigh In On STMicroelectronics

Institutional investors have recently modified their holdings of the business. Legacy Wealth Asset Management LLC lifted its position in shares of STMicroelectronics by 2.6% during the 3rd quarter. Legacy Wealth Asset Management LLC now owns 18,500 shares of the semiconductor producer’s stock valued at $523,000 after buying an additional 475 shares in the last quarter. Vident Advisory LLC grew its position in shares of STMicroelectronics by 2.5% in the third quarter. Vident Advisory LLC now owns 23,196 shares of the semiconductor producer’s stock valued at $656,000 after purchasing an additional 573 shares during the period. CWM LLC increased its stake in shares of STMicroelectronics by 27.5% during the second quarter. CWM LLC now owns 2,680 shares of the semiconductor producer’s stock worth $82,000 after purchasing an additional 578 shares in the last quarter. Signaturefd LLC raised its position in shares of STMicroelectronics by 3.4% during the 3rd quarter. Signaturefd LLC now owns 20,598 shares of the semiconductor producer’s stock worth $582,000 after purchasing an additional 677 shares during the last quarter. Finally, Allworth Financial LP boosted its holdings in STMicroelectronics by 16.5% in the 3rd quarter. Allworth Financial LP now owns 4,817 shares of the semiconductor producer’s stock worth $136,000 after buying an additional 684 shares during the last quarter. 5.05% of the stock is currently owned by institutional investors and hedge funds.

STMicroelectronics Trading Down 7.2%

The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.28 and a current ratio of 3.22. The company has a market capitalization of $25.29 billion, a PE ratio of 47.92, a price-to-earnings-growth ratio of 3.66 and a beta of 1.56. The company has a 50 day simple moving average of $26.31 and a 200 day simple moving average of $26.70.

STMicroelectronics Company Profile

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.