STMicroelectronics (NYSE:STM) Shares Up 6.9% – Should You Buy?

STMicroelectronics N.V. (NYSE:STM) shot up 6.9% on Thursday . The stock traded as high as $78.54 and last traded at $78.3980. 17,532,922 shares changed hands during mid-day trading, an increase of 69% from the average daily volume of 10,349,636 shares. The stock had previously closed at $73.36.

Wall Street Analysts Forecast Growth

STM has been the subject of a number of research analyst reports. Susquehanna increased their target price on shares of STMicroelectronics from $35.00 to $40.00 and gave the stock a “positive” rating in a research report on Monday, February 23rd. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of STMicroelectronics in a research report on Thursday, June 11th. Craig Hallum upgraded shares of STMicroelectronics from a “hold” rating to a “buy” rating and set a $58.00 price objective for the company in a research note on Thursday, April 23rd. TD Cowen reissued a “hold” rating on shares of STMicroelectronics in a research report on Friday, April 24th. Finally, UBS Group set a $100.00 target price on shares of STMicroelectronics in a research note on Wednesday, June 10th. Eleven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, STMicroelectronics has an average rating of “Moderate Buy” and a consensus price target of $64.39.

STMicroelectronics Stock 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 $61.32 and a 200-day moving average price of $41.03. The firm has a market capitalization of $70.41 billion, a PE ratio of 490.02 and a beta of 1.94.

STMicroelectronics (NYSE:STM) last issued its quarterly earnings results on Saturday, March 28th. The semiconductor producer reported $0.13 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 during the quarter. On average, research analysts expect that STMicroelectronics N.V. will post 1.17 EPS for the current fiscal year.

STMicroelectronics Dividend Announcement

The firm also recently announced 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. This represents a $0.36 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Tuesday, September 22nd. STMicroelectronics’s dividend payout ratio is 193.75%.

Institutional Trading of STMicroelectronics

Hedge funds and other institutional investors have recently made changes to their positions in the stock. JPMorgan Chase & Co. increased its holdings 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 buying an additional 641,327 shares during the last quarter. Maxi Investments CY Ltd bought a new position in STMicroelectronics during the 4th quarter worth approximately $2,335,000. M&T Bank Corp lifted its holdings in 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 buying an additional 23,593 shares during the last quarter. PNC Financial Services Group Inc. grew its position in shares of STMicroelectronics by 878.9% in the 3rd quarter. PNC Financial Services Group Inc. now owns 184,067 shares of the semiconductor producer’s stock worth $5,202,000 after acquiring an additional 165,264 shares in the last quarter. Finally, Diversified Management Inc. bought a new stake in shares of STMicroelectronics in the 4th quarter valued at approximately $648,000. Institutional investors 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.