STMicroelectronics N.V. (NYSE:STM) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts rate STMicroelectronics “Moderate Buy”: Seven of 12 analysts recommend buying the stock, while five rate it a hold. The average 12-month price target is $76.17, although recent targets range from $60.00 to $60.50.
• Several institutional investors increased their holdings, including Morgan Stanley, Invesco, Bank of America and Van ECK Associates. Institutional investors collectively own 5.05% of the company.
• STMicroelectronics exceeded quarterly expectations, reporting $0.31 in earnings per share versus a $0.26 consensus estimate and $3.49 billion in revenue. Shares opened at $51.36, with the stock trading at a high P/E ratio of 100.71.

Shares of STMicroelectronics N.V. (NYSE:STM - Get Free Report) have been given an average rating of "Moderate Buy" by the twelve ratings firms that are currently covering the company, MarketBeat reports. Five analysts have rated the stock with a hold recommendation and seven have assigned a buy recommendation to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $76.1667.

A number of analysts recently issued reports on the company. Barclays set a $60.00 price objective on STMicroelectronics in a report on Friday, July 24th. Wall Street Zen upgraded STMicroelectronics from a "hold" rating to a "buy" rating in a research report on Saturday, July 25th. Morgan Stanley reissued an "overweight" rating on shares of STMicroelectronics in a report on Tuesday, June 30th. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of STMicroelectronics in a research report on Thursday, June 11th. Finally, The Goldman Sachs Group reduced their price objective on shares of STMicroelectronics from $67.50 to $60.50 and set a "neutral" rating for the company in a research note on Monday, July 27th.

Institutional Investors Weigh In On STMicroelectronics

Large investors have recently added to or reduced their stakes in the business. Van ECK Associates Corp increased its stake in STMicroelectronics by 12.2% in the 4th quarter. Van ECK Associates Corp now owns 10,532,428 shares of the semiconductor producer's stock worth $273,211,000 after acquiring an additional 1,145,426 shares during the last quarter. Situational Awareness LP purchased a new position in shares of STMicroelectronics during the second quarter worth about $584,344,000. Morgan Stanley increased its position in shares of STMicroelectronics by 40.6% in the fourth quarter. Morgan Stanley now owns 6,156,161 shares of the semiconductor producer's stock worth $159,691,000 after purchasing an additional 1,778,113 shares during the last quarter. Invesco Ltd. increased its position in shares of STMicroelectronics by 29.9% in the fourth quarter. Invesco Ltd. now owns 5,199,951 shares of the semiconductor producer's stock worth $134,887,000 after purchasing an additional 1,196,018 shares during the last quarter. Finally, Bank of America Corp DE raised its stake in 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 valued at $132,240,000 after purchasing an additional 1,326,020 shares in the last quarter. Institutional investors own 5.05% of the company's stock.

STMicroelectronics Stock Performance

NYSE STM opened at $51.36 on Friday. The company's 50 day moving average is $58.31 and its 200-day moving average is $53.19. STMicroelectronics has a 12-month low of $21.11 and a 12-month high of $81.42. The company has a quick ratio of 2.08, a current ratio of 2.78 and a debt-to-equity ratio of 0.16. The firm has a market cap of $46.13 billion, a P/E ratio of 100.71 and a beta of 1.93.

STMicroelectronics (NYSE:STM - Get Free Report) last released its quarterly earnings data on Friday, July 24th. The semiconductor producer reported $0.31 EPS for the quarter, topping the consensus estimate of $0.26 by $0.05. STMicroelectronics had a net margin of 3.56% and a return on equity of 4.30%. The company had revenue of $3.49 billion during the quarter, compared to the consensus estimate of $3.46 billion. Sell-side analysts predict that STMicroelectronics will post 1.3 earnings per share for the current year.

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.

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