Royal Bank of Canada Trims Stake in STMicroelectronics N.V. $STM

Key Points

• Royal Bank of Canada cut its STMicroelectronics stake by 33% in the first quarter, selling 122,499 shares and retaining 249,104 shares valued at approximately $8.6 million.
• Analysts remain generally positive, with a consensus “Moderate Buy” rating and an average price target of $71.65; individual targets range from $60 to $75.
• STMicroelectronics exceeded quarterly expectations, reporting $0.31 in EPS versus a $0.26 estimate and revenue of $3.49 billion versus the $3.46 billion consensus.

Royal Bank of Canada lessened its stake in shares of STMicroelectronics N.V. (NYSE:STM - Free Report) by 33.0% during the first quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 249,104 shares of the semiconductor producer's stock after selling 122,499 shares during the quarter. Royal Bank of Canada's holdings in STMicroelectronics were worth $8,607,000 at the end of the most recent reporting period.

Several other hedge funds also recently bought and sold shares of the stock. CIBC Private Wealth Group LLC lifted its position in shares of STMicroelectronics by 3,746.2% in the fourth quarter. CIBC Private Wealth Group LLC now owns 1,000 shares of the semiconductor producer's stock valued at $26,000 after acquiring an additional 974 shares in the last quarter. Portus Wealth Advisors LLC purchased a new stake in STMicroelectronics during the 1st quarter worth about $32,000. Public Employees Retirement System of Ohio purchased a new stake in STMicroelectronics during the 1st quarter worth about $45,000. Advisory Services Network LLC acquired a new position in STMicroelectronics in the 3rd quarter valued at about $52,000. Finally, Brown Brothers Harriman & Co. lifted its holdings in STMicroelectronics by 350.4% in the 4th quarter. Brown Brothers Harriman & Co. now owns 2,680 shares of the semiconductor producer's stock valued at $70,000 after purchasing an additional 2,085 shares in the last quarter. Hedge funds and other institutional investors own 5.05% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have issued reports on STM. Barclays set a $60.00 price target on shares of STMicroelectronics in a research note on Friday, July 24th. Weiss Ratings raised shares of STMicroelectronics from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday, May 26th. Craig Hallum restated a "buy" rating and set a $70.00 target price on shares of STMicroelectronics in a research report on Thursday, July 23rd. The Goldman Sachs Group cut their price target on STMicroelectronics from $67.50 to $60.50 and set a "neutral" rating for the company in a report on Monday, July 27th. Finally, Susquehanna increased their price target on STMicroelectronics from $60.00 to $75.00 and gave the stock a "positive" rating in a research note on Tuesday, July 21st. Eight equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $71.65.

STMicroelectronics Trading Down 0.0%

Shares of STM stock opened at $56.10 on Monday. The firm's 50-day simple moving average is $67.36 and its 200-day simple moving average is $50.30. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.78 and a quick ratio of 2.08. STMicroelectronics N.V. has a 1-year low of $21.11 and a 1-year high of $81.42. The firm has a market cap of $50.38 billion, a P/E ratio of 109.99 and a beta of 1.95.

STMicroelectronics (NYSE:STM - Get Free Report) last released its earnings results on Friday, July 24th. The semiconductor producer reported $0.31 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.26 by $0.05. STMicroelectronics had a net margin of 3.56% and a return on equity of 4.30%. The firm had revenue of $3.49 billion during the quarter, compared to the consensus estimate of $3.46 billion. As a group, equities analysts forecast that STMicroelectronics N.V. will post 1.3 EPS for the current year.

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.

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