STMicroelectronics Sees Unusually High Options Volume (NYSE:STM)

Key Points

• Unusual options activity: Traders bought 32,454 STMicroelectronics call options, approximately 51% above the average call volume of 21,427.
• Mixed but generally positive analyst outlook: Seven analysts rate the stock Buy and five rate it Hold, producing a “Moderate Buy” consensus and an average price target of $76.17.
• Shares declined while earnings exceeded expectations: STMicroelectronics fell 2.6% to $51.10, despite reporting quarterly EPS of $0.31 versus the $0.26 consensus and revenue of $3.49 billion versus $3.46 billion expected.

STMicroelectronics N.V. (NYSE:STM - Get Free Report) was the target of some unusual options trading on Thursday. Stock traders acquired 32,454 call options on the stock. This represents an increase of approximately 51% compared to the average volume of 21,427 call options.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. Citigroup restated a "buy" rating on shares of STMicroelectronics in a research report on Wednesday, September 2nd. UBS Group set a $100.00 price objective on shares of STMicroelectronics in a report on Wednesday, June 10th. Mizuho decreased their target price on shares of STMicroelectronics from $84.00 to $80.00 and set an "outperform" rating on the stock in a research note on Friday, July 24th. TD Cowen restated a "hold" rating on shares of STMicroelectronics in a report on Monday, July 13th. Finally, Barclays set a $60.00 price target on STMicroelectronics in a research report on Friday, July 24th. Seven investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $76.17.

STMicroelectronics Trading Down 2.6%

NYSE:STM traded down $1.35 during trading hours on Thursday, reaching $51.10. 2,648,606 shares of the stock were exchanged, compared to its average volume of 10,126,683. STMicroelectronics has a twelve month low of $21.11 and a twelve month high of $81.42. The business has a 50-day moving average of $52.82 and a two-hundred day moving average of $54.88. The company has a market capitalization of $45.90 billion, a price-to-earnings ratio of 100.13 and a beta of 1.93. The company has a quick ratio of 2.08, a current ratio of 2.78 and a debt-to-equity ratio of 0.16.

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

Hedge Funds Weigh In On STMicroelectronics

Several hedge funds and other institutional investors have recently made changes to their positions in STM. Situational Awareness LP purchased a new position in shares of STMicroelectronics in the 2nd quarter valued at $584,344,000. Van ECK Associates Corp boosted its stake in STMicroelectronics by 12.2% in the fourth quarter. Van ECK Associates Corp now owns 10,532,428 shares of the semiconductor producer's stock valued at $273,211,000 after acquiring an additional 1,145,426 shares in the last quarter. Brandes Investment Partners LP boosted its stake in STMicroelectronics by 20.4% in the fourth quarter. Brandes Investment Partners LP now owns 1,566,965 shares of the semiconductor producer's stock valued at $40,647,000 after acquiring an additional 265,108 shares in the last quarter. The Manufacturers Life Insurance Company purchased a new position in shares of STMicroelectronics during the first quarter worth about $19,132,000. Finally, Beaconlight Capital LLC acquired a new stake in shares of STMicroelectronics during the first quarter worth about $13,284,000. Hedge funds and other institutional investors own 5.05% of the company's stock.

STMicroelectronics Company Profile

STMicroelectronics N.V. NYSE: STM is a global semiconductor company that designs, develops, manufactures and markets a broad range of integrated circuits and electronic components. Its products are used in automotive systems, industrial equipment, personal electronics, communications infrastructure and other embedded applications.

The company's portfolio includes microcontrollers and microprocessors, analog and mixed-signal devices, power semiconductors, sensors, MEMS devices, connectivity products and automotive semiconductors.

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