STMicroelectronics (NYSE:STM) Shares Gap Down - Time to Sell?

Key Points

• STMicroelectronics shares fell 5.2%, opening at $55.24 versus the prior close of $58.72, before trading near $56.41.
• Analysts remain broadly positive, with seven Buy ratings and five Holds, producing a “Moderate Buy” consensus and an average price target of $76.17.
• The company exceeded quarterly expectations, reporting $0.31 EPS versus the $0.26 estimate and $3.49 billion in revenue versus the $3.46 billion consensus.

Shares of STMicroelectronics N.V. (NYSE:STM - Get Free Report) gapped down before the market opened on Wednesday. The stock had previously closed at $58.72, but opened at $55.24. STMicroelectronics shares last traded at $56.4070, with a volume of 2,610,642 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the stock. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of STMicroelectronics in a research report on Thursday, June 11th. TD Cowen reaffirmed a "hold" rating on shares of STMicroelectronics in a research note on Monday, July 13th. Citigroup reiterated a "buy" rating on shares of STMicroelectronics in a report on Wednesday, September 2nd. Bank of America raised STMicroelectronics from a "neutral" rating to a "buy" rating and set a $100.00 target price for the company in a research note on Wednesday, June 10th. Finally, Craig Hallum restated a "buy" rating and set a $70.00 target price on shares of STMicroelectronics in a report on Thursday, July 23rd. Seven equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $76.17.

STMicroelectronics Stock Down 5.2%

The firm has a market cap of $49.99 billion, a PE ratio of 109.32 and a beta of 1.96. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.08 and a current ratio of 2.78. The company's 50-day simple moving average is $52.09 and its two-hundred day simple moving average is $56.22.

STMicroelectronics (NYSE:STM - Get Free Report) last released its quarterly earnings data 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. The firm 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, analysts predict that STMicroelectronics N.V. will post 1.3 earnings per share for the current fiscal year.

Hedge Funds Weigh In On STMicroelectronics

Hedge funds have recently made changes to their positions in the business. Portus Wealth Advisors LLC bought a new stake in shares of STMicroelectronics during the 1st quarter valued at about $32,000. Continuum Advisory LLC bought a new position in STMicroelectronics in the second quarter worth about $34,000. Anchor Investment Management LLC bought a new position in STMicroelectronics in the second quarter worth about $37,000. Public Employees Retirement System of Ohio purchased a new stake in STMicroelectronics in the first quarter worth about $45,000. Finally, MCF Advisors LLC purchased a new stake in STMicroelectronics in the second quarter worth about $57,000. 5.05% of the stock is owned by hedge funds and other institutional investors.

STMicroelectronics Company Profile

STMicroelectronics N.V. NYSE: STM is a global semiconductor company that designs, develops, manufactures and markets a broad range of electronic components and solutions. Its products support applications in automotive, industrial, personal electronics, communications infrastructure and other technology markets.

The company's portfolio includes microcontrollers, microprocessors, analog and mixed-signal integrated circuits, power semiconductors, sensors, MEMS devices, connectivity products and embedded-processing solutions.

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