STMicroelectronics (NYSE:STM) Cut to Hold at Zacks Research

Key Points

• Zacks Research downgraded STMicroelectronics from “strong buy” to “hold,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $71.65.
• STMicroelectronics reported quarterly EPS of $0.31, beating the $0.26 consensus estimate, while revenue of $3.49 billion slightly exceeded expectations.
• The stock opened at $54.20, well below its 52-week high of $81.42; institutional investors and hedge funds own approximately 5.05% of the company.

STMicroelectronics (NYSE:STM - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Monday,Zacks.com reports.

STM has been the topic of a number of other research reports. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of STMicroelectronics in a research report on Thursday, June 11th. Susquehanna lifted their price objective on STMicroelectronics from $60.00 to $75.00 and gave the company a "positive" rating in a research note on Tuesday, July 21st. Mizuho lowered their target price on STMicroelectronics from $84.00 to $80.00 and set an "outperform" rating on the stock in a research note on Friday, July 24th. Morgan Stanley restated an "overweight" rating on shares of STMicroelectronics in a research report on Tuesday, June 30th. Finally, UBS Group set a $100.00 price objective on shares of STMicroelectronics in a report on Wednesday, June 10th. Eight equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, STMicroelectronics has an average rating of "Moderate Buy" and a consensus target price of $71.65.

STMicroelectronics Price Performance

Shares of NYSE STM opened at $54.20 on Monday. 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 has a market cap of $48.68 billion, a PE ratio of 106.28 and a beta of 1.95. The business has a 50-day simple moving average of $68.24 and a two-hundred day simple moving average of $49.74. STMicroelectronics has a fifty-two week low of $21.11 and a fifty-two week high of $81.42.

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

Institutional Trading of STMicroelectronics

Large investors have recently bought and sold shares of the business. Maxi Investments CY Ltd acquired a new stake in shares of STMicroelectronics in the fourth quarter worth approximately $2,335,000. M&T Bank Corp boosted its holdings in STMicroelectronics by 243.1% in the fourth quarter. M&T Bank Corp now owns 33,299 shares of the semiconductor producer's stock valued at $864,000 after acquiring an additional 23,593 shares during the last quarter. Militia Capital Management LLC purchased a new stake in STMicroelectronics during the first quarter valued at about $3,455,000. Diversified Management Inc. purchased a new stake in STMicroelectronics during the fourth quarter valued at about $648,000. Finally, PNC Financial Services Group Inc. increased its stake in STMicroelectronics by 65.3% during the first quarter. PNC Financial Services Group Inc. now owns 228,674 shares of the semiconductor producer's stock worth $7,901,000 after acquiring an additional 90,330 shares during the last quarter. Institutional investors and hedge funds 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.

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