STMicroelectronics (NYSE:STM) Reaches New 1-Year High - Here's Why

Key Points

• STMicroelectronics' stock hit a new 52-week high of $44.78 on Monday, trading around $44.58 on volume of about 9.78 million shares.
• Analyst coverage is mixed—eight Buys, four Holds and two Sells—with an average rating of Hold and an average price target of $34.79, though Mizuho set a $48 target and Morgan Stanley upgraded to Overweight.
• The latest quarter missed EPS ($0.11 vs. $0.27 expected) despite a slight revenue beat, and the company shows a very high P/E (246.77) alongside low leverage (debt/equity 0.10) and strong liquidity (current ratio 3.36).

STMicroelectronics N.V. (NYSE:STM - Get Free Report)'s stock price hit a new 52-week high on Monday . The stock traded as high as $44.78 and last traded at $44.5790, with a volume of 9778650 shares traded. The stock had previously closed at $44.22.

Analysts Set New Price Targets

STM has been the topic of several research reports. Susquehanna increased their price target on shares of STMicroelectronics from $35.00 to $40.00 and gave the stock a "positive" rating in a report on Monday, February 23rd. Mizuho set a $48.00 price target on shares of STMicroelectronics and gave the stock an "outperform" rating in a report on Thursday. Weiss Ratings downgraded shares of STMicroelectronics from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, March 6th. Finally, Morgan Stanley upgraded shares of STMicroelectronics from an "equal weight" rating to an "overweight" rating in a report on Thursday, March 26th. Eight investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $34.79.

STMicroelectronics Stock Up 0.4%

The business's 50 day moving average is $34.54 and its 200-day moving average is $29.28. The stock has a market cap of $39.89 billion, a price-to-earnings ratio of 246.77 and a beta of 1.51. The company has a debt-to-equity ratio of 0.10, a quick ratio of 2.43 and a current ratio of 3.36.

STMicroelectronics (NYSE:STM - Get Free Report) last announced its quarterly earnings data on Friday, January 30th. The semiconductor producer reported $0.11 earnings per share for the quarter, missing analysts' consensus estimates of $0.27 by ($0.16). The firm had revenue of $3.33 billion during the quarter, compared to analysts' expectations of $3.29 billion. STMicroelectronics had a net margin of 1.41% and a return on equity of 2.70%. On average, sell-side analysts predict that STMicroelectronics N.V. will post 0.85 EPS for the current fiscal year.

Institutional Trading of STMicroelectronics

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Amundi acquired a new position in STMicroelectronics in the 1st quarter valued at about $947,000. AQR Capital Management LLC grew its position in STMicroelectronics by 182.8% in the 1st quarter. AQR Capital Management LLC now owns 32,094 shares of the semiconductor producer's stock valued at $705,000 after acquiring an additional 20,745 shares in the last quarter. Legal & General Group Plc acquired a new position in STMicroelectronics in the 2nd quarter valued at about $119,000. M&T Bank Corp acquired a new position in STMicroelectronics in the 2nd quarter valued at about $303,000. Finally, EverSource Wealth Advisors LLC grew its position in STMicroelectronics by 79.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,883 shares of the semiconductor producer's stock valued at $148,000 after acquiring an additional 2,156 shares in the last quarter. 5.05% of the stock is owned by institutional investors and hedge funds.

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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