STMicroelectronics (NYSE:STM) Shares Gap Down - Should You Sell?

Key Points

• STMicroelectronics' stock price gapped down from a previous close of $29.12 to an opening price of $25.90, with current trading at $25.69 and a trading volume of over 4.2 million shares.
• Analysts have mixed views on the company: Barclays maintained an "underweight" rating, while BNP Paribas upgraded it to "outperform," indicating a divergence in opinion about future performance.
• The semiconductor company reported a net margin of 5.49% and missed earnings expectations with $0.06 EPS, though revenue surpassed forecasts at $2.77 billion.

STMicroelectronics N.V. (NYSE:STM - Get Free Report)'s stock price gapped down prior to trading on Thursday . The stock had previously closed at $29.12, but opened at $25.90. STMicroelectronics shares last traded at $25.69, with a volume of 4,264,379 shares traded.

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. Barclays reiterated an "underweight" rating on shares of STMicroelectronics in a research report on Tuesday, September 16th. BNP Paribas upgraded shares of STMicroelectronics from a "hold" rating to an "outperform" rating in a research report on Thursday, September 4th. Susquehanna upped their target price on shares of STMicroelectronics from $35.00 to $40.00 and gave the stock a "positive" rating in a research report on Wednesday. Citigroup reiterated a "buy" rating on shares of STMicroelectronics in a research report on Thursday, September 4th. Finally, Craig Hallum lowered shares of STMicroelectronics from a "buy" rating to a "hold" rating and set a $28.00 target price for the company. in a research report on Thursday, July 24th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $32.06.

STMicroelectronics Trading Down 12.8%

The firm's 50-day simple moving average is $27.61 and its 200-day simple moving average is $26.76. The company has a quick ratio of 1.96, a current ratio of 2.74 and a debt-to-equity ratio of 0.11. The firm has a market capitalization of $22.82 billion, a PE ratio of 37.04, a price-to-earnings-growth ratio of 6.29 and a beta of 1.66.

STMicroelectronics (NYSE:STM - Get Free Report) last posted its quarterly earnings results on Thursday, July 24th. The semiconductor producer reported $0.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.10 by ($0.04). STMicroelectronics had a net margin of 5.49% and a return on equity of 4.55%. The business had revenue of $2.77 billion for the quarter, compared to analysts' expectations of $2.71 billion. Equities analysts expect that STMicroelectronics N.V. will post 0.85 earnings per share for the current year.

Hedge Funds Weigh In On STMicroelectronics

Hedge funds and other institutional investors have recently modified their holdings of the company. Rothschild Investment LLC raised its stake in shares of STMicroelectronics by 248.4% during the second quarter. Rothschild Investment LLC now owns 1,303 shares of the semiconductor producer's stock valued at $40,000 after acquiring an additional 929 shares during the last quarter. Farther Finance Advisors LLC raised its stake in shares of STMicroelectronics by 139.6% during the first quarter. Farther Finance Advisors LLC now owns 1,862 shares of the semiconductor producer's stock valued at $41,000 after acquiring an additional 1,085 shares during the last quarter. Smartleaf Asset Management LLC raised its stake in shares of STMicroelectronics by 63.1% during the first quarter. Smartleaf Asset Management LLC now owns 2,167 shares of the semiconductor producer's stock valued at $48,000 after acquiring an additional 838 shares during the last quarter. AlphaCore Capital LLC bought a new position in shares of STMicroelectronics during the second quarter valued at about $57,000. Finally, IFP Advisors Inc raised its stake in shares of STMicroelectronics by 85.4% during the second quarter. IFP Advisors Inc now owns 2,269 shares of the semiconductor producer's stock valued at $69,000 after acquiring an additional 1,045 shares during the last quarter. 5.05% of the stock is owned by institutional investors.

About STMicroelectronics

STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments.

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