STMicroelectronics (NYSE:STM) Shares Gap Down - What's Next?

Key Points

• STMicroelectronics shares gapped down sharply, opening at $54.40 after closing at $65.77, as investors reacted to the latest results and outlook. The stock was last trading around $55.45 on heavy volume.
• The company beat Q2 expectations, reporting EPS of $0.31 versus $0.26 expected and revenue of $3.49 billion versus $3.46 billion estimated, with strength in automotive, AI-related data-center optical, and consumer electronics demand.
• Despite the strong quarter, the market is focused on a softer-than-expected Q3 revenue guide and ongoing manufacturing/supply-chain challenges, which are weighing on sentiment and overshadowing the earnings beat.

STMicroelectronics N.V. (NYSE:STM - Get Free Report)'s stock price gapped down before the market opened on Thursday . The stock had previously closed at $65.77, but opened at $54.40. STMicroelectronics shares last traded at $55.4480, with a volume of 8,916,531 shares trading hands.

More STMicroelectronics News

Here are the key news stories impacting STMicroelectronics this week:

• Positive Sentiment: STM posted Q2 EPS of $0.31, above the $0.26 consensus, and revenue of $3.49 billion, topping estimates and rising year over year. Management also pointed to improving demand in automotive, AI-related data-center optical, and consumer electronics markets. STMicroelectronics Reports Q2 2026 Financial Results
• Positive Sentiment: STMicroelectronics raised its AI data-center sales goal again, reinforcing the long-term growth story around artificial intelligence and high-performance computing. SpaceX Supplier STMicroelectronics Hikes AI Data-Center Sales Goal Again
• Neutral Sentiment: Management said manufacturing and supply-chain hurdles remain, even as revenue growth across key segments stayed strong. STMicroelectronics NV (STM) Q2 2026 Earnings Call Highlights: Strong Revenue Growth Amid ...
• Neutral Sentiment: The company’s Q3 revenue guidance was roughly in line to slightly below expectations, which is tempering enthusiasm despite the better Q2 print. STMicro's Q3 revenue view slightly lags estimates even as chip demand recovers
• Negative Sentiment: Investors are selling STM because the third-quarter sales outlook came in softer than hoped, overshadowing the earnings beat and signaling that the recovery may be gradual. STMicroelectronics Sinks On Soft Q3 Sales Outlook

Wall Street Analyst Weigh In

STM has been the topic of several analyst reports. TD Cowen reaffirmed a "hold" rating on shares of STMicroelectronics in a report on Monday, July 13th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of STMicroelectronics in a research report on Thursday, June 11th. Susquehanna increased their price target on STMicroelectronics from $60.00 to $75.00 and gave the company a "positive" rating in a research note on Tuesday. Weiss Ratings raised STMicroelectronics from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, May 26th. Finally, Mizuho upped their price objective on shares of STMicroelectronics from $68.00 to $84.00 and gave the company an "outperform" rating in a report on Wednesday, June 3rd. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, STMicroelectronics presently has a consensus rating of "Moderate Buy" and an average price target of $69.61.

STMicroelectronics Price Performance

The company has a debt-to-equity ratio of 0.12, a current ratio of 3.31 and a quick ratio of 2.34. The stock has a fifty day simple moving average of $70.54 and a 200-day simple moving average of $48.24. The company has a market capitalization of $49.36 billion, a price-to-earnings ratio of 341.78 and a beta of 1.93.

STMicroelectronics (NYSE:STM - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The semiconductor producer reported $0.31 EPS for the quarter, beating the consensus estimate of $0.26 by $0.05. STMicroelectronics had a net margin of 1.19% and a return on equity of 3.01%. The company had revenue of $3.49 billion for the quarter, compared to analyst estimates of $3.46 billion. On average, equities research analysts anticipate that STMicroelectronics N.V. will post 1.25 EPS for the current year.

Hedge Funds Weigh In On STMicroelectronics

Several institutional investors and hedge funds have recently modified their holdings of STM. Abound Wealth Management purchased a new position in STMicroelectronics during the fourth quarter worth approximately $26,000. CIBC Private Wealth Group LLC raised its stake in shares of STMicroelectronics by 3,746.2% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,000 shares of the semiconductor producer's stock worth $26,000 after buying an additional 974 shares during the period. Portus Wealth Advisors LLC purchased a new position in shares of STMicroelectronics during the 1st quarter valued at approximately $32,000. Public Employees Retirement System of Ohio purchased a new position in shares of STMicroelectronics during the 1st quarter valued at approximately $45,000. Finally, Advisory Services Network LLC acquired a new stake in STMicroelectronics in the 3rd quarter valued at $52,000. Hedge funds and other institutional investors 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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