STMicroelectronics (NYSE:STM) Shares Gap Up - Should You Buy?

Key Points

• STMicroelectronics shares gapped up from a previous close of $27.19 to open at $28.56, with a trading volume of over 2 million shares.
• Analysts have largely rated the stock positively, leading to a consensus price target of $32.06 and several upgrades, including a significant increase to a price target of $50.00 by Robert W. Baird.
• The company recently reported a quarterly earnings miss, with EPS of $0.06 compared to a consensus estimate of $0.10, although it exceeded revenue expectations with $2.77 billion reported.

STMicroelectronics N.V. (NYSE:STM - Get Free Report) shares gapped up prior to trading on Thursday . The stock had previously closed at $27.19, but opened at $28.56. STMicroelectronics shares last traded at $28.40, with a volume of 2,130,969 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. BNP Paribas Exane upgraded shares of STMicroelectronics from a "neutral" rating to an "outperform" rating and set a $31.00 target price for the company in a research note on Thursday, September 4th. Oddo Bhf raised STMicroelectronics to an "outperform" rating in a report on Wednesday, July 2nd. Craig Hallum cut STMicroelectronics from a "buy" rating to a "hold" rating and set a $28.00 price objective on the stock. in a research report on Thursday, July 24th. Baird R W raised STMicroelectronics from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 22nd. Finally, TD Cowen lowered their price target on shares of STMicroelectronics from $34.00 to $27.00 and set a "hold" rating on the stock in a report on Friday, July 25th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $32.06.

STMicroelectronics Price Performance

The company has a debt-to-equity ratio of 0.11, a current ratio of 2.74 and a quick ratio of 1.96. The firm has a market capitalization of $25.65 billion, a P/E ratio of 41.38, a PEG ratio of 4.61 and a beta of 1.62. The company's 50 day moving average price is $27.24 and its 200 day moving average price is $25.97.

STMicroelectronics (NYSE:STM - Get Free Report) last released its earnings results on Thursday, July 24th. The semiconductor producer reported $0.06 earnings per share for the quarter, missing analysts' consensus estimates of $0.10 by ($0.04). The firm had revenue of $2.77 billion for the quarter, compared to the consensus estimate of $2.71 billion. STMicroelectronics had a return on equity of 4.55% and a net margin of 5.49%. STMicroelectronics has set its Q3 2025 guidance at EPS. As a group, sell-side analysts anticipate that STMicroelectronics N.V. will post 0.85 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in STM. Caldwell Trust Co bought a new stake in shares of STMicroelectronics in the second quarter worth about $91,000. Orion Porfolio Solutions LLC increased its position in shares of STMicroelectronics by 27.2% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 14,295 shares of the semiconductor producer's stock worth $435,000 after purchasing an additional 3,053 shares during the last quarter. Evergreen Capital Management LLC acquired a new stake in STMicroelectronics in the second quarter valued at $436,000. 44 Wealth Management LLC bought a new position in STMicroelectronics during the second quarter worth about $744,000. Finally, Rakuten Securities Inc. boosted its holdings in shares of STMicroelectronics by 132.7% during the second quarter. Rakuten Securities Inc. now owns 2,916 shares of the semiconductor producer's stock worth $89,000 after acquiring an additional 1,663 shares during the period. Institutional investors and hedge funds own 5.05% of the company's stock.

STMicroelectronics Company Profile

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.