STMicroelectronics (NYSE:STM) Shares Gap Up - Here's Why

STMicroelectronics (NYSE:STM - Get Free Report)'s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $24.41, but opened at $25.73. STMicroelectronics shares last traded at $25.33, with a volume of 1,091,013 shares traded.

Analyst Upgrades and Downgrades

STM has been the topic of a number of analyst reports. Sanford C. Bernstein lowered STMicroelectronics from an "outperform" rating to a "market perform" rating and lowered their price objective for the company from $33.00 to $26.00 in a report on Wednesday, February 5th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of STMicroelectronics in a research report on Friday, April 25th. Morgan Stanley raised STMicroelectronics from an "underweight" rating to an "equal weight" rating in a research report on Thursday, February 13th. Dbs Bank lowered shares of STMicroelectronics from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 28th. Finally, Susquehanna reduced their price target on shares of STMicroelectronics from $33.00 to $28.00 and set a "positive" rating for the company in a report on Friday, January 31st. One research analyst has rated the stock with a sell rating, ten have issued a hold rating, four have given a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $30.97.

STMicroelectronics Stock Up 1.7%

The company has a market cap of $22.83 billion, a P/E ratio of 15.31, a PEG ratio of 1.16 and a beta of 1.53. The company has a debt-to-equity ratio of 0.11, a current ratio of 3.11 and a quick ratio of 2.37. The business's 50 day moving average price is $22.60 and its 200-day moving average price is $24.21.

STMicroelectronics (NYSE:STM - Get Free Report) last announced its earnings results on Thursday, April 24th. The semiconductor producer reported $0.07 earnings per share for the quarter, beating analysts' consensus estimates of $0.05 by $0.02. STMicroelectronics had a return on equity of 8.92% and a net margin of 11.74%. The company had revenue of $2.52 billion during the quarter, compared to analyst estimates of $2.55 billion. On average, analysts anticipate that STMicroelectronics will post 0.85 earnings per share for the current fiscal year.

STMicroelectronics Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 24th will be paid a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a dividend yield of 1.42%. The ex-dividend date of this dividend is Tuesday, March 24th. STMicroelectronics's dividend payout ratio is presently 25.42%.

Institutional Trading of STMicroelectronics

Several hedge funds have recently modified their holdings of the stock. Blue Trust Inc. raised its position in STMicroelectronics by 15.4% in the 4th quarter. Blue Trust Inc. now owns 11,159 shares of the semiconductor producer's stock worth $279,000 after purchasing an additional 1,491 shares during the last quarter. Hantz Financial Services Inc. bought a new stake in shares of STMicroelectronics during the fourth quarter worth $1,365,000. Crews Bank & Trust acquired a new position in shares of STMicroelectronics during the fourth quarter valued at $70,000. Clear Creek Financial Management LLC acquired a new position in shares of STMicroelectronics during the fourth quarter valued at $468,000. Finally, Newbridge Financial Services Group Inc. bought a new position in STMicroelectronics in the fourth quarter valued at about $31,000. 5.05% of the stock is owned by institutional investors.

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.