STMicroelectronics (NYSE:STM) Shares Up 5.8% - Still a Buy?

Key Points

• STMicroelectronics stock jumped 5.8% intraday to as high as $53.26 on Wednesday, with volume roughly 86% above its average and last trading around $52.71.
• Analysts have been upgrading STM (e.g., Morgan Stanley to "overweight") and ten analysts rate it Buy, giving a consensus of "Moderate Buy", though the average price target is $49.07, below the recent trading level.
• Fundamentals show strong liquidity and low leverage (current ratio 3.31, debt/equity 0.12) but modest profitability and a high valuation (Q1 EPS $0.13, net margin 1.19%, trailing P/E ≈ 329.5).

STMicroelectronics N.V. (NYSE:STM - Get Free Report)'s stock price shot up 5.8% during mid-day trading on Wednesday . The stock traded as high as $53.26 and last traded at $52.7120. 17,097,242 shares were traded during trading, an increase of 86% from the average session volume of 9,193,157 shares. The stock had previously closed at $49.81.

Analyst Ratings Changes

Several brokerages recently issued reports on STM. Morgan Stanley raised STMicroelectronics from an "equal weight" rating to an "overweight" rating in a research report on Thursday, March 26th. Weiss Ratings upgraded STMicroelectronics from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday. Robert W. Baird set a $90.00 price target on STMicroelectronics in a research note on Friday, April 24th. TD Cowen reiterated a "hold" rating on shares of STMicroelectronics in a research note on Friday, April 24th. Finally, Susquehanna boosted their price target on STMicroelectronics from $35.00 to $40.00 and gave the company a "positive" rating in a research note on Monday, February 23rd. Ten investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, STMicroelectronics currently has an average rating of "Moderate Buy" and a consensus price target of $49.07.

STMicroelectronics Stock Up 5.8%

The company has a quick ratio of 2.34, a current ratio of 3.31 and a debt-to-equity ratio of 0.12. The stock has a market cap of $47.34 billion, a PE ratio of 329.47 and a beta of 1.51. The business has a 50 day moving average price of $36.53 and a 200 day moving average price of $30.23.

STMicroelectronics (NYSE:STM - Get Free Report) last issued its earnings results on Saturday, March 28th. The semiconductor producer reported $0.13 EPS for the quarter. STMicroelectronics had a return on equity of 3.01% and a net margin of 1.19%.The firm had revenue of $3.10 billion for the quarter. Equities research analysts expect that STMicroelectronics N.V. will post 1.18 EPS for the current fiscal year.

Institutional Trading of STMicroelectronics

A number of hedge funds have recently modified their holdings of the stock. Inspire Investing LLC boosted its stake in shares of STMicroelectronics by 5.0% in the first quarter. Inspire Investing LLC now owns 10,261 shares of the semiconductor producer's stock worth $355,000 after buying an additional 488 shares during the last quarter. Smartleaf Asset Management LLC boosted its stake in shares of STMicroelectronics by 13.1% in the fourth quarter. Smartleaf Asset Management LLC now owns 4,405 shares of the semiconductor producer's stock worth $115,000 after buying an additional 509 shares during the last quarter. Earnest Partners LLC boosted its stake in shares of STMicroelectronics by 3.2% in the fourth quarter. Earnest Partners LLC now owns 17,282 shares of the semiconductor producer's stock worth $448,000 after buying an additional 534 shares during the last quarter. Vident Advisory LLC raised its holdings in STMicroelectronics by 2.5% in the 3rd quarter. Vident Advisory LLC now owns 23,196 shares of the semiconductor producer's stock worth $656,000 after purchasing an additional 573 shares during the period. Finally, Signaturefd LLC raised its holdings in STMicroelectronics by 3.4% in the 3rd quarter. Signaturefd LLC now owns 20,598 shares of the semiconductor producer's stock worth $582,000 after purchasing an additional 677 shares during the period. Hedge funds and other institutional investors own 5.05% of the company's stock.

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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