Investors Purchase Large Volume of STMicroelectronics Call Options (NYSE:STM)

Key Points

• On Thursday, investors purchased 9,350 call options for STMicroelectronics, indicating a significant increase of 163% compared to the average volume.
• Institutional investors made considerable moves, with Deutsche Bank lifting its stake by 14.5% and Quantinno Capital Management increasing its position by 212.8% in the fourth quarter.
• After reporting earnings per share of $0.06, which was below expectations, STMicroelectronics set a price target at $31.00 following several upgrades from brokerages.

STMicroelectronics N.V. (NYSE:STM - Get Free Report) was the target of unusually large options trading activity on Thursday. Stock investors purchased 9,350 call options on the company. This represents an increase of approximately 163% compared to the typical volume of 3,555 call options.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. TD Cowen decreased their price objective on shares of STMicroelectronics from $34.00 to $27.00 and set a "hold" rating for the company in a report on Friday, July 25th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of STMicroelectronics in a research note on Friday, July 25th. The Goldman Sachs Group set a $26.50 price objective on STMicroelectronics and gave the company a "neutral" rating in a research note on Friday, July 25th. BNP Paribas Exane upgraded STMicroelectronics from a "neutral" rating to an "outperform" rating and set a $31.00 target price for the company in a research report on Thursday, September 4th. Finally, Oddo Bhf raised STMicroelectronics to an "outperform" rating in a research report on Wednesday, July 2nd. 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 one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $32.06.

STMicroelectronics Stock Performance

NYSE:STM traded up $0.75 during mid-day trading on Monday, hitting $28.55. The stock had a trading volume of 5,723,409 shares, compared to its average volume of 7,462,844. The company has a current ratio of 2.74, a quick ratio of 1.96 and a debt-to-equity ratio of 0.11. The company has a 50 day simple moving average of $27.24 and a 200-day simple moving average of $25.97. The stock has a market capitalization of $25.65 billion, a price-to-earnings ratio of 41.38, a P/E/G ratio of 4.61 and a beta of 1.62. STMicroelectronics has a 52 week low of $17.25 and a 52 week high of $33.47.

STMicroelectronics (NYSE:STM - Get Free Report) last issued its quarterly earnings results on Thursday, July 24th. The semiconductor producer reported $0.06 EPS for the quarter, missing analysts' consensus estimates of $0.10 by ($0.04). The business had revenue of $2.77 billion for the quarter, compared to analyst estimates of $2.71 billion. STMicroelectronics had a net margin of 5.49% and a return on equity of 4.55%. STMicroelectronics has set its Q3 2025 guidance at EPS. On average, research analysts expect that STMicroelectronics will post 0.85 earnings per share for the current fiscal year.

Institutional Investors Weigh In On STMicroelectronics

Several hedge funds and other institutional investors have recently added to or reduced their stakes in STM. Rothschild Investment LLC lifted its stake in 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 purchasing an additional 929 shares during the last quarter. Farther Finance Advisors LLC lifted its holdings in STMicroelectronics by 139.6% in the 1st quarter. Farther Finance Advisors LLC now owns 1,862 shares of the semiconductor producer's stock worth $41,000 after purchasing an additional 1,085 shares during the last quarter. Smartleaf Asset Management LLC lifted its position in STMicroelectronics by 63.1% during the 1st quarter. Smartleaf Asset Management LLC now owns 2,167 shares of the semiconductor producer's stock worth $48,000 after acquiring an additional 838 shares during the last quarter. AlphaCore Capital LLC acquired a new position in shares of STMicroelectronics during the second quarter worth approximately $57,000. Finally, IFP Advisors Inc grew its position in STMicroelectronics by 85.4% in the 2nd quarter. IFP Advisors Inc now owns 2,269 shares of the semiconductor producer's stock worth $69,000 after purchasing an additional 1,045 shares during the last quarter. Institutional investors 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.