TD Cowen Issues Pessimistic Forecast for STMicroelectronics (NYSE:STM) Stock Price

Key Points

• TD Cowen has lowered the price target for STMicroelectronics from $34.00 to $27.00, maintaining a "hold" rating on the stock, which indicates a potential upside of just 0.63% from its previous close.
• The semiconductor company reported earnings of $0.06 per share for the last quarter, missing the consensus estimate of $0.10, despite exceeding revenue expectations with $2.77 billion.
• Institutional investors have shown strong activity, with several firms significantly increasing their stakes in STMicroelectronics, which currently holds a market cap of $24.10 billion.

STMicroelectronics (NYSE:STM - Free Report) had its price target reduced by TD Cowen from $34.00 to $27.00 in a report released on Friday, MarketBeat reports. They currently have a hold rating on the semiconductor producer's stock.

STM has been the topic of several other research reports. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of STMicroelectronics in a research report on Friday, April 25th. Robert W. Baird raised shares of STMicroelectronics from a "neutral" rating to an "outperform" rating and boosted their price objective for the stock from $23.00 to $50.00 in a research note on Tuesday, July 22nd. Baird R W upgraded STMicroelectronics from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 22nd. Craig Hallum lowered shares of STMicroelectronics from a "buy" rating to a "hold" rating and set a $28.00 price objective on the stock. in a report on Thursday, July 24th. Finally, Susquehanna lifted their price target on STMicroelectronics from $30.00 to $40.00 and gave the company a "positive" rating in a research report on Tuesday, July 22nd. One investment analyst has rated the stock with a sell rating, ten have issued a hold rating, five have assigned a buy rating and two have given a strong buy rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $32.21.

STMicroelectronics Stock Performance

Shares of STMicroelectronics stock traded down $0.14 on Friday, hitting $26.56. 4,072,868 shares of the company's stock were exchanged, compared to its average volume of 7,619,944. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.96 and a current ratio of 2.74. The company has a 50-day simple moving average of $29.23 and a 200-day simple moving average of $25.52. The stock has a market capitalization of $23.85 billion, a PE ratio of 38.53, a PEG ratio of 3.84 and a beta of 1.60. STMicroelectronics has a 1 year low of $17.25 and a 1 year high of $33.89.

STMicroelectronics (NYSE:STM - Get Free Report) last issued its earnings results on Thursday, July 24th. The semiconductor producer reported $0.06 earnings per share for the quarter, missing the consensus estimate of $0.10 by ($0.04). STMicroelectronics had a return on equity of 4.55% and a net margin of 5.49%. The firm had revenue of $2.77 billion during the quarter, compared to the consensus estimate of $2.71 billion. As a group, equities analysts anticipate that STMicroelectronics will post 0.85 EPS for the current year.

STMicroelectronics Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 24th will be paid a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 1.36%. The ex-dividend date is Tuesday, March 24th. STMicroelectronics's payout ratio is currently 52.17%.

Hedge Funds Weigh In On STMicroelectronics

Several hedge funds and other institutional investors have recently added to or reduced their stakes in STM. Ritholtz Wealth Management acquired a new stake in shares of STMicroelectronics in the second quarter valued at $492,000. Sequoia Financial Advisors LLC purchased a new position in shares of STMicroelectronics in the 2nd quarter valued at about $341,000. Yousif Capital Management LLC acquired a new position in shares of STMicroelectronics during the second quarter worth about $316,000. MGO One Seven LLC purchased a new stake in shares of STMicroelectronics during the second quarter worth approximately $205,000. Finally, CWM LLC raised its holdings in STMicroelectronics by 27.5% in the second quarter. CWM LLC now owns 2,680 shares of the semiconductor producer's stock valued at $82,000 after acquiring an additional 578 shares in the last quarter. Hedge funds and other 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.