STMicroelectronics (NYSE:STM) Shares Gap Down – Time to Sell?

STMicroelectronics N.V. (NYSE:STM)’s stock price gapped down prior to trading on Wednesday. The stock had previously closed at $58.72, but opened at $55.24. STMicroelectronics shares last traded at $56.4070, with a volume of 2,610,642 shares traded.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on STM. The Goldman Sachs Group dropped their price target on STMicroelectronics from $67.50 to $60.50 and set a “neutral” rating on the stock in a research report on Monday, July 27th. Craig Hallum reiterated a “buy” rating and issued a $70.00 price objective on shares of STMicroelectronics in a report on Thursday, July 23rd. Mizuho lowered their price objective on STMicroelectronics from $84.00 to $80.00 and set an “outperform” rating for the company in a research report on Friday, July 24th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of STMicroelectronics in a research report on Thursday, June 11th. Finally, TD Cowen reiterated a “hold” rating on shares of STMicroelectronics in a research note on Monday, July 13th. Seven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $76.17.

STMicroelectronics Price Performance

The company has a quick ratio of 2.08, a current ratio of 2.78 and a debt-to-equity ratio of 0.16. The firm has a market capitalization of $49.99 billion, a PE ratio of 109.32 and a beta of 1.96. The firm’s fifty day simple moving average is $52.09 and its 200-day simple moving average is $56.22.

STMicroelectronics (NYSE:STM) last posted its quarterly earnings results on Friday, July 24th. The semiconductor producer reported $0.31 EPS for the quarter, beating analysts’ consensus estimates of $0.26 by $0.05. The firm had revenue of $3.49 billion for the quarter, compared to analysts’ expectations of $3.46 billion. STMicroelectronics had a net margin of 3.56% and a return on equity of 4.30%. On average, research analysts forecast that STMicroelectronics N.V. will post 1.3 earnings per share for the current fiscal year.

Institutional Trading of STMicroelectronics

Several institutional investors have recently added to or reduced their stakes in the business. Eastern Bank increased its holdings in shares of STMicroelectronics by 2.9% in the 3rd quarter. Eastern Bank now owns 7,046 shares of the semiconductor producer’s stock worth $376,000 after purchasing an additional 196 shares in the last quarter. Silverleafe Capital Partners LLC bought a new position in shares of STMicroelectronics during the third quarter valued at $1,113,000. Confluence Investment Management LLC purchased a new stake in shares of STMicroelectronics during the third quarter valued at $1,334,000. QRG Capital Management Inc. boosted its position in shares of STMicroelectronics by 173.0% during the second quarter. QRG Capital Management Inc. now owns 39,103 shares of the semiconductor producer’s stock valued at $2,928,000 after buying an additional 24,780 shares during the last quarter. Finally, Anchor Investment Management LLC bought a new stake in STMicroelectronics in the 2nd quarter worth about $37,000. 5.05% of the stock is currently owned by hedge funds and other institutional investors.

About STMicroelectronics

STMicroelectronics N.V. (NYSE: STM) is a global semiconductor company that designs, develops, manufactures and markets a broad range of electronic components and solutions. Its products support applications in automotive, industrial, personal electronics, communications infrastructure and other technology markets.

The company’s portfolio includes microcontrollers, microprocessors, analog and mixed-signal integrated circuits, power semiconductors, sensors, MEMS devices, connectivity products and embedded-processing solutions.