STMicroelectronics (NYSE:STM) Stock Price Crosses Above 200-Day Moving Average Following Weak Earnings

STMicroelectronics N.V. (NYSE:STM) shares passed above its 200-day moving average during trading on Thursday after the company announced better than expected quarterly earnings. The stock has a 200-day moving average of $49.75 and traded as high as $50.03. STMicroelectronics shares last traded at $49.88, with a volume of 17,339,536 shares.

The semiconductor producer reported $0.37 earnings per share for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.03). The business had revenue of $3.76 billion during the quarter, compared to analyst estimates of $3.72 billion. STMicroelectronics had a return on equity of 4.30% and a net margin of 3.56%.

STMicroelectronics News Summary

Here are the key news stories impacting STMicroelectronics this week:

• Positive Sentiment: Raised near-term outlook: STMicroelectronics forecast fourth-quarter revenue of approximately $4.15 billion and a 39% gross margin, up from 37.3% in the third quarter. Management also raised its data-center revenue expectations as AI infrastructure demand accelerates. STMicroelectronics Reports Q3 2026 Financial Results
• Positive Sentiment: AI and satellite demand drove growth: Third-quarter revenue reached $3.76 billion, above estimates, while operating profit exceeded market expectations. Demand from AI data centers and satellite operators helped support a broader recovery across the business. STMicro beats Q3 profit estimates, sees Q4 sales above $4 billion
• Positive Sentiment: Heavy call-option activity signals bullish positioning: Investors purchased 40,438 call options, roughly 140% above average volume, indicating increased speculative interest in further gains.
• Neutral Sentiment: Leadership reshuffle targets future growth: Remi El-Ouazzane was appointed President and Chief Technology Officer, while Marco Cassis became President and Chief Strategic Officer. The new roles emphasize product development, long-term strategy and potential mergers and acquisitions, but the financial impact is not yet clear. STMicroelectronics Announces Updates to its Organization and Leadership Appointments
• Negative Sentiment: Profitability remains a concern: Reported EPS of $0.37 missed the $0.40 consensus estimate, and the stock’s sharp prior appreciation has prompted analysts to question whether its valuation is supported by current earnings power.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the company. Citigroup reaffirmed a “buy” rating on shares of STMicroelectronics in a research note on Wednesday, September 2nd. TD Cowen cut their price target on shares of STMicroelectronics from $55.00 to $50.00 and set a “hold” rating for the company in a report on Monday, October 19th. Weiss Ratings restated a “hold (c-)” rating on shares of STMicroelectronics in a research report on Friday, August 21st. Barclays set a $60.00 price objective on shares of STMicroelectronics in a research report on Friday, July 24th. Finally, Wall Street Zen lowered shares of STMicroelectronics from a “buy” rating to a “hold” rating in a research report on Saturday, September 19th. Seven equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $75.06.

Institutional Investors Weigh In On STMicroelectronics

A number of hedge funds have recently modified their holdings of STM. Legacy Wealth Asset Management LLC lifted its stake in shares of STMicroelectronics by 0.5% in the 2nd quarter. Legacy Wealth Asset Management LLC now owns 34,613 shares of the semiconductor producer’s stock valued at $2,592,000 after purchasing an additional 167 shares during the last quarter. Eastern Bank increased its position in shares of STMicroelectronics by 2.9% during 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 during the last quarter. Eagle Rock Investment Company LLC increased its position in shares of STMicroelectronics by 2.8% during the 3rd quarter. Eagle Rock Investment Company LLC now owns 8,147 shares of the semiconductor producer’s stock worth $435,000 after purchasing an additional 220 shares during the last quarter. GAMMA Investing LLC raised its holdings in STMicroelectronics by 8.2% in the 3rd quarter. GAMMA Investing LLC now owns 4,559 shares of the semiconductor producer’s stock valued at $243,000 after buying an additional 346 shares during the period. Finally, Frank Rimerman Advisors LLC raised its holdings in STMicroelectronics by 3.6% in the 3rd quarter. Frank Rimerman Advisors LLC now owns 10,281 shares of the semiconductor producer’s stock valued at $549,000 after buying an additional 357 shares during the period. 5.05% of the stock is currently owned by institutional investors and hedge funds.

STMicroelectronics Stock Performance

The firm’s fifty day moving average is $50.37 and its 200-day moving average is $49.75. The company has a current ratio of 2.78, a quick ratio of 2.08 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $44.80 billion, a PE ratio of 97.81 and a beta of 1.96.

About STMicroelectronics

STMicroelectronics N.V. (NYSE: STM) is a global semiconductor company that designs, develops, manufactures and markets a broad range of integrated circuits and other semiconductor products. Its offerings support applications in automotive, industrial, personal electronics, communications equipment and computer systems.

The company’s product portfolio includes microcontrollers, analog and power semiconductors, sensors, microelectromechanical systems (MEMS), connectivity products and automotive chips.