Analysts Set STMicroelectronics (NYSE:STM) Target Price at $50.75

Shares of STMicroelectronics (NYSE:STM) have been assigned a consensus rating of “Moderate Buy” from the ten ratings firms that are presently covering the stock, MarketBeat Ratings reports. Three investment analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $50.75.

Several analysts have weighed in on STM shares. StockNews.com downgraded STMicroelectronics from a “buy” rating to a “hold” rating in a research note on Friday, April 26th. Berenberg Bank upgraded STMicroelectronics from a “hold” rating to a “buy” rating in a research report on Tuesday, April 23rd. William Blair reissued a “market perform” rating on shares of STMicroelectronics in a research report on Friday, April 26th. Susquehanna reaffirmed a “positive” rating and issued a $55.00 price objective on shares of STMicroelectronics in a report on Monday, April 8th. Finally, HSBC began coverage on shares of STMicroelectronics in a research note on Thursday, February 22nd. They issued a “buy” rating on the stock.

STMicroelectronics Stock Performance

STM opened at $40.34 on Tuesday. The company has a market cap of $36.42 billion, a P/E ratio of 10.34, a price-to-earnings-growth ratio of 3.76 and a beta of 1.66. The company has a quick ratio of 2.58, a current ratio of 3.34 and a debt-to-equity ratio of 0.17. The firm’s 50-day moving average price is $42.83 and its 200-day moving average price is $44.38. STMicroelectronics has a 52-week low of $37.21 and a 52-week high of $55.85.

STMicroelectronics (NYSE:STM) last posted its quarterly earnings results on Thursday, April 25th. The semiconductor producer reported $0.54 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.59 by ($0.05). The company had revenue of $3.47 billion during the quarter, compared to analysts’ expectations of $3.61 billion. STMicroelectronics had a return on equity of 22.95% and a net margin of 22.30%. The company’s quarterly revenue was down 18.4% on a year-over-year basis. During the same period in the prior year, the business posted $1.10 EPS. As a group, equities analysts anticipate that STMicroelectronics will post 2.13 EPS for the current fiscal year.

STMicroelectronics Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 2nd. Investors of record on Tuesday, June 25th will be paid a $0.09 dividend. This is a boost from STMicroelectronics’s previous quarterly dividend of $0.06. This represents a $0.36 annualized dividend and a dividend yield of 0.89%. The ex-dividend date of this dividend is Tuesday, June 25th. STMicroelectronics’s payout ratio is currently 5.13%.

Institutional Trading of STMicroelectronics

A number of hedge funds have recently added to or reduced their stakes in the company. Thomas J. Herzfeld Advisors Inc. lifted its position in shares of STMicroelectronics by 548.4% during the 3rd quarter. Thomas J. Herzfeld Advisors Inc. now owns 590 shares of the semiconductor producer’s stock valued at $25,000 after buying an additional 499 shares in the last quarter. Mather Group LLC. acquired a new stake in shares of STMicroelectronics in the first quarter valued at about $28,000. Huntington National Bank grew its position in shares of STMicroelectronics by 112.7% in the third quarter. Huntington National Bank now owns 689 shares of the semiconductor producer’s stock valued at $30,000 after purchasing an additional 365 shares during the period. Headlands Technologies LLC purchased a new stake in shares of STMicroelectronics during the third quarter worth about $30,000. Finally, Spire Wealth Management raised its position in shares of STMicroelectronics by 125.0% during the 3rd quarter. Spire Wealth Management now owns 720 shares of the semiconductor producer’s stock worth $31,000 after purchasing an additional 400 shares during the last quarter. 5.05% of the stock is owned by hedge funds and other institutional investors.

About STMicroelectronics

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.