Stock Traders Purchase Large Volume of Put Options on STMicroelectronics (NYSE:STM)

STMicroelectronics (NYSE:STM) saw some unusual options trading on Thursday. Investors acquired 4,570 put options on the stock. This represents an increase of 56% compared to the typical volume of 2,928 put options.

STMicroelectronics Price Performance

STM stock opened at $27.94 on Friday. The firm has a 50 day simple moving average of $32.26 and a two-hundred day simple moving average of $38.84. The company has a debt-to-equity ratio of 0.17, a current ratio of 3.35 and a quick ratio of 2.56. The stock has a market cap of $25.24 billion, a PE ratio of 7.16, a P/E/G ratio of 3.35 and a beta of 1.58. STMicroelectronics has a one year low of $27.44 and a one year high of $51.27.

STMicroelectronics (NYSE:STM) last released its earnings results on Thursday, July 25th. The semiconductor producer reported $0.38 EPS for the quarter, beating analysts’ consensus estimates of $0.34 by $0.04. STMicroelectronics had a return on equity of 18.18% and a net margin of 19.68%. The business had revenue of $3.23 billion for the quarter, compared to analysts’ expectations of $3.55 billion. During the same quarter in the prior year, the firm earned $1.06 earnings per share. The firm’s revenue was down 25.3% on a year-over-year basis. On average, analysts predict that STMicroelectronics will post 1.66 EPS for the current fiscal year.

STMicroelectronics Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, December 27th. Shareholders of record on Tuesday, December 17th will be paid a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 1.29%. The ex-dividend date of this dividend is Tuesday, December 17th. STMicroelectronics’s dividend payout ratio is currently 7.69%.

Analysts Set New Price Targets

A number of research firms have weighed in on STM. Craig Hallum reduced their target price on STMicroelectronics from $48.00 to $42.00 and set a “buy” rating for the company in a report on Thursday, July 25th. StockNews.com cut shares of STMicroelectronics from a “buy” rating to a “hold” rating in a research note on Thursday. TD Cowen lowered their target price on shares of STMicroelectronics from $50.00 to $40.00 and set a “buy” rating on the stock in a research note on Friday, July 26th. The Goldman Sachs Group raised shares of STMicroelectronics from a “sell” rating to a “neutral” rating and raised their price target for the company from $35.50 to $45.80 in a report on Tuesday, June 18th. Finally, Morgan Stanley cut shares of STMicroelectronics from an “overweight” rating to an “equal weight” rating in a report on Friday, July 26th. Five equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. Based on data from MarketBeat, STMicroelectronics has an average rating of “Moderate Buy” and a consensus price target of $43.13.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Mather Group LLC. bought a new position in shares of STMicroelectronics during the first quarter valued at about $28,000. Whittier Trust Co. of Nevada Inc. increased its stake in STMicroelectronics by 144.2% in the 2nd quarter. Whittier Trust Co. of Nevada Inc. now owns 1,243 shares of the semiconductor producer’s stock worth $49,000 after purchasing an additional 734 shares during the period. Ridgewood Investments LLC purchased a new position in STMicroelectronics in the 2nd quarter worth approximately $51,000. Principal Securities Inc. bought a new stake in STMicroelectronics in the fourth quarter valued at approximately $70,000. Finally, EverSource Wealth Advisors LLC boosted its stake in shares of STMicroelectronics by 59.4% during the fourth quarter. EverSource Wealth Advisors LLC now owns 1,663 shares of the semiconductor producer’s stock valued at $83,000 after purchasing an additional 620 shares during the period. 5.05% of the stock is currently owned by 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.