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

STMicroelectronics (NYSE:STM)’s share price gapped down prior to trading on Monday . The stock had previously closed at $26.29, but opened at $25.45. STMicroelectronics shares last traded at $25.35, with a volume of 744,993 shares trading hands.

Analysts Set New Price Targets

A number of brokerages recently issued reports on STM. StockNews.com downgraded STMicroelectronics from a “buy” rating to a “hold” rating in a research report on Thursday, September 19th. Susquehanna reissued a “positive” rating and issued a $33.00 target price on shares of STMicroelectronics in a research report on Thursday, November 21st. Craig Hallum lowered their price target on STMicroelectronics from $42.00 to $36.00 and set a “buy” rating for the company in a research report on Thursday, October 31st. Morgan Stanley cut STMicroelectronics from an “equal weight” rating to an “underweight” rating in a research note on Monday, November 4th. Finally, BNP Paribas assumed coverage on STMicroelectronics in a report on Tuesday, December 3rd. They set a “neutral” rating and a $28.00 target price for the company. One analyst has rated the stock with a sell rating, six have given a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, STMicroelectronics currently has a consensus rating of “Moderate Buy” and a consensus target price of $36.26.

STMicroelectronics Price Performance

The stock’s 50 day moving average is $26.56 and its two-hundred day moving average is $31.93. The stock has a market capitalization of $23.37 billion, a PE ratio of 10.64, a price-to-earnings-growth ratio of 3.20 and a beta of 1.53. The company has a debt-to-equity ratio of 0.12, a current ratio of 2.84 and a quick ratio of 2.16.

STMicroelectronics (NYSE:STM) last announced its quarterly earnings data on Thursday, October 31st. The semiconductor producer reported $0.37 EPS for the quarter, beating analysts’ consensus estimates of $0.33 by $0.04. The company had revenue of $3.25 billion for the quarter, compared to the consensus estimate of $3.27 billion. STMicroelectronics had a net margin of 16.11% and a return on equity of 13.29%. The company’s quarterly revenue was down 26.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.16 EPS. As a group, sell-side analysts forecast that STMicroelectronics will post 1.64 earnings per share for the current fiscal year.

STMicroelectronics Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 1st. Stockholders of record on Tuesday, March 25th will be given a dividend of $0.09 per share. The ex-dividend date is Tuesday, March 25th. This represents a $0.36 annualized dividend and a dividend yield of 1.39%. STMicroelectronics’s dividend payout ratio is currently 12.35%.

Institutional Trading of STMicroelectronics

Several institutional investors have recently modified their holdings of STM. Wilmington Savings Fund Society FSB acquired a new stake in shares of STMicroelectronics in the 3rd quarter valued at about $186,000. TD Private Client Wealth LLC grew its position in shares of STMicroelectronics by 108.3% during the third quarter. TD Private Client Wealth LLC now owns 1,556 shares of the semiconductor producer’s stock worth $46,000 after acquiring an additional 809 shares during the last quarter. Main Management ETF Advisors LLC acquired a new position in shares of STMicroelectronics in the 3rd quarter valued at $1,500,000. Two Sigma Advisers LP boosted its stake in STMicroelectronics by 674.2% during the 3rd quarter. Two Sigma Advisers LP now owns 1,396,700 shares of the semiconductor producer’s stock worth $41,524,000 after purchasing an additional 1,216,300 shares during the period. Finally, Stifel Financial Corp grew its position in STMicroelectronics by 0.7% during the 3rd quarter. Stifel Financial Corp now owns 68,885 shares of the semiconductor producer’s stock worth $2,048,000 after purchasing an additional 493 shares during the last quarter. Hedge funds and other institutional investors own 5.05% of the company’s stock.

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.