STMicroelectronics (NYSE:STM) Upgraded to “Buy” at Berenberg Bank

Berenberg Bank upgraded shares of STMicroelectronics (NYSE:STM) from a hold rating to a buy rating in a research note issued to investors on Tuesday morning, Marketbeat reports.

A number of other analysts have also recently commented on the stock. HSBC initiated coverage on shares of STMicroelectronics in a report on Thursday, February 22nd. They set a buy rating on the stock. Susquehanna reaffirmed a positive rating and set a $55.00 target price on shares of STMicroelectronics in a research note on Monday, April 8th. StockNews.com lowered shares of STMicroelectronics from a strong-buy rating to a buy rating in a report on Wednesday, January 31st. Finally, Craig Hallum cut their price target on STMicroelectronics from $50.00 to $48.00 and set a buy rating on the stock in a research note on Thursday, January 25th. Two equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of Moderate Buy and a consensus price target of $50.75.

STMicroelectronics Price Performance

Shares of NYSE STM opened at $39.99 on Tuesday. The company has a debt-to-equity ratio of 0.16, a current ratio of 3.17 and a quick ratio of 2.44. STMicroelectronics has a 1 year low of $37.21 and a 1 year high of $55.85. The company’s 50-day moving average is $43.94 and its 200 day moving average is $44.61. The stock has a market capitalization of $36.10 billion, a P/E ratio of 8.97, a P/E/G ratio of 2.58 and a beta of 1.69.

STMicroelectronics (NYSE:STM) last announced its earnings results on Thursday, January 25th. The semiconductor producer reported $1.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.95 by $0.19. The firm had revenue of $4.28 billion during the quarter, compared to analyst estimates of $4.08 billion. STMicroelectronics had a return on equity of 27.70% and a net margin of 24.36%. The business’s revenue was down 3.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.32 EPS. On average, sell-side analysts expect that STMicroelectronics will post 2.99 earnings per share for the current year.

STMicroelectronics Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, July 2nd. Stockholders of record on Tuesday, June 25th will be issued a dividend of $0.09 per share. This is a boost from STMicroelectronics’s previous quarterly dividend of $0.06. The ex-dividend date of this dividend is Tuesday, June 25th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.90%. STMicroelectronics’s dividend payout ratio is presently 4.48%.

Hedge Funds Weigh In On STMicroelectronics

Hedge funds have recently added to or reduced their stakes in the company. Blue Trust Inc. increased its holdings in shares of STMicroelectronics by 11.2% in the 4th quarter. Blue Trust Inc. now owns 2,701 shares of the semiconductor producer’s stock worth $135,000 after purchasing an additional 272 shares in the last quarter. SG Americas Securities LLC bought a new stake in STMicroelectronics in the 4th quarter worth about $2,141,000. FMR LLC increased its holdings in STMicroelectronics by 27.9% in the 3rd quarter. FMR LLC now owns 589,282 shares of the semiconductor producer’s stock worth $25,433,000 after buying an additional 128,707 shares in the last quarter. Modera Wealth Management LLC raised its position in STMicroelectronics by 5.7% in the 3rd quarter. Modera Wealth Management LLC now owns 110,423 shares of the semiconductor producer’s stock worth $4,766,000 after buying an additional 5,957 shares during the last quarter. Finally, American Century Companies Inc. lifted its stake in STMicroelectronics by 8.7% during the 3rd quarter. American Century Companies Inc. now owns 431,652 shares of the semiconductor producer’s stock valued at $18,630,000 after acquiring an additional 34,443 shares during the period. 5.05% of the stock is currently owned by hedge funds and other institutional investors.

STMicroelectronics Company Profile

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.