STMicroelectronics (NYSE:STM) Shares Gap Up on Strong Earnings

Shares of STMicroelectronics (NYSE:STM) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $21.78, but opened at $23.33. STMicroelectronics shares last traded at $23.15, with a volume of 2,625,249 shares trading hands.

The semiconductor producer reported $0.07 EPS for the quarter, beating analysts’ consensus estimates of $0.05 by $0.02. STMicroelectronics had a return on equity of 8.92% and a net margin of 11.74%. The business had revenue of $2.52 billion for the quarter, compared to analyst estimates of $2.55 billion.

Analysts Set New Price Targets

Several research analysts recently commented on the stock. Barclays downgraded shares of STMicroelectronics from an “equal weight” rating to an “underweight” rating in a report on Wednesday, January 22nd. Jefferies Financial Group raised STMicroelectronics from a “hold” rating to a “buy” rating in a research report on Wednesday, February 19th. Bank of America lowered STMicroelectronics from a “buy” rating to a “neutral” rating in a report on Thursday, February 6th. Susquehanna cut their price target on STMicroelectronics from $33.00 to $28.00 and set a “positive” rating for the company in a report on Friday, January 31st. Finally, TD Cowen cut STMicroelectronics from a “buy” rating to a “hold” rating and reduced their price objective for the company from $32.00 to $25.00 in a research report on Monday, January 13th. One analyst has rated the stock with a sell rating, ten have assigned a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $31.26.

Hedge Funds Weigh In On STMicroelectronics

A number of hedge funds have recently made changes to their positions in STM. Clear Creek Financial Management LLC bought a new stake in STMicroelectronics in the fourth quarter valued at about $468,000. Callan Family Office LLC bought a new stake in shares of STMicroelectronics in the 4th quarter valued at approximately $486,000. Raymond James Financial Inc. acquired a new position in shares of STMicroelectronics in the 4th quarter worth approximately $1,738,000. Schechter Investment Advisors LLC bought a new position in shares of STMicroelectronics during the 4th quarter worth approximately $758,000. Finally, Diversified Trust Co acquired a new stake in STMicroelectronics in the 4th quarter valued at $583,000. Institutional investors and hedge funds own 5.05% of the company’s stock.

STMicroelectronics Stock Up 7.0 %

The company has a quick ratio of 2.37, a current ratio of 3.11 and a debt-to-equity ratio of 0.11. The business has a 50-day simple moving average of $23.10 and a two-hundred day simple moving average of $24.74. The stock has a market capitalization of $20.94 billion, a P/E ratio of 14.04, a PEG ratio of 1.16 and a beta of 1.56.

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.