Zacks Investment Research Lowers STMicroelectronics (NYSE:STM) to Hold

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Zacks Investment Research downgraded shares of STMicroelectronics (NYSE:STM) from a buy rating to a hold rating in a research note released on Tuesday, Zacks.com reports.

According to Zacks, “STMicroelectronics is a global independent semiconductor company which designs, develops, manufactures and markets a broad range of semiconductor integrated circuits and discrete devices used in a wide variety of microelectronic applications, including telecommunications systems, computer systems, consumer products, automotive products and industrial automation and control systems. “

A number of other research firms also recently commented on STM. Canaccord Genuity increased their price objective on shares of STMicroelectronics from $32.00 to $36.00 and gave the company a buy rating in a report on Friday, July 24th. Deutsche Bank restated a buy rating on shares of STMicroelectronics in a report on Friday, July 24th. Cowen raised their price target on shares of STMicroelectronics from $30.00 to $34.00 and gave the stock an outperform rating in a report on Tuesday, July 14th. Goldman Sachs Group downgraded shares of STMicroelectronics from a neutral rating to a sell rating in a report on Thursday, April 30th. Finally, JPMorgan Chase & Co. reaffirmed a neutral rating on shares of STMicroelectronics in a research report on Friday, July 24th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and ten have given a buy rating to the company’s stock. The stock has a consensus rating of Buy and an average target price of $32.34.

Shares of STM stock traded down $0.21 during mid-day trading on Tuesday, hitting $28.54. 50,037 shares of the stock were exchanged, compared to its average volume of 2,725,801. STMicroelectronics has a 52-week low of $14.67 and a 52-week high of $31.98. The company has a quick ratio of 1.43, a current ratio of 2.09 and a debt-to-equity ratio of 0.16. The firm has a fifty day moving average of $28.86 and a 200 day moving average of $26.08. The company has a market cap of $26.63 billion, a PE ratio of 26.62, a price-to-earnings-growth ratio of 6.92 and a beta of 1.43.

STMicroelectronics (NYSE:STM) last released its quarterly earnings data on Thursday, July 23rd. The semiconductor producer reported $0.10 EPS for the quarter, beating the Zacks’ consensus estimate of $0.08 by $0.02. The company had revenue of $2.09 billion during the quarter, compared to the consensus estimate of $1.99 billion. STMicroelectronics had a net margin of 10.14% and a return on equity of 13.98%. STMicroelectronics’s quarterly revenue was down 4.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.18 EPS. Equities analysts predict that STMicroelectronics will post 0.85 EPS for the current year.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Amundi Pioneer Asset Management Inc. purchased a new stake in STMicroelectronics during the first quarter worth about $7,630,000. Raymond James Financial Services Advisors Inc. grew its stake in STMicroelectronics by 57.6% during the first quarter. Raymond James Financial Services Advisors Inc. now owns 26,956 shares of the semiconductor producer’s stock worth $576,000 after buying an additional 9,851 shares during the period. Ingalls & Snyder LLC purchased a new stake in STMicroelectronics during the first quarter worth approximately $753,000. Signaturefd LLC grew its stake in STMicroelectronics by 10.6% during the first quarter. Signaturefd LLC now owns 7,276 shares of the semiconductor producer’s stock worth $155,000 after buying an additional 700 shares during the period. Finally, Envestnet Asset Management Inc. boosted its stake in shares of STMicroelectronics by 122.7% in the first quarter. Envestnet Asset Management Inc. now owns 117,901 shares of the semiconductor producer’s stock valued at $2,520,000 after purchasing an additional 64,958 shares during the period. Institutional investors own 3.71% of the company’s stock.

STMicroelectronics Company Profile

STMicroelectronics N.V., together with its subsidiaries, develops, manufactures, and markets semiconductor products worldwide. It operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The company offers a range of products, including discrete and standard commodity components, application-specific integrated circuits, full-custom and semi-custom devices, and application-specific standard products for analog, digital, and mixed-signal applications, as well as silicon chips and smartcards.

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