STMicroelectronics (NYSE:STM) Rating Lowered to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of STMicroelectronics (NYSE:STM) from a hold rating to a sell rating in a report released on Tuesday morning, 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 analysts also recently commented on STM. UBS Group reaffirmed a hold rating and issued a $14.00 price target on shares of STMicroelectronics in a report on Wednesday, April 10th. ValuEngine raised shares of STMicroelectronics from a sell rating to a hold rating in a report on Tuesday, April 2nd. Morgan Stanley started coverage on shares of STMicroelectronics in a report on Wednesday, June 19th. They issued an overweight rating and a $16.11 price target for the company. Kepler Capital Markets raised shares of STMicroelectronics from a hold rating to a buy rating in a report on Wednesday, May 15th. Finally, Craig Hallum reaffirmed a buy rating and issued a $22.00 price target (up previously from $20.00) on shares of STMicroelectronics in a report on Wednesday, April 24th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and eight have given a buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus price target of $17.59.

STM opened at $17.55 on Tuesday. The firm’s 50-day moving average is $17.72. STMicroelectronics has a 52 week low of $12.00 and a 52 week high of $22.34. The company has a market cap of $15.91 billion, a P/E ratio of 12.27, a PEG ratio of 3.64 and a beta of 1.37. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.77 and a quick ratio of 1.90.

STMicroelectronics (NYSE:STM) last announced its quarterly earnings results on Thursday, July 25th. The semiconductor producer reported $0.18 EPS for the quarter, missing the Zacks’ consensus estimate of $0.20 by ($0.02). STMicroelectronics had a net margin of 11.94% and a return on equity of 17.59%. The business had revenue of $2.17 billion during the quarter, compared to the consensus estimate of $2.11 billion. During the same period in the previous year, the business posted $0.29 EPS. The firm’s revenue was down 4.2% on a year-over-year basis. As a group, analysts forecast that STMicroelectronics will post 1.02 earnings per share for the current year.

A number of institutional investors have recently bought and sold shares of STM. Joseph P. Lucia & Associates LLC purchased a new stake in STMicroelectronics in the 2nd quarter worth about $30,000. Arlington Partners LLC purchased a new stake in STMicroelectronics in the 2nd quarter worth about $34,000. Penserra Capital Management LLC raised its position in STMicroelectronics by 50.0% in the 1st quarter. Penserra Capital Management LLC now owns 3,327 shares of the semiconductor producer’s stock worth $49,000 after purchasing an additional 1,109 shares during the period. Financial Gravity Wealth Inc. purchased a new stake in STMicroelectronics in the 1st quarter worth about $81,000. Finally, Signaturefd LLC raised its position in STMicroelectronics by 80.6% in the 2nd quarter. Signaturefd LLC now owns 5,896 shares of the semiconductor producer’s stock worth $104,000 after purchasing an additional 2,632 shares during the period. 3.37% of the stock is currently owned by institutional investors.

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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