Why Should You Put STMicroelectronics N.V. (NYSE: STM) On Your Portfolio?


    Grantham, Mayo, Van Otterloo & Co… recently announced the acquisition of new stake in STMicroelectronics N.V. (NYSE:STM). The institutional investor has increased its shareholding in the Technology company by 0.12% to 4.03 million shares with purchase of 4800.0 shares. This fresh investment now brings its stake to 0.44% valued currently at $110.56 million. In addition, Merrill Lynch International (Inve… raised its holdings by 0.49 million to 2.95 million shares.

    With over 3.26 million STMicroelectronics N.V. (STM) shares trading Friday and a closing price of $27.94 on the day, the dollar volume was approximately $91.08 million. The shares have shown a negative weekly performance of -5.61% and its price on 07/31/20 lost nearly -1.24%. Currently, there are 916.70M common shares owned by the public and among those 638.33M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 24 analysts who have offered their price forecasts for STM have a consensus price objective of $34.00. The analysts have set the share’s price value over the next 12 months at a high of $41.74 and a low of $20.00 should the stock experience a downside. Incidentally, analysts’ outlook for the STMicroelectronics N.V. stock is 2.20 for the next 12 months. The average price target is 8.15% above its last price level and an upside to the estimated low will see the stock lose -39.7% over that period. But an upside of 33.06% will see the stock hit the forecast high price target while mean target price for the stock is $35.33.

    The top 3 mutual fund holders in STMicroelectronics N.V. are VanEck Vectors Semiconductor ETF, Invesco Oppenheimer International, and GMO International Equity Fund. VanEck Vectors Semiconductor ETF owns 2.07 million shares of the company’s stock, all valued at over $56.61 million. Invesco Oppenheimer International sold -0.15 million shares to see its total holdings shrink to 1.85 million shares valued at over $50.68 million and representing 0.20% of the shares outstanding. GMO International Equity Fund now owns shares totaling to 0.15% of the shares outstanding.

    Shares of STMicroelectronics N.V. (NYSE: STM) opened at $28.54, up $0.25 from a prior closing price of $28.29. However, the script later closed the day at $27.94, down -1.24%. The company’s stock has a 5-day price change of -5.61% and 12.39% over the past three months. STM shares are trading 3.83% year to date (YTD), with the 12-month market performance up to 55.48% higher. It has a 12-month low price of $14.67 and touched a high of $31.98 over the same period. Currently, 3.26 million shares have been traded, compared to an average intraday trading volume of 2.35 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -3.91%, 2.15%, and 9.02% respectively.

    Institutional ownership of STMicroelectronics N.V. (NYSE: STM) shares accounts for 4.10% of the company’s 916.70M shares outstanding. Mutual fund holders own 1.61%, while other institutional holders and individual stakeholders account for 2.14% and — respectively.

    It has a market capitalization of $26.48B and a beta (3y monthly) value of 1.48. The stock’s trailing 12-month PE ratio is 26.14, while the earnings-per-share (ttm) stands at $1.07. The company has a PEG of 0.53 and a Quick Ratio of 2.20 with the debt-to-equity ratio at 0.29. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.64% over the week and 2.78% over the month.

    Analysts forecast that STMicroelectronics N.V. (STM) will achieve an EPS of $0.22 for the current quarter, $0.3 for the next quarter and $1.38 for 2021. The lowest estimate earnings-per-share for the quarter is $0.19 while analysts give the company a high EPS estimate of $0.23. Comparatively, EPS for the current quarter was $0.34 a year ago. Earnings per share for the fiscal year are expected to decrease by -18.50%, and 67.89% over the next financial year. EPS should shrink at an annualized rate of 49.00% over the next five years, compared to 51.10% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 24 brokerage firm advisors rate STMicroelectronics N.V. (STM) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 15 Wall Street analysts polled rate the stock as a buy, while 5 of the 24 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the STM, a number of firms have released research notes about the stock. Bryan Garnier stated their Buy rating for the stock in a research note on June 29, 2020, with the firm’s price target at . Craig Hallum coverage for the STMicroelectronics N.V. (STM) stock in a research note released on June 15, 2020 offered a Buy rating with a price target of $30. Citigroup was of a view on May 04, 2020 that the stock is Neutral, while Goldman gave the stock Sell rating on April 30, 2020, issuing a price target of . JP Morgan on their part issued Neutral rating on April 14, 2020.


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