Shares of STMicroelectronics NV (NYSE:STM) traded up 10.4% during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $23.34 and last traded at $23.08. 9,177,790 shares were traded during trading, an increase of 153% from the average session volume of 3,629,230 shares. The stock had previously closed at $20.90.
The semiconductor producer reported $0.28 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.04. STMicroelectronics NV had a return on equity of 12.69% and a net margin of 7.96%. The company had revenue of $2.14 billion for the quarter, compared to the consensus estimate of $2.10 billion. During the same period last year, the business posted $0.11 EPS. The company’s revenue was up 18.9% on a year-over-year basis.
The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 26th. Stockholders of record on Tuesday, September 19th were issued a $0.06 dividend. The ex-dividend date was Monday, September 18th. This represents a $0.24 annualized dividend and a dividend yield of 1.04%. STMicroelectronics NV’s dividend payout ratio is currently 40.00%.
STM has been the subject of several recent analyst reports. Craig Hallum raised their price target on STMicroelectronics NV from $21.00 to $26.00 and gave the company a “buy” rating in a report on Thursday. Zacks Investment Research cut STMicroelectronics NV from a “buy” rating to a “hold” rating in a report on Tuesday, August 8th. J P Morgan Chase & Co raised STMicroelectronics NV from a “neutral” rating to an “overweight” rating in a report on Tuesday, July 11th. Finally, BidaskClub raised STMicroelectronics NV from a “buy” rating to a “strong-buy” rating in a report on Monday, July 31st. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, five have issued a buy rating and one has given a strong buy rating to the company. The stock presently has an average rating of “Buy” and a consensus price target of $19.88.
A number of hedge funds have recently modified their holdings of the stock. Bank of New York Mellon Corp purchased a new position in STMicroelectronics NV during the first quarter worth $210,000. Ameriprise Financial Inc. increased its position in STMicroelectronics NV by 16.7% during the first quarter. Ameriprise Financial Inc. now owns 326,884 shares of the semiconductor producer’s stock worth $5,054,000 after buying an additional 46,805 shares in the last quarter. JPMorgan Chase & Co. increased its position in STMicroelectronics NV by 1,137.8% during the first quarter. JPMorgan Chase & Co. now owns 117,885 shares of the semiconductor producer’s stock worth $1,822,000 after buying an additional 108,361 shares in the last quarter. Alliancebernstein L.P. purchased a new position in STMicroelectronics NV during the first quarter worth $3,092,000. Finally, FMR LLC purchased a new position in STMicroelectronics NV during the first quarter worth $21,932,000. 5.30% of the stock is owned by hedge funds and other institutional investors.
The company’s 50 day moving average price is $19.56 and its 200 day moving average price is $17.02. The firm has a market capitalization of $20.49 billion, a price-to-earnings ratio of 47.20 and a beta of 0.70.
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About STMicroelectronics NV
STMicroelectronics N.V. is a global semiconductor company that designs, develops, manufactures and markets a range of products, including discrete and standard commodity components, and application-specific integrated circuits (ASICs) for analog, digital and mixed-signal applications. The Company’s segments include Automotive and Discrete Group (ADG), Analog and MEMS Group (AMG), Microcontrollers and Digital ICs Group (MDG), and Others.
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