STMicroelectronics (NYSE:STM) Sets New 1-Year Low - Here's Why

STMicroelectronics (NYSE:STM - Get Free Report) shares hit a new 52-week low on Friday . The company traded as low as $27.40 and last traded at $27.40, with a volume of 57130 shares changing hands. The stock had previously closed at $27.94.

Analyst Upgrades and Downgrades

Several research analysts have commented on STM shares. TD Cowen reduced their price objective on STMicroelectronics from $50.00 to $40.00 and set a "buy" rating on the stock in a report on Friday, July 26th. StockNews.com lowered shares of STMicroelectronics from a "buy" rating to a "hold" rating in a report on Thursday, September 19th. Morgan Stanley cut shares of STMicroelectronics from an "overweight" rating to an "equal weight" rating in a report on Friday, July 26th. Craig Hallum reduced their price target on STMicroelectronics from $48.00 to $42.00 and set a "buy" rating on the stock in a research report on Thursday, July 25th. Finally, The Goldman Sachs Group upgraded shares of STMicroelectronics from a "sell" rating to a "neutral" rating and upped their price target for the company from $35.50 to $45.80 in a research note on Tuesday, June 18th. Five investment analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $43.13.

STMicroelectronics Stock Performance

The company has a market capitalization of $25.24 billion, a price-to-earnings ratio of 8.70, a price-to-earnings-growth ratio of 3.46 and a beta of 1.57. The firm has a fifty day simple moving average of $29.42 and a 200 day simple moving average of $37.03. The company has a debt-to-equity ratio of 0.17, a current ratio of 3.35 and a quick ratio of 2.56.

STMicroelectronics (NYSE:STM - Get Free Report) last issued its earnings results on Thursday, July 25th. The semiconductor producer reported $0.38 EPS for the quarter, beating analysts' consensus estimates of $0.34 by $0.04. The business had revenue of $3.23 billion during the quarter, compared to analysts' expectations of $3.55 billion. STMicroelectronics had a net margin of 19.68% and a return on equity of 18.18%. The company's quarterly revenue was down 25.3% compared to the same quarter last year. During the same period in the prior year, the business earned $1.06 earnings per share. On average, analysts anticipate that STMicroelectronics will post 1.63 earnings per share for the current fiscal year.

STMicroelectronics Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, December 27th. Stockholders of record on Tuesday, December 17th will be issued a dividend of $0.09 per share. The ex-dividend date is Tuesday, December 17th. This represents a $0.36 annualized dividend and a dividend yield of 1.29%. STMicroelectronics's dividend payout ratio is presently 9.63%.

Institutional Investors Weigh In On STMicroelectronics

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Green Alpha Advisors LLC lifted its stake in shares of STMicroelectronics by 14.9% in the 3rd quarter. Green Alpha Advisors LLC now owns 22,737 shares of the semiconductor producer's stock valued at $676,000 after purchasing an additional 2,947 shares during the last quarter. Azzad Asset Management Inc. ADV lifted its stake in STMicroelectronics by 2.9% during the 3rd quarter. Azzad Asset Management Inc. ADV now owns 84,213 shares of the semiconductor producer's stock worth $2,504,000 after acquiring an additional 2,364 shares in the last quarter. Sanctuary Advisors LLC acquired a new position in STMicroelectronics in the 2nd quarter valued at about $2,280,000. Creative Planning grew its holdings in shares of STMicroelectronics by 36.6% in the second quarter. Creative Planning now owns 59,604 shares of the semiconductor producer's stock valued at $2,341,000 after purchasing an additional 15,985 shares in the last quarter. Finally, Scientech Research LLC purchased a new position in STMicroelectronics in the 2nd quarter valued at approximately $381,000. 5.05% of the stock is currently owned by institutional investors and hedge funds.

About STMicroelectronics

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.