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

Zacks Investment Research cut shares of STMicroelectronics (NYSE:STM) from a hold rating to a sell rating in a report issued on Saturday 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. “

Other equities research analysts also recently issued research reports about the stock. Goldman Sachs Group upgraded shares of STMicroelectronics from a neutral rating to a buy rating and raised their price objective for the stock from $18.60 to $19.20 in a research note on Thursday, August 8th. Morgan Stanley started coverage on shares of STMicroelectronics in a research note on Wednesday, June 19th. They issued an overweight rating and a $16.11 price objective on the stock. Bank of America upgraded shares of STMicroelectronics from a neutral rating to a buy rating and set a $14.92 price objective on the stock in a research note on Friday, May 31st. Finally, Credit Suisse Group restated a buy rating on shares of STMicroelectronics in a research note on Tuesday, July 2nd. Two research analysts have rated the stock with a sell rating, three have given a hold rating and nine have issued a buy rating to the company’s stock. The company has an average rating of Buy and a consensus price target of $18.02.

Shares of STMicroelectronics stock opened at $19.76 on Friday. The company’s fifty day simple moving average is $18.14 and its 200-day simple moving average is $17.26. The company has a market cap of $17.82 billion, a price-to-earnings ratio of 13.82, a PEG ratio of 3.93 and a beta of 1.38. The company has a current ratio of 2.77, a quick ratio of 1.90 and a debt-to-equity ratio of 0.31. STMicroelectronics has a 1 year low of $12.00 and a 1 year high of $20.25.

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

Institutional investors and hedge funds have recently bought and sold shares of the business. Joseph P. Lucia & Associates LLC acquired a new stake in STMicroelectronics during the second quarter worth $30,000. Arlington Partners LLC acquired a new stake in STMicroelectronics during the second quarter worth $34,000. Boston Partners acquired a new stake in STMicroelectronics during the second quarter worth $38,000. Parallel Advisors LLC boosted its stake in STMicroelectronics by 555.8% during the second quarter. Parallel Advisors LLC now owns 2,361 shares of the semiconductor producer’s stock worth $42,000 after buying an additional 2,001 shares in the last quarter. Finally, Penserra Capital Management LLC boosted its stake in STMicroelectronics by 50.0% during the first quarter. Penserra Capital Management LLC now owns 3,327 shares of the semiconductor producer’s stock worth $49,000 after buying an additional 1,109 shares in the last quarter. Hedge funds and other institutional investors own 3.36% 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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