STMicroelectronics N.V. (NYSE: STM) stock fell -4.90% on Wednesday to $42.16 against a previous-day closing price of $44.33. With 4.42 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.58 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $42.96 whereas the lowest price it dropped to was $41.83. The 52-week range on STM shows that it touched its highest point at $53.53 and its lowest point at $28.35 during that stretch. It currently has a 1-year price target of $55.33. With its current market cap of 38.05 billion, STM has annualized dividend of $0.24 while the current yield stands at 0.57%. Beta for the stock currently stands at 1.57.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of STM was down-trending over the past week, with a drop of -3.17%, but this was down by -6.60% over a month. Three-month performance dropped to -12.89% while six-month performance rose 11.80%. The stock gained 7.22% in the past year, while it has gained 18.53% so far this year. A look at the trailing 12-month EPS for STM yields 4.50 with Next year EPS estimates of 4.13. For the next quarter, that number is 1.08. This implies an EPS growth rate of 93.50% for this year and -2.60% for next year. EPS is expected to grow by 5.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 38.10%.
Float and Shares Shorts:
At present, 945.30 million STM shares are outstanding with a float of 661.94 million shares on hand for trading. On Apr 27, 2023, short shares totaled 8.52 million, which was 0.95% higher than short shares on Mar 30, 2023. In addition to Mr. Jean-Marc Chery as the firm’s Pres, CEO & Member of Managing Board, Mr. Lorenzo Grandi serves as its Pres of Fin., Purchasing, ERM & Resilience and CFO.
Through their ownership of 5.02% of STM’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 4.31% of STM, in contrast to 1.71% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in STM with 0.43% of the stake, Van Eck Associates Corp. holds 3,885,208 shares worth 3,885,208. A second-largest stockholder of STM, Capital Research & Management Co, holds 2,743,660 shares, controlling over 0.30% of the firm’s shares. Neuberger Berman Investment Advis is the third largest shareholder in STM, holding 2,656,907 shares or 0.29% stake. With a 0.38% stake in STM, the VanEck Vectors Semiconductor ETF is the largest stakeholder. A total of 3,476,302 shares are owned by the mutual fund manager. The iShares Semiconductor ETF, which owns about 0.26% of STM stock, is the second-largest Mutual Fund holder. It holds 2,332,823 shares valued at 100.03 million. BNP Paribas Funds – Disruptive Te holds 0.14% of the stake in STM, owning 1,298,415 shares worth 55.68 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 31, 2023, STM reported revenue of $3.84B and operating income of $1.00B. The EBITDA in the recently reported quarter was $1.30B and diluted EPS was $0.92.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for STM since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With STM analysts setting a high price target of $80.35 and a low target of $35.23, the average target price over the next 12 months is $57.60. Based on these targets, STM could surge 90.58% to reach the target high and fall by -16.44% to reach the target low. Reaching the average price target will result in a growth of 36.62% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.