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Small Cap Stock STMicroelectronics N.V. (STM) Is A Buy – Analysts

STMicroelectronics N.V. (NYSE:STM) has a beta value of 1.53 and has seen 0.86 million shares traded in the recent trading session. The company, currently valued at $38.12B, closed the recent trade at $42.35 per share which meant it lost -$0.09 on the day or -0.21% during that session. The STM stock price is -12.28% off its 52-week high price of $47.55 and 33.06% above the 52-week low of $28.35. If we look at the company’s 10-day average daily trading volume, we find that it stood at 3.0 million shares traded. The 3-month trading volume is 3.40 million shares.

The consensus among analysts is that STMicroelectronics N.V. (STM) is an Overweight stock at the moment, with a recommendation rating of 2.20. 2 analysts rate the stock as a Sell, while 5 rate it as Overweight. 7 out of 25 have rated it as a Hold, with 11 advising it as a Buy. 0 have rated the stock as Underweight. The expected earnings per share for the stock is $1.13.

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STMicroelectronics N.V. (NYSE:STM) trade information

Sporting -0.21% in the red today, the stock has traded in the green over the last five days, with the highest price hit on Tuesday, 01/24/23 when the STM stock price touched $42.35 or saw a rise of 1.53%. Year-to-date, STMicroelectronics N.V. shares have moved 19.31%, while the 5-day performance has seen it change 1.70%. Over the past 30 days, the shares of STMicroelectronics N.V. (NYSE:STM) have changed 13.11%. Short interest in the company has seen 6.09 million shares shorted with days to cover at 2.1.

Wall Street analysts have a consensus price target for the stock at $50.72, which means that the shares’ value could jump 16.5% from the levels at last check today. The projected low price target is $25.75 while the price target rests at a high of $76.90. In that case, then, we find that the latest price level in today’s session is -81.58% off the targeted high while a plunge would see the stock lose 39.2% from the levels at last check today.

STMicroelectronics N.V. (STM) estimates and forecasts

Figures show that STMicroelectronics N.V. shares have outperformed across the wider relevant industry. The company’s shares have gained 21.05% over the past 6 months, with this year growth rate of 85.19%, compared to -14.70% for the industry. Other than that, the company has, however, increased its growth outlook for the 2023 fiscal year revenue. Growth estimates for the current quarter are 37.80% and 11.40% for the next quarter. Revenue growth from the last financial year stood is estimated to be 26.30%.

8 analysts offering their estimates for the company have set an average revenue estimate of $4.41 billion for the current quarter. 8 have an estimated revenue figure of $3.92 billion for the next quarter concluding in Mar 2023. Year-ago sales stood $3.56 billion and $3.55 billion respectively for this quarter and the next, and analysts expect sales will grow by 23.90% for the current quarter and 10.70% for the next.

If we evaluate the company’s growth over the last 5-year and for the next 5-year period, we find that annual earnings growth was 63.20% over the past 5 years. Earnings growth for 2023 is a modest 79.30% while over the next 5 years, the company’s earnings are expected to increase by 5.00%.

STM Dividends

STMicroelectronics N.V. is expected to release its next earnings report between November 28 and November 29 this year, and investors are excited at the prospect of better dividends despite the company’s debt issue. The forward dividend is 0.30 at a share yield of 0.71%. The company’s dividend yield has gone up over the past 12 months.

STMicroelectronics N.V. (NYSE:STM)’s Major holders

Insiders own 0.00% of the company shares, while shares held by institutions stand at 6.69% with a share float percentage of 6.69%. Investors are also buoyed by the number of investors in a company, with STMicroelectronics N.V. having a total of 346 institutions that hold shares in the company. The top two institutional holders are Capital World Investors with over 8.8 million shares worth more than $372.64 million. As of Sep 29, 2022, Capital World Investors held 0.97% of shares outstanding.

The other major institutional holder is Van Eck Associates Corporation, with the holding of over 4.23 million shares as of Sep 29, 2022. The firm’s total holdings are worth over $179.09 million and represent 0.46% of shares outstanding.

Also the top two Mutual Funds that are holding company’s shares are VanEck ETF Trust-VanEck Semiconductor ETF and iShares Core MSCI EAFE ETF. As of Nov 29, 2022, the former fund manager holds about 0.48% shares in the company for having 4.35 million shares of worth $184.07 million while later fund manager owns 3.63 million shares of worth $153.62 million as of Dec 30, 2022, which makes it owner of about 0.40% of company’s outstanding stock.

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