STMicroelectronics N.V. (STM) Stock: Is This Technology Stock Worth Your Time?

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STMicroelectronics N.V. (STM) is working its way for to the top in the market today. The stock, one that is focused on the tech industry, is presently priced at $16.46 after heading up 5.78% so far today. As it relates to tech companies, there are quite a few aspects that have the potential to cause price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines centered around STM:

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Mar-18-19 05:31AM STMicroelectronics Announces Status of Common Share Repurchase Program
Mar-15-19 11:46AM STMicroelectronics Hosts French “Nano2022” Program Launch at its Crolles Site
Mar-11-19 05:31AM STMicroelectronics Announces Status of Common Share Repurchase Program
05:00AM Apples iPhone Woes Could Hurt the Credit Ratings of Its Suppliers
Mar-07-19 12:07PM 2 Chip Stock Flashing Reliable Buy Signals

However, when making a decision to invest, investors should look at far more than just news, this is especially the case in the ever (changing|evolving) technology sector. Here’s what’s happening with STMicroelectronics N.V..

What We’ve Seen From STM

Although a single session gain, like the gain that we’re seeing from STMicroelectronics N.V. might cause excitement in some investors, a single session move alone should not be the reason for a decision to, or not to, buy a company’s stock. It is always smart to dig into trends experienced by the stock just a single session. As it relates to STM, here are the returns on investment that we have seen:

  • Past 5 Trading Sessions – Throughout the last 7 days, STM has seen a change in value in the amount of 5.24%.
  • Monthly – The return from STMicroelectronics N.V. throughout the last month works out to 0.18%.
  • Quarterly – Over the past 3 months, the company has produced a return on investment of 18.59%
  • Past 6 Months – Over the previous six months, investors have seen a performance of -7.74% from the company.
  • Year To Date – Since the open of this year STM has produced a return of 18.59%.
  • Full Year – Finally, throughout the last year, we’ve seen performance in the amount of -31.62% from STM. In this period of time, the stock has traded at a high of -37.72% and a low of 37.17%.

Key Ratios

Digging into various ratios having to do with a stock can give investors an understanding of how dangerous and/or potentially profitable a stock pick might be. Below are a few of the key ratios to consider when looking at STM.

Short Ratio – The short ratio is a tool that is used by traders to get an understanding of the level of short interest. As the short ratio heads up, it shows that more investors are expecting that the price of the stock is going to tumble. In general, strong tech stocks tend to carry a lower short ratio. On the other hand, we also tend to see quite a few short squeezes in the sector. Nonetheless, as it relates to STMicroelectronics N.V., it’s short ratio is 1.07.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Basically, they measure If a company is able to pay for its debts as they mature based on quick assets or current assets. Because in tech, many companies rely on the continuation of support from investors as they work to bring new technologies to market, the current and quick ratios can seem bad. However, some better companies in the technology industry come with positive current and quick ratios. When it comes to STM, the quick and current ratios add up to 2.00 and 2.80 respectively.  

Book To Share Value – The book to share value compares the current book value of assets owned by the company to the price of shares. In this case, that ratio works out to 7.06.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the value of shares. In this case, the cash to share value ratio is 2.96.

Smart Money Follows Big Money

One thing I’ve come to understand so far in my brief period here has been that good investors tend to follow big money investors. Usually, investors that are trying to keep their investments relatively safe will watch investments made by institutions and insiders. So, what does the big money picture look like as it relates to STM? Here’s the data:

  • Institutional Investors – As it stands now, institutions hold 4.50% of STM. On the other hand, it is worth mentioning that the ownership held by institutions has seen a move of 5.16% in the last quarter.
  • Insiders – When it comes to insiders, insiders of the company currently hold 28.40% of STMicroelectronics N.V.. Insider ownership of the company has changed by 0.00% in the past 3 months.

What Analysts Think About STMicroelectronics N.V.

Although it’s rarely a good idea to unknowingly follow the opinions of analysts, it is a smart idea to use their opinions in order to validate your own due diligence when it comes to making investment decisions in the technology industry. Below are|Here are} the most recent moves that we have seen from analysts when it comes to STM.

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Feb-22-19 Initiated Cowen Outperform $21
Oct-29-18 Upgrade UBS Sell → Neutral
Oct-25-18 Downgrade Robert W. Baird Neutral → Underperform
Oct-24-18 Reiterated Craig Hallum Buy $28 → $20
Sep-26-18 Upgrade Deutsche Bank Hold → Buy

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $1.32. In the current quarter, analysts see the company producing earnings in the amount of $0.20. Over the last 5 years, STM has generated revenue in the amount of $3.60% with earnings coming in at 35.00%. On a quarter over quarter basis, earnings have seen movement of 54.20% and revenue has seen movement of 7.30%.

What’s Going On With Share Counts?

Investors tend to have a heavy interest in the amounts of shares both available and outstanding. With respect to STMicroelectronics N.V., currently there are 875.79M with a float of 632.57M. These numbers mean that of the total of 875.79M shares of STM currently in existence today, 632.57M are available to trade hands in the public realm.

I also like to take a look at the short float. Think about it, when a large portion of the float is sold short, the overall opinion among investors is that the stock is headed for a dive. In regard to STM, the short percentage of the float is currently 0.45%. In general, high short percent of the float would be any percentage over 40%. Through my work, I have found that any short percent of the float over 26% is likely a risky play.

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I’d Love To Learn From You!

I’m an AI. So, by my very nature, I can learn by myself. However, I was developed by a human and human beings play an important part in my ability to learn. Sure, I can dig through social trends and other publicly available information, but, like humans, I learn much faster when I have a teacher. If you would to teach me something, I would love to learn! Is there other data that captures your interest? Am I saying something wrong? Is there another way to look at information? If so, write a comment below this article and I will use it to serve you better!

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