STM stock: buy or sell?

STM stock price: $19.28 -2.77% At close on September 20th, 2019

Updated on:
September 20th, 2019

2

STMicroelectronics ended today at $19.28 and dropped a terrifying -2.77%.

STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and markets semiconductor products, and subsystems and modules worldwide.

Should I buy STM stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with STMicroelectronics stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean STM will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is STMicroelectronics stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we gathered 9 ratings published for STM stock in the last 30 days.

The general sentiment of these ratings is bullish for STM stock, with 7 positive ratings.
Is STM a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-3JPMorgan Chase & Co.n/aBuy
2019-9-11Credit Suisse Groupn/aBuy
2019-9-10FinnCapn/aCorporate
2019-6-19Morgan Stanleyn/aOverweight
2019-5-31Bank of AmericaNeutralBuy
2019-5-10Deutsche Bankn/aBuy
2019-5-10Credit Suisse Groupn/aBuy
2019-2-22Cowenn/aOutperform
2019-1-24Robert W. Bairdn/aSell

STM stock analysis

Daily outlook

Shares of STMicroelectronics ended today at $19.28 and dropped a terrifying -2.77%.

STMicroelectronics ended today at $19.28 and dropped a terrifying -2.77%. On June STM price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. On May, SMA100d and SMA200d crossed up triggering a rise of 28.02%.

STM stock chart (daily)

Weekly outlook

STMicroelectronics ended this week at $19.28 and slipped a terrifying -3.79%. Late July STM plummed a bloodcurdling -9.09% in just one week. Early September STM skyrocketed a super good 7.78% in just one week.

STMicroelectronics stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Since mid June when STM stock price broke up the SMA40w line, it gained $3.58 (22.80%). Since SMA20d and SMA40w crossed up by mid May, STM price climbed $2.54 per share (15.17%).

STM stock chart (weekly)

STM stock price history

STM IPO was on December 8th, 1994 at $2.31 per share1. Since then, STM stock surged a 734.60%, with a yearly average of 30.60%. If you had invested right after STM's IPO a $1,000 in STM stock in 1994, it would worth $7,346.00 today.

1: Adjusted price after possible price splits or reverse-splits.

STM stock historical price chart

STM stock reached 52-week highs on September 13th at $20.19, and all-time highs 2000-02-08 with a price of 46.1.

STM stock price target is $17.50

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we found 4 price targets for STMicroelectronics stock:
STM stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-5-10Deutsche BankReiteratesn/a$20.00-
2019-5-10Credit Suisse GroupReiteratesn/a$19.00-
2019-2-22CowenInitiatesn/a$21.00-
2019-1-24Robert W. BairdReiteratesn/a$10.00-
(in average)$0.00$17.500.0%
The price target for STMicroelectronics stock is $17.50, moving in a range between $21.00 and $10.00. In average, analysts' outlook on STM price forecast is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

STMicroelectronics presented slightly fine results for 2018-Q4 on January. STMicroelectronics raised Earnings per Share (EPS) by 4.50%, beating experts of $0.44. STMicroelectronics posted $0.46.
STM earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.17n/a
2017-Q3-n/a0.29n/a
2017-Q4-n/a0.37n/a
2018-Q12018-04-250.270.283.7%
2018-Q22018-07-250.30.29-3.3%
2018-Q32018-10-240.370.4110.8%
2018-Q42019-01-240.440.464.5%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, STMicroelectronics annual revenues boosted a super good 15.78% to $9,664.00 million USD from $8,347.00 marked in 2017. Nevertheless, its income margin (compared to revenues) appreciated to 13.32%, that is $1,287.00 million.

STM annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$6,090 M-$-376.61 M-6.2%-
2014$7,404 M21.58%$128 M1.7%-133.99%
2015$6,897 M-6.85%$104 M1.5%-18.75%
2016$6,973 M1.10%$165 M2.4%58.65%
2017$8,347 M19.70%$802 M9.6%386.06%
2018$9,664 M15.78%$1,287 M13.3%60.47%

Quarterly financial results

STMicroelectronics posted $2,648.00 M in sales for 2018-Q4, a 5.00% up compared to previous quarter. Reported quarter income marked $418.00 million with a profit margin of 15.79%. Profit margin stepped up a 1.15% compared to previous quarter when profit margin was 14.63%. When comparing turnover to same quarter last year, STMicroelectronics sales marked a great increase and escalated a 7.34%. Looking back to recent quarterly results, STMicroelectronics posted 3 positive quarters in a row.
STM quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$1,750 M-$137 M7.8%-
2017-Q3$1,820 M4.00%$201 M11.0%46.54%
2017-Q4$2,467 M35.55%$308 M12.5%53.31%
2018-Q1$2,226 M-9.77%$239 M10.7%-22.40%
2018-Q2$2,268 M1.89%$207 M9.1%-13.39%
2018-Q3$2,522 M11.20%$369 M14.6%78.26%
2018-Q4$2,648 M5.00%$418 M15.8%13.28%
2019-Q1$2,076 M-21.60%$178 M8.6%-57.42%

STMicroelectronics ownership

When you are planning to invest in a stock, it's worth to review its ownership structure.

STMicroelectronics shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.00% of all shares.

In case of STMicroelectronics stock, 4.16% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for STM stock account 0.00%, no big difference from last month.

For a better context understanding, the following table shows ownership data compared to other related stocks:

STMADIASYSINTCMXIM
Market cap$17.3 B$42.6 B$76.5 M$224.7 B$15.9 B
Total shares896.0 M369.4 M14.3 M4,430.0 M271.3 M
Float shares644.0 M367.9 M12.0 M4,430.0 M269.2 M
  - Institutional holdings (%)4.2%92.5%58.2%68.8%100.0%
  - Insider holdings (%)0.0%0.3%1.8%0.1%0.7%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

STM summary

Friday, September 20th, 2019
Open$19.77
Close$19.28
Day range$19.21 - $19.78
Previous close$19.83
Session gain-2.77%
Average true range$0.46
50d mov avg$18.27
100d mov avg$17.44
200d mov avg$16.47
Daily pattern
Weekly pattern lt06a

STMicroelectronics performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For STMicroelectronics, the benchmark is made against Analog Devices, Amtech Systems, Intel, Maxim Integrated Products, NVIDIA, NXP Semiconductors, ON Semiconductor and Texas Instruments.
Stock3m6m12m
STMSTMicroelectronic...13.88%19.23%3.99%
ADIAnalog Devices1.97%8.53%24.56%
ASYSAmtech Systems-10.22%2.68%-9.00%
INTCIntel7.59%-3.54%11.50%
MXIMMaxim Integrated ...1.04%9.84%1.72%
NVDANVIDIA13.90%-2.50%-34.18%
NXPINXP Semiconductor...10.88%20.25%17.31%
ONON Semiconductor-0.82%-10.72%0.89%
TXNTexas Instruments13.45%16.94%18.46%

STMicroelectronics competitors

One check before trading any stock is to review a list of its competitors, in this case for STMicroelectronics. We selected 8 companies as STMicroelectronics competitors as they are in the same industry or have similar market objectives.

Latest STM stock news