STMicroelectronics (NYSE:STM) Increases Dividend to $0.09 Per Share

STMicroelectronics (NYSE:STMGet Free Report) announced a quarterly dividend on Thursday, March 21st, Zacks reports. Shareholders of record on Tuesday, June 25th will be given a dividend of 0.09 per share by the semiconductor producer on Tuesday, July 2nd. This represents a $0.36 dividend on an annualized basis and a yield of 0.83%. The ex-dividend date of this dividend is Tuesday, June 25th. This is a boost from STMicroelectronics’s previous quarterly dividend of $0.06.

STMicroelectronics has increased its dividend by an average of 8.9% per year over the last three years. STMicroelectronics has a payout ratio of 8.9% meaning its dividend is sufficiently covered by earnings. Research analysts expect STMicroelectronics to earn $4.01 per share next year, which means the company should continue to be able to cover its $0.36 annual dividend with an expected future payout ratio of 9.0%.

STMicroelectronics Price Performance

Shares of NYSE:STM opened at $43.30 on Friday. STMicroelectronics has a fifty-two week low of $37.21 and a fifty-two week high of $55.85. The firm has a market cap of $39.09 billion, a price-to-earnings ratio of 9.71, a P/E/G ratio of 2.85 and a beta of 1.69. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.44 and a current ratio of 3.17. The firm has a fifty day moving average price of $45.22 and a 200 day moving average price of $44.88.

STMicroelectronics (NYSE:STMGet Free Report) last posted its earnings results on Thursday, January 25th. The semiconductor producer reported $1.14 EPS for the quarter, beating analysts’ consensus estimates of $0.95 by $0.19. The business had revenue of $4.28 billion for the quarter, compared to the consensus estimate of $4.08 billion. STMicroelectronics had a net margin of 24.36% and a return on equity of 27.70%. The company’s revenue for the quarter was down 3.2% on a year-over-year basis. During the same quarter last year, the firm posted $1.32 EPS. As a group, sell-side analysts expect that STMicroelectronics will post 3.06 earnings per share for the current fiscal year.

Institutional Trading of STMicroelectronics

Hedge funds have recently added to or reduced their stakes in the business. Prudential Financial Inc. acquired a new stake in STMicroelectronics in the 1st quarter worth about $231,000. Bridgefront Capital LLC acquired a new position in shares of STMicroelectronics in the 2nd quarter valued at about $229,000. International Assets Investment Management LLC purchased a new stake in shares of STMicroelectronics during the 4th quarter valued at about $229,000. Captrust Financial Advisors raised its holdings in shares of STMicroelectronics by 109.8% during the 2nd quarter. Captrust Financial Advisors now owns 7,129 shares of the semiconductor producer’s stock valued at $224,000 after buying an additional 3,731 shares during the period. Finally, SVB Wealth LLC purchased a new stake in shares of STMicroelectronics during the 2nd quarter valued at about $209,000. 5.62% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the stock. HSBC started coverage on shares of STMicroelectronics in a report on Thursday, February 22nd. They issued a “buy” rating for the company. downgraded STMicroelectronics from a “strong-buy” rating to a “buy” rating in a report on Wednesday, January 31st. UBS Group raised STMicroelectronics from a “neutral” rating to a “buy” rating in a report on Friday, December 15th. Finally, Craig Hallum cut their price objective on STMicroelectronics from $50.00 to $48.00 and set a “buy” rating for the company in a research report on Thursday, January 25th. Two analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $50.75.

Read Our Latest Stock Analysis on STMicroelectronics

About STMicroelectronics

(Get Free Report)

STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments.

See Also

Dividend History for STMicroelectronics (NYSE:STM)

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