Heavy Volume And Pre-Market Movement For STMicroelectronics (STM)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified STMicroelectronics ( STM) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified STMicroelectronics as such a stock due to the following factors:

  • STM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.0 million.
  • STM traded 173,980 shares today in the pre-market hours as of 9:06 AM, representing 19.9% of its average daily volume.

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More details on STM:

STMicroelectronics N.V. engages in the design, development, manufacture, and marketing of various semiconductor integrated circuits and discrete devices worldwide. The stock currently has a dividend yield of 3.9%. Currently there is 1 analyst that rates STMicroelectronics a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for STMicroelectronics has been 744,000 shares per day over the past 30 days. STMicroelectronics has a market cap of $7.9 billion and is part of the technology sector and electronics industry. Shares are up 10.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates STMicroelectronics as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that revenues have generally been declining.

Highlights from the ratings report include:
  • STMICROELECTRONICS NV reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, STMICROELECTRONICS NV continued to lose money by earning -$0.56 versus -$1.31 in the prior year. This year, the market expects an improvement in earnings ($0.25 versus -$0.56).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 91.6% when compared to the same quarter one year prior, rising from -$428.00 million to -$36.00 million.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • STM, with its decline in revenue, underperformed when compared the industry average of 5.0%. Since the same quarter one year prior, revenues slightly dropped by 6.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, STMICROELECTRONICS NV's return on equity significantly trails that of both the industry average and the S&P 500.

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