Here’s What Makes STMicroelectronics (STM) A Stock To Consider

Saturna Capital, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. At the close of the third quarter, the Saturna Sustainable Equity Fund trailed the S&P Global 1200 Index, returning -0.93% vs. -0.65% for the Index. The year-to-date spread between Fund and Index was more pronounced, with returns of 4.60% and 12.49%, respectively. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Saturna Capital, in its Q3 2021 investor letter, mentioned STMicroelectronics N.V. (NYSE: STM) and discussed its stance on the firm. STMicroelectronics N.V. is a Geneva, Switzerland-based semiconductor manufacturing company with a $43.6 billion market capitalization. STM delivered a 29.69% return since the beginning of the year, while its 12-month returns are up by 14.65%. The stock closed at $48.14 per share on December 06, 2021.

Here is what Saturna Capital has to say about STMicroelectronics N.V.  in its Q3 2021 investor letter:

“STMicroelectronics has a goal of becoming carbonneutral by 2027, and in 2020 reported that their greenhouse gas emissions were down 19% over the previous year. In 2020, STMicroelectronics was the only semiconductor company with targets approved by the Science Based Targets Initiative for limiting warming to 1.5 degrees Celsius, and their 2027 net-zero goal is recognized as one of the most ambitious in the industry. As greenwashing presents a growing concern within the ESG community, and as more and more funds engage in re-branding exercises that have little to do with pursuing sustainable investment practices among others, our definition of sustainability includes financial sustainability, most often demonstrated by intelligent capital allocation leading to solid cash flows that can sustain a business without resorting to excessive leverage.”

Based on our calculations, STMicroelectronics N.V. (NYSE: STM) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. STM was in 11 hedge fund portfolios at the end of the third quarter of 2021, compared to 13 funds in the previous quarter. STMicroelectronics N.V. (NYSE: STM) delivered a 7.26% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.