Matthews International Capital Management LLC Acquires Shares of 977,645 United Microelectronics Corporation $UMC

Key Points

• Matthews International Capital Management initiated a new position in United Microelectronics in the first quarter, buying 977,645 shares valued at about $8.8 million. The stake now represents roughly 3.6% of the firm’s holdings and its 9th-largest position.
• United Microelectronics reported better-than-expected quarterly earnings, posting $0.20 EPS versus the $0.12 consensus estimate, though revenue of $1.91 billion slightly missed expectations. Sell-side analysts currently maintain a notably bearish view, with a consensus rating of Strong Sell and a target price of $8.60.
• The company also raised its annual dividend to $0.4122 per share from $0.37, payable on August 6. The stock was trading up slightly at $24.39 and has seen significant institutional interest, with institutions owning 5.05% of shares.

Matthews International Capital Management LLC bought a new position in shares of United Microelectronics Corporation (NYSE:UMC - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 977,645 shares of the semiconductor company's stock, valued at approximately $8,779,000. United Microelectronics makes up about 3.6% of Matthews International Capital Management LLC's holdings, making the stock its 9th biggest position.

A number of other institutional investors also recently modified their holdings of the business. Mirae Asset Global Investments Co. Ltd. increased its holdings in shares of United Microelectronics by 3,854.2% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 168,648 shares of the semiconductor company's stock worth $1,326,000 after purchasing an additional 164,383 shares during the period. Moran Wealth Management LLC boosted its stake in shares of United Microelectronics by 13.8% in the fourth quarter. Moran Wealth Management LLC now owns 792,367 shares of the semiconductor company's stock valued at $6,228,000 after buying an additional 95,871 shares during the period. Ethic Inc. boosted its stake in shares of United Microelectronics by 16.6% in the fourth quarter. Ethic Inc. now owns 495,589 shares of the semiconductor company's stock valued at $3,895,000 after buying an additional 70,597 shares during the period. QRG Capital Management Inc. grew its position in United Microelectronics by 115.3% during the first quarter. QRG Capital Management Inc. now owns 86,927 shares of the semiconductor company's stock worth $781,000 after buying an additional 46,549 shares in the last quarter. Finally, Robeco Institutional Asset Management B.V. bought a new position in United Microelectronics during the 4th quarter worth $1,924,000. Institutional investors own 5.05% of the company's stock.

United Microelectronics Trading Up 0.2%

NYSE UMC opened at $24.39 on Monday. The company has a quick ratio of 2.23, a current ratio of 2.72 and a debt-to-equity ratio of 0.12. United Microelectronics Corporation has a twelve month low of $6.56 and a twelve month high of $28.96. The company has a market cap of $61.42 billion, a price-to-earnings ratio of 37.53, a price-to-earnings-growth ratio of 2.87 and a beta of 1.58. The business's fifty day moving average is $21.22 and its 200 day moving average is $13.81.

United Microelectronics (NYSE:UMC - Get Free Report) last issued its earnings results on Wednesday, April 29th. The semiconductor company reported $0.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.12 by $0.08. The business had revenue of $1.91 billion during the quarter, compared to analysts' expectations of $1.92 billion. United Microelectronics had a return on equity of 13.67% and a net margin of 20.71%. As a group, sell-side analysts expect that United Microelectronics Corporation will post 0.7 EPS for the current fiscal year.

United Microelectronics Increases Dividend

The company also recently disclosed an annual dividend, which will be paid on Thursday, August 6th. Stockholders of record on Wednesday, July 8th will be paid a $0.4122 dividend. This is an increase from United Microelectronics's previous annual dividend of $0.37. This represents a dividend yield of 166.0%. The ex-dividend date of this dividend is Wednesday, July 8th. United Microelectronics's payout ratio is currently 47.69%.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the company. Wall Street Zen cut United Microelectronics from a "buy" rating to a "hold" rating in a report on Sunday. Weiss Ratings restated a "hold (c)" rating on shares of United Microelectronics in a research report on Tuesday, May 26th. Finally, BNP Paribas Exane reaffirmed an "underperform" rating on shares of United Microelectronics in a research report on Thursday, May 28th. One investment analyst has rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Strong Sell" and a consensus target price of $8.60.

United Microelectronics Company Profile

United Microelectronics Corporation (UMC) is a Taiwan-based semiconductor foundry that provides wafer fabrication and related manufacturing services to a global customer base. Founded in 1980, the company operates as a pure-play foundry, producing integrated circuits for a range of customers including fabless semiconductor companies and integrated device manufacturers. UMC is publicly listed NYSE: UMC and focuses on high-reliability manufacturing rather than branding consumer products.

UMC's core services encompass wafer fabrication using a portfolio of process technologies, with particular emphasis on mature and specialty nodes that support analog, power-management, radio-frequency (RF), and mixed-signal applications.

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