Investors Purchase High Volume of United Microelectronics Call Options (NYSE:UMC)

Key Points

• Unusually heavy options activity: Traders purchased 44,740 United Microelectronics call options, 217% above the typical volume of 14,092 contracts.
• Shares fell sharply: UMC declined 10.8% to $23.43 during Monday trading, while still trading well above its 52-week low of $6.97.
• Analyst sentiment remains cautious: Despite some recent upgrades to “buy,” the stock has a consensus “Reduce” rating and a $8.60 target price, substantially below its current price.

United Microelectronics Corporation (NYSE:UMC - Get Free Report) was the recipient of unusually large options trading activity on Monday. Traders bought 44,740 call options on the stock. This is an increase of 217% compared to the typical volume of 14,092 call options.

United Microelectronics Stock Down 10.8%

Shares of United Microelectronics stock traded down $2.83 during midday trading on Monday, hitting $23.43. The company had a trading volume of 13,218,301 shares, compared to its average volume of 13,325,950. United Microelectronics has a 52-week low of $6.97 and a 52-week high of $28.96. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.81 and a current ratio of 2.17. The stock has a market capitalization of $59.00 billion, a P/E ratio of 21.86, a P/E/G ratio of 0.62 and a beta of 1.60. The company has a 50 day moving average of $20.96 and a 200 day moving average of $18.67.

United Microelectronics (NYSE:UMC - Get Free Report) last released its earnings results on Tuesday, June 30th. The semiconductor company reported $0.53 EPS for the quarter. The business had revenue of $2.16 billion for the quarter. United Microelectronics had a return on equity of 21.00% and a net margin of 33.18%. On average, equities analysts predict that United Microelectronics will post 1.23 earnings per share for the current fiscal year.

Institutional Investors Weigh In On United Microelectronics

A number of institutional investors have recently made changes to their positions in the company. Matthews International Capital Management LLC bought a new stake in shares of United Microelectronics in the 1st quarter worth $8,779,000. Nykredit A S purchased a new stake in shares of United Microelectronics during the second quarter valued at $9,525,000. Dimensional Fund Advisors LP increased its holdings in United Microelectronics by 13.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,849,737 shares of the semiconductor company's stock worth $25,591,000 after buying an additional 333,011 shares in the last quarter. Delta Global Management LP purchased a new position in United Microelectronics in the 1st quarter worth about $1,435,000. Finally, Sei Investments Co. lifted its stake in United Microelectronics by 508.6% during the 1st quarter. Sei Investments Co. now owns 169,183 shares of the semiconductor company's stock valued at $1,519,000 after acquiring an additional 141,385 shares during the period. Hedge funds and other institutional investors own 5.05% of the company's stock.

Analyst Ratings Changes

Several brokerages have commented on UMC. Arete Research upgraded shares of United Microelectronics from a "neutral" rating to a "buy" rating in a report on Monday, August 10th. Wall Street Zen upgraded United Microelectronics from a "hold" rating to a "buy" rating in a research note on Saturday, July 25th. Weiss Ratings raised United Microelectronics from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, July 30th. Finally, Zacks Research downgraded United Microelectronics from a "strong-buy" rating to a "hold" rating in a report on Friday, September 25th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus target price of $8.60.

United Microelectronics Company Profile

United Microelectronics Corp. NYSE: UMC is a Taiwan-based semiconductor foundry that manufactures integrated circuits for other companies. As a pure-play foundry, UMC focuses on producing chips designed by its customers rather than marketing semiconductor products under its own consumer brand.

The company provides wafer fabrication services across a range of established and specialty semiconductor processes. Its offerings support applications including communications, automotive electronics, industrial systems, consumer devices, display products and other embedded technologies.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.