United Microelectronics (NYSE:UMC) Shares Climb 4.7% - Still a Buy?

Key Points

• UMC shares rose 4.7% to about $24.98, outperforming their prior close despite trading volume falling 67% below the average session volume.
• Analyst sentiment remains cautious: the stock has a consensus rating of “Reduce” and an average price target of $8.60, although some firms recently upgraded their views to “Buy.”
• UMC reported quarterly revenue of $2.16 billion and EPS of $0.53, with a 33.18% net margin and 21% return on equity; institutional investors own approximately 5.05% of the company.

Shares of United Microelectronics Corporation (NYSE:UMC - Get Free Report) traded up 4.7% during mid-day trading on Tuesday. The stock traded as high as $24.99 and last traded at $24.9790. Approximately 4,464,137 shares traded hands during trading, a decline of 67% from the average session volume of 13,394,752 shares. The stock had previously closed at $23.85.

Analysts Set New Price Targets

Several research firms have issued reports on UMC. Weiss Ratings raised United Microelectronics from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, July 30th. Arete Research raised shares of United Microelectronics from a "neutral" rating to a "buy" rating in a report on Monday, August 10th. Zacks Research cut shares of United Microelectronics from a "strong-buy" rating to a "hold" rating in a research note on Friday. Finally, Wall Street Zen raised shares of United Microelectronics from a "hold" rating to a "buy" rating in a report on Saturday, July 25th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus target price of $8.60.

United Microelectronics Stock Up 4.2%

The business's 50 day simple moving average is $20.60 and its 200 day simple moving average is $18.22. The company has a current ratio of 2.17, a quick ratio of 1.81 and a debt-to-equity ratio of 0.10. The firm has a market capitalization of $62.55 billion, a PE ratio of 23.21, a PEG ratio of 0.57 and a beta of 1.59.

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

Hedge Funds Weigh In On United Microelectronics

Several institutional investors have recently bought and sold shares of UMC. QRG Capital Management Inc. boosted its stake in United Microelectronics by 4.3% in the second quarter. QRG Capital Management Inc. now owns 90,673 shares of the semiconductor company's stock valued at $2,467,000 after acquiring an additional 3,746 shares in the last quarter. Altar Rock LLC acquired a new position in shares of United Microelectronics during the second quarter worth $216,000. Nykredit A S purchased a new stake in shares of United Microelectronics during the 2nd quarter valued at $9,525,000. HB Wealth Management LLC boosted its position in shares of United Microelectronics by 43.0% in the 2nd quarter. HB Wealth Management LLC now owns 34,541 shares of the semiconductor company's stock worth $940,000 after purchasing an additional 10,391 shares in the last quarter. Finally, Angeles Wealth Management LLC purchased a new stake in United Microelectronics in the second quarter valued at about $249,000. 5.05% of the stock is owned by hedge funds and other institutional investors.

About United Microelectronics

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.

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