United Microelectronics (NYSE:UMC) Shares Gap Down - Here's Why

Key Points

• UMC shares opened sharply lower, falling from a previous close of $20.47 to $19.54 before trading around $19.78.
• Analyst sentiment remains mixed: ratings range from Strong Buy to Sell, with an overall “Hold” consensus and an average price target of $8.60.
• UMC reported quarterly EPS of $0.53 on $2.16 billion in revenue, while also increasing its annual dividend to $0.4122 per share.

United Microelectronics Corporation (NYSE:UMC - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $20.47, but opened at $19.54. United Microelectronics shares last traded at $19.7810, with a volume of 1,300,534 shares changing hands.

Wall Street Analyst Weigh In

Several analysts recently commented on the company. BNP Paribas Exane reiterated an "underperform" rating on shares of United Microelectronics in a research report on Thursday, May 28th. Weiss Ratings raised shares of United Microelectronics from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, July 30th. Zacks Research raised shares of United Microelectronics from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 28th. Arete Research upgraded shares of United Microelectronics from a "neutral" rating to a "buy" rating in a research report on Monday, August 10th. Finally, Wall Street Zen raised shares of United Microelectronics from a "hold" rating to a "buy" rating in a research note on Saturday, July 25th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, one has issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, United Microelectronics has an average rating of "Hold" and an average price target of $8.60.

United Microelectronics Stock Performance

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 firm's 50-day moving average price is $21.33 and its two-hundred day moving average price is $16.53. The stock has a market cap of $50.01 billion, a price-to-earnings ratio of 18.56, a PEG ratio of 0.47 and a beta of 1.59.

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

United Microelectronics Increases Dividend

The company also recently declared an annual dividend, which was paid on Thursday, August 6th. Stockholders of record on Wednesday, July 8th were given a dividend of $0.4122 per share. This represents a dividend yield of 166.0%. The ex-dividend date of this dividend was Wednesday, July 8th. This is a boost from United Microelectronics's previous annual dividend of $0.37. United Microelectronics's dividend payout ratio is presently 28.04%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in UMC. Continuum Advisory LLC acquired a new stake in United Microelectronics during the second quarter worth $28,000. CoreCap Advisors LLC lifted its stake in shares of United Microelectronics by 271.0% in the 2nd quarter. CoreCap Advisors LLC now owns 1,369 shares of the semiconductor company's stock valued at $37,000 after purchasing an additional 1,000 shares during the last quarter. Trust Co. of Vermont acquired a new position in shares of United Microelectronics in the 2nd quarter valued at $41,000. Strategic Investment Solutions Inc. IL purchased a new position in shares of United Microelectronics during the 2nd quarter worth $76,000. Finally, Smartleaf Asset Management LLC purchased a new position in shares of United Microelectronics during the 2nd quarter worth $27,000. 5.05% of the stock is currently owned by hedge funds and other institutional investors.

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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