United Microelectronics (NYSE:UMC) Shares Gap Down - Time to Sell?

Key Points

• United Microelectronics shares gapped down sharply, opening at $23.82 versus a prior close of $26.27, with 6.7 million shares traded.
• Analyst sentiment remains cautious: MarketBeat reports a consensus rating of “Reduce”, based on one Buy, two Holds and three Sell ratings, with a stated target price of $8.60.
• The company reported quarterly EPS of $0.53 on $2.16 billion in revenue, while institutional investors and hedge funds own approximately 5.05% of the stock.

United Microelectronics Corporation (NYSE:UMC - Get Free Report) gapped down before the market opened on Monday. The stock had previously closed at $26.27, but opened at $23.82. United Microelectronics shares last traded at $23.4310, with a volume of 6,685,701 shares traded.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on UMC shares. Wall Street Zen raised United Microelectronics from a "hold" rating to a "buy" rating in a report on Saturday, July 25th. Arete Research upgraded shares of United Microelectronics from a "neutral" rating to a "buy" rating in a research report on Monday, August 10th. Zacks Research downgraded shares of United Microelectronics from a "strong-buy" rating to a "hold" rating in a research report on Friday, September 25th. Finally, Weiss Ratings upgraded shares of United Microelectronics from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, July 30th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and three have given 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 Price Performance

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 $59.09 billion, a PE ratio of 21.93, a P/E/G ratio of 0.62 and a beta of 1.60. The company has a fifty day moving average price of $20.96 and a two-hundred day moving average price of $18.67.

United Microelectronics (NYSE:UMC - Get Free Report) last released its quarterly earnings results 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 for the quarter. United Microelectronics had a return on equity of 21.00% and a net margin of 33.18%. Sell-side analysts forecast that United Microelectronics Corporation will post 1.23 earnings per share for the current year.

Hedge Funds Weigh In On United Microelectronics

A number of institutional investors have recently modified their holdings of the business. Continuum Advisory LLC acquired a new stake in United Microelectronics during the 2nd quarter worth $28,000. CoreCap Advisors LLC increased its stake in United Microelectronics by 271.0% in the second 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 period. Trust Co. of Vermont purchased a new stake in shares of United Microelectronics in the second quarter valued at about $41,000. Strategic Investment Solutions Inc. IL acquired a new stake in shares of United Microelectronics during the second quarter worth about $76,000. Finally, Eastern Bank acquired a new stake in shares of United Microelectronics during the second quarter worth about $210,000. 5.05% of the stock is owned by institutional investors and hedge funds.

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.

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