United Microelectronics (NYSE:UMC) Stock Breaks Below 200-Day Moving Average - Should You Sell?

Key Points

• United Microelectronics shares fell below their 200-day moving average, dropping as low as $16.27 versus the $17.01 average, amid trading volume of roughly 24.2 million shares.
• Analyst sentiment is mixed but leans negative: the stock has a consensus rating of “Reduce”, with two Buy, three Hold and three Sell ratings, despite an average price target of $36.79.
• United Microelectronics narrowly missed quarterly earnings expectations, reporting $0.21 per share versus the $0.23 consensus estimate, while revenue matched forecasts at $2.33 billion.

United Microelectronics Corporation (NYSE:UMC - Get Free Report)'s stock price passed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $17.01 and traded as low as $16.27. United Microelectronics shares last traded at $16.66, with a volume of 24,244,001 shares changing hands.

Analysts Set New Price Targets

A number of analysts have recently issued reports on UMC shares. Arete Research raised 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. Weiss Ratings lowered shares of United Microelectronics from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, October 23rd. Wall Street Zen cut shares of United Microelectronics from a "buy" rating to a "hold" rating in a report on Saturday. Finally, HSBC upgraded shares of United Microelectronics from a "hold" rating to a "buy" rating and lowered their price target for the company from $37.42 to $33.76 in a report on Thursday, July 30th. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Reduce" and an average target price of $36.79.

United Microelectronics Price Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 3.27 and a quick ratio of 1.81. The stock has a market capitalization of $41.94 billion, a P/E ratio of 15.43, a PEG ratio of 0.47 and a beta of 1.60. The stock's fifty day moving average is $21.63 and its 200-day moving average is $17.01.

United Microelectronics (NYSE:UMC - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The semiconductor company reported $0.21 earnings per share for the quarter, missing analysts' consensus estimates of $0.23 by ($0.02). The company had revenue of $2.33 billion during the quarter, compared to analyst estimates of $2.33 billion. United Microelectronics had a return on equity of 20.12% and a net margin of 31.96%. On average, equities analysts anticipate that United Microelectronics Corporation will post 1.23 earnings per share for the current year.

Institutional Investors Weigh In On United Microelectronics

Large investors have recently added to or reduced their stakes in the stock. Matthews International Capital Management LLC acquired a new position in United Microelectronics in the 1st quarter valued at $8,779,000. Nykredit A S acquired a new position in United Microelectronics during the 2nd quarter worth $9,525,000. Dimensional Fund Advisors LP lifted its position in United Microelectronics by 13.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,849,737 shares of the semiconductor company's stock worth $25,591,000 after acquiring an additional 333,011 shares during the last quarter. Delta Global Management LP acquired a new position in United Microelectronics during the 1st quarter worth $1,435,000. Finally, Mirae Asset Global Investments Co. Ltd. bought a new stake in United Microelectronics during the third quarter valued at about $3,757,000. Institutional investors own 5.05% of the company's stock.

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 customers rather than marketing its own branded semiconductor products.

The company provides wafer fabrication services across a range of process technologies, with particular expertise in specialty applications such as display driver ICs, automotive semiconductors, connectivity products, image sensors, power management components and embedded memory.

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