Traders Buy Large Volume of United Microelectronics Call Options (NYSE:UMC)

Key Points

• Traders bought 50,345 call options on UMC—up 755% from the average daily call volume—indicating unusually strong bullish options activity.
• UMC shares rose $1 to $13.98 on heavy trading (13.7M shares vs. a 10.94M average), after the company reported Q1 EPS of $0.20 versus a $0.12 consensus and revenue of $1.91B.
• Despite a few recent upgrades, analysts' consensus remains a Strong Sell with an average price target of $8.60.

United Microelectronics Corporation (NYSE:UMC - Get Free Report) was the recipient of some unusual options trading activity on Tuesday. Stock investors acquired 50,345 call options on the company. This is an increase of 755% compared to the average daily volume of 5,886 call options.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on UMC. JPMorgan Chase & Co. restated an "underweight" rating on shares of United Microelectronics in a report on Thursday, January 29th. BNP Paribas Exane raised United Microelectronics from an "underperform" rating to a "neutral" rating and set a $8.60 price target for the company in a report on Tuesday, March 31st. Finally, Wall Street Zen upgraded United Microelectronics from a "hold" rating to a "buy" rating in a research report on Saturday. Two investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Strong Sell" and an average target price of $8.60.

United Microelectronics Price Performance

UMC stock traded up $1.00 during trading on Tuesday, hitting $13.98. The company had a trading volume of 13,706,725 shares, compared to its average volume of 10,940,750. The company has a fifty day moving average price of $10.11 and a two-hundred day moving average price of $9.05. United Microelectronics has a fifty-two week low of $6.56 and a fifty-two week high of $14.22. The company has a market cap of $35.12 billion, a P/E ratio of 21.50, a P/E/G ratio of 1.54 and a beta of 1.41. The company has a current ratio of 2.72, a quick ratio of 2.23 and a debt-to-equity ratio of 0.12.

United Microelectronics (NYSE:UMC - Get Free Report) last issued its earnings results on Wednesday, April 29th. The semiconductor company reported $0.20 EPS for the quarter, beating the consensus estimate of $0.12 by $0.08. United Microelectronics had a net margin of 20.71% and a return on equity of 13.67%. The company had revenue of $1.91 billion for the quarter, compared to the consensus estimate of $1.92 billion. Equities research analysts expect that United Microelectronics will post 0.7 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of UMC. Cetera Investment Advisers increased its holdings in United Microelectronics by 7.7% during the 4th quarter. Cetera Investment Advisers now owns 15,472 shares of the semiconductor company's stock valued at $122,000 after purchasing an additional 1,103 shares in the last quarter. Xponance LLC increased its stake in shares of United Microelectronics by 7.2% in the fourth quarter. Xponance LLC now owns 20,494 shares of the semiconductor company's stock valued at $161,000 after buying an additional 1,384 shares in the last quarter. Xponance Inc. raised its holdings in shares of United Microelectronics by 8.2% in the third quarter. Xponance Inc. now owns 19,110 shares of the semiconductor company's stock valued at $145,000 after buying an additional 1,445 shares during the last quarter. GeoWealth Management LLC lifted its position in United Microelectronics by 10.2% during the 3rd quarter. GeoWealth Management LLC now owns 15,710 shares of the semiconductor company's stock worth $119,000 after buying an additional 1,459 shares in the last quarter. Finally, Hennessy Advisors Inc. lifted its position in United Microelectronics by 8.8% during the 4th quarter. Hennessy Advisors Inc. now owns 18,212 shares of the semiconductor company's stock worth $143,000 after buying an additional 1,471 shares in the last quarter. 5.05% of the stock is owned by institutional investors and hedge funds.

About United Microelectronics

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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