United Microelectronics (NYSE:UMC) Hits New 1-Year High - Still a Buy?

Key Points

• UMC shares hit a new 52-week high, trading as high as $14.22 (last $14.02) and rising about 8% on heavy volume (~23.3M shares).
• United Microelectronics beat quarterly EPS estimates with $0.20 vs. $0.12 expected and reported $1.91B in revenue (vs. $1.92B), with a 20.71% net margin and analysts projecting ~0.7 EPS for the fiscal year.
• Despite the rally, the analyst consensus remains a Strong Sell with a $8.60 price target, even as several firms upgraded ratings and large institutional investors (AQR, Two Sigma, Balyasny, etc.) significantly increased their stakes.

Shares of United Microelectronics Corporation (NYSE:UMC - Get Free Report) reached a new 52-week high during trading on Wednesday . The stock traded as high as $14.22 and last traded at $14.02, with a volume of 23317370 shares changing hands. The stock had previously closed at $12.98.

Wall Street Analyst Weigh In

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

United Microelectronics Stock Up 8.0%

The firm has a market cap of $35.22 billion, a PE ratio of 21.57, a PEG ratio of 1.53 and a beta of 1.41. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.23 and a current ratio of 2.72. The company's 50-day simple moving average is $10.18 and its two-hundred day simple moving average is $9.10.

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

Institutional Investors Weigh In On United Microelectronics

Several institutional investors have recently added to or reduced their stakes in UMC. AQR Capital Management LLC boosted its position in United Microelectronics by 873.8% during the 4th quarter. AQR Capital Management LLC now owns 9,464,312 shares of the semiconductor company's stock valued at $74,389,000 after buying an additional 8,492,466 shares during the period. Two Sigma Investments LP boosted its position in United Microelectronics by 832.5% during the 3rd quarter. Two Sigma Investments LP now owns 3,530,564 shares of the semiconductor company's stock valued at $26,762,000 after buying an additional 3,151,936 shares during the period. Rafferty Asset Management LLC boosted its position in United Microelectronics by 50.7% during the 2nd quarter. Rafferty Asset Management LLC now owns 8,403,064 shares of the semiconductor company's stock valued at $64,283,000 after buying an additional 2,826,486 shares during the period. Marshall Wace LLP purchased a new stake in United Microelectronics during the 3rd quarter valued at $21,235,000. Finally, Balyasny Asset Management L.P. boosted its position in United Microelectronics by 2,011.2% during the 4th quarter. Balyasny Asset Management L.P. now owns 1,980,820 shares of the semiconductor company's stock valued at $15,569,000 after buying an additional 1,886,996 shares during the period. Hedge funds and other institutional investors own 5.05% of the company's stock.

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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