United Microelectronics (NYSE:UMC) Raised to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded United Microelectronics from a "hold" to a "buy," but the analyst consensus still sits at a Strong Sell with a $8.60 average price target.
• UMC beat Q1 EPS expectations ($0.20 vs. $0.12) while revenue was essentially in line at $1.91B, and the company reported strong profitability metrics (net margin 20.71%, ROE 13.85%).
• Shares trade near the 52-week high (~$13.03) with a market cap of $32.74B and a P/E of 20.05, yet institutional ownership remains low (~5.05%) despite some recent modest buying by funds.

United Microelectronics (NYSE:UMC - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday.

A number of other brokerages have also recently issued reports on UMC. BNP Paribas Exane upgraded United Microelectronics from an "underperform" rating to a "neutral" rating and set a $8.60 price objective for the company in a report on Tuesday, March 31st. JPMorgan Chase & Co. restated an "underweight" rating on shares of United Microelectronics in a report on Thursday, January 29th. Two analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Strong Sell" and a consensus price target of $8.60.

United Microelectronics Trading Down 0.2%

United Microelectronics stock opened at $13.03 on Friday. United Microelectronics has a 52 week low of $6.56 and a 52 week high of $13.39. The stock has a market capitalization of $32.74 billion, a P/E ratio of 20.05, a PEG ratio of 1.87 and a beta of 1.41. The stock has a 50-day simple moving average of $10.11 and a 200 day simple moving average of $9.03. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.91 and a current ratio of 2.34.

United Microelectronics (NYSE:UMC - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The semiconductor company reported $0.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.12 by $0.08. United Microelectronics had a return on equity of 13.85% and a net margin of 20.71%.The company had revenue of $1.91 billion during the quarter, compared to analysts' expectations of $1.92 billion. Analysts expect that United Microelectronics will post 0.57 earnings per share for the current year.

Institutional Investors Weigh In On United Microelectronics

Institutional investors have recently made changes to their positions in the company. Sequoia Financial Advisors LLC raised its position in shares of United Microelectronics by 4.6% in the first quarter. Sequoia Financial Advisors LLC now owns 207,053 shares of the semiconductor company's stock valued at $1,859,000 after buying an additional 9,057 shares in the last quarter. Hsbc Holdings PLC acquired a new stake in shares of United Microelectronics in the first quarter valued at approximately $191,000. DGS Capital Management LLC raised its position in shares of United Microelectronics by 2.5% in the first quarter. DGS Capital Management LLC now owns 95,304 shares of the semiconductor company's stock valued at $856,000 after buying an additional 2,359 shares in the last quarter. V Square Quantitative Management LLC acquired a new stake in shares of United Microelectronics in the first quarter valued at approximately $120,000. Finally, QRG Capital Management Inc. raised its position in shares of United Microelectronics by 115.3% in the first quarter. QRG Capital Management Inc. now owns 86,927 shares of the semiconductor company's stock valued at $781,000 after buying an additional 46,549 shares in the last quarter. Institutional investors own 5.05% of the company's stock.

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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