United Microelectronics (NYSE:UMC) Shares Gap Down - Should You Sell?

Key Points

• UMC's stock gapped down from $12.28 to open at $11.58 and was last at $11.5160 on volume of about 2.88 million shares.
• Analysts' consensus is a Strong Sell with an average target of $8.60 (two Holds, three Sells); JPMorgan remains underweight while BNP Paribas upgraded to neutral.
• UMC reported Q1 EPS of $0.13 (beat by $0.01) but missed revenue at $1.80B versus $1.93B expected; the company has a market cap of $28.99B and trades above its 50‑day ($9.94) and 200‑day ($8.91) moving averages.

United Microelectronics Corporation (NYSE:UMC - Get Free Report)'s stock price gapped down prior to trading on Monday . The stock had previously closed at $12.28, but opened at $11.58. United Microelectronics shares last traded at $11.5160, with a volume of 2,882,165 shares trading hands.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on UMC. JPMorgan Chase & Co. reiterated an "underweight" rating on shares of United Microelectronics in a research note on Thursday, January 29th. BNP Paribas Exane upgraded United Microelectronics from an "underperform" rating to a "neutral" rating and set a $8.60 target price on the stock in a research note on Tuesday, March 31st. Two investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, United Microelectronics has an average rating of "Strong Sell" and an average target price of $8.60.

United Microelectronics Stock Performance

The company has a market cap of $28.99 billion, a P/E ratio of 21.37, a price-to-earnings-growth ratio of 6.52 and a beta of 1.16. The company has a quick ratio of 1.91, a current ratio of 2.34 and a debt-to-equity ratio of 0.12. The stock has a 50 day moving average price of $9.94 and a two-hundred day moving average price of $8.91.

United Microelectronics (NYSE:UMC - Get Free Report) last announced its earnings results on Wednesday, January 28th. The semiconductor company reported $0.13 earnings per share for the quarter, topping analysts' consensus estimates of $0.12 by $0.01. The company had revenue of $1.80 billion for the quarter, compared to analyst estimates of $1.93 billion. United Microelectronics had a return on equity of 11.45% and a net margin of 17.60%.The firm's quarterly revenue was up 7.0% compared to the same quarter last year. During the same quarter last year, the company earned $0.10 earnings per share. On average, research analysts predict that United Microelectronics Corporation will post 0.52 earnings per share for the current fiscal year.

Institutional Investors Weigh In On United Microelectronics

A number of large investors have recently added to or reduced their stakes in UMC. Jones Financial Companies Lllp grew its position in United Microelectronics by 1,794.6% during the first quarter. Jones Financial Companies Lllp now owns 62,656 shares of the semiconductor company's stock worth $448,000 after buying an additional 59,349 shares in the last quarter. Goldman Sachs Group Inc. grew its position in United Microelectronics by 10.5% during the first quarter. Goldman Sachs Group Inc. now owns 5,655,721 shares of the semiconductor company's stock worth $40,438,000 after buying an additional 537,777 shares in the last quarter. Sivia Capital Partners LLC grew its position in United Microelectronics by 25.8% during the second quarter. Sivia Capital Partners LLC now owns 29,408 shares of the semiconductor company's stock worth $225,000 after buying an additional 6,028 shares in the last quarter. Legal & General Group Plc acquired a new stake in United Microelectronics during the second quarter worth approximately $108,000. Finally, Franklin Resources Inc. grew its position in United Microelectronics by 37.9% during the second quarter. Franklin Resources Inc. now owns 24,735 shares of the semiconductor company's stock worth $189,000 after buying an additional 6,793 shares in the last quarter. Institutional investors and hedge funds 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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