United Microelectronics (NYSE:UMC) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Shares gapped up after the market opened, rising from $11.66 to an open of $12.43 and last trading around $12.82 (up about 10.8%) on volume of ~2.7 million shares.
• United Microelectronics beat EPS expectations with $0.20 vs. $0.12 consensus (a $0.08 beat) while reporting revenue of $1.91 billion versus $1.96 billion expected, with a net margin of 17.6% and ROE of 11.45%.
• Despite the rally, analyst sentiment remains weak — MarketBeat shows an average rating of "Strong Sell" and a consensus price target of $8.60, with mixed recent analyst actions.

United Microelectronics Corporation (NYSE:UMC - Get Free Report)'s stock price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $11.66, but opened at $12.43. United Microelectronics shares last traded at $12.8160, with a volume of 2,693,881 shares changing hands.

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 17.60% and a return on equity of 11.45%. The company had revenue of $1.91 billion for the quarter, compared to analyst estimates of $1.96 billion.

Analysts Set New Price Targets

Several research firms have 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 research note on Tuesday, March 31st. JPMorgan Chase & Co. reissued an "underweight" rating on shares of United Microelectronics in a research note on Thursday, January 29th. Two investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, United Microelectronics currently has an average rating of "Strong Sell" and a consensus price target of $8.60.

Hedge Funds Weigh In On United Microelectronics

A number of hedge funds have recently modified their holdings of UMC. Smartleaf Asset Management LLC acquired a new position in shares of United Microelectronics in the 2nd quarter worth $27,000. Mirae Asset Global Investments Co. Ltd. grew its holdings in shares of United Microelectronics by 313.7% in the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 4,265 shares of the semiconductor company's stock worth $32,000 after acquiring an additional 3,234 shares during the last quarter. TD Private Client Wealth LLC acquired a new position in shares of United Microelectronics in the 4th quarter worth $32,000. Kestra Advisory Services LLC acquired a new position in shares of United Microelectronics in the 4th quarter worth $52,000. Finally, Arax Advisory Partners grew its holdings in shares of United Microelectronics by 583.7% in the 4th quarter. Arax Advisory Partners now owns 8,656 shares of the semiconductor company's stock worth $68,000 after acquiring an additional 7,390 shares during the last quarter. 5.05% of the stock is currently owned by institutional investors and hedge funds.

United Microelectronics Stock Up 10.8%

The company has a current ratio of 2.34, a quick ratio of 1.91 and a debt-to-equity ratio of 0.12. The firm has a market capitalization of $32.45 billion, a price-to-earnings ratio of 23.95, a PEG ratio of 6.21 and a beta of 1.16. The stock has a fifty day moving average of $10.00 and a 200-day moving average of $8.97.

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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