United Microelectronics (NYSE:UMC) Shares Gap Up - Here's Why

Key Points

• Shares gapped up pre-market from $10.62 to an $11.85 open and last traded around $11.55 on volume of about 3.1 million shares.
• Analyst sentiment remains weak — the stock's average rating is Strong Sell with an average price target of $8.60, though BNP Paribas Exane recently upgraded it to neutral while JPMorgan stays underweight.
• UMC beat EPS estimates ($0.13 vs. $0.12) but missed revenue expectations ($1.80B vs. $1.93B), and the share price sits above its 50‑day ($9.69) and 200‑day ($8.69) moving averages.

United Microelectronics Corporation (NYSE:UMC - Get Free Report) shares gapped up prior to trading on Friday . The stock had previously closed at $10.62, but opened at $11.85. United Microelectronics shares last traded at $11.5480, with a volume of 3,102,373 shares trading hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the stock. BNP Paribas Exane upgraded shares of United Microelectronics from an "underperform" rating to a "neutral" rating and set a $8.60 target price for the company in a report 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 analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Strong Sell" and an average price target of $8.60.

United Microelectronics Price Performance

The stock has a market cap of $29.38 billion, a PE ratio of 21.64, a price-to-earnings-growth ratio of 5.29 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 company's fifty day moving average is $9.69 and its 200 day moving average is $8.69.

United Microelectronics (NYSE:UMC - Get Free Report) last released its quarterly earnings data on Wednesday, January 28th. The semiconductor company reported $0.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.12 by $0.01. The company had revenue of $1.80 billion during the quarter, compared to analyst estimates of $1.93 billion. United Microelectronics had a net margin of 17.60% and a return on equity of 11.45%. The business's quarterly revenue was up 7.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.10 earnings per share. As a group, sell-side analysts anticipate that United Microelectronics Corporation will post 0.51 earnings per share for the current fiscal year.

Institutional Investors Weigh In On United Microelectronics

Institutional investors and hedge funds have recently modified their holdings of the stock. Summit Global Investments acquired a new position in United Microelectronics during the 3rd quarter worth approximately $1,097,000. North of South Capital LLP purchased a new stake in shares of United Microelectronics during the third quarter valued at approximately $948,000. US Bancorp DE lifted its position in shares of United Microelectronics by 102.7% during the third quarter. US Bancorp DE now owns 541,044 shares of the semiconductor company's stock worth $4,101,000 after purchasing an additional 274,157 shares in the last quarter. Quantbot Technologies LP boosted its stake in shares of United Microelectronics by 2,855.8% in the third quarter. Quantbot Technologies LP now owns 235,604 shares of the semiconductor company's stock valued at $1,786,000 after purchasing an additional 227,633 shares during the period. Finally, Ethic Inc. grew its holdings in United Microelectronics by 23.7% during the 3rd quarter. Ethic Inc. now owns 424,992 shares of the semiconductor company's stock valued at $3,221,000 after purchasing an additional 81,418 shares in the last quarter. 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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