United Microelectronics (NYSE:UMC) Shares Up 6.1% - What's Next?

Key Points

• Shares of United Microelectronics jumped 6.1% to $10.55 on Thursday, but the rally occurred on light volume (1.66M shares, about 84% below its average), suggesting limited participation.
• Analysts remain bearish overall — MarketBeat shows an average rating of Strong Sell with an average target of $8.60; broker moves were mixed (JPMorgan kept an "underweight" while BNP Paribas raised to "neutral").
• UMC beat EPS estimates ($0.13 vs. $0.12) but missed revenue expectations ($1.80B vs. $1.93B); the company trades at a PE of ~19.8 and has a market cap of about $26.9B.

Shares of United Microelectronics Corporation (NYSE:UMC - Get Free Report) shot up 6.1% during mid-day trading on Thursday . The stock traded as high as $10.66 and last traded at $10.5530. 1,661,427 shares traded hands during trading, a decline of 84% from the average session volume of 10,205,771 shares. The stock had previously closed at $9.95.

Analyst Ratings Changes

Several brokerages have issued reports on UMC. JPMorgan Chase & Co. reaffirmed an "underweight" rating on shares of United Microelectronics in a report on Thursday, January 29th. BNP Paribas Exane raised United Microelectronics from an "underperform" rating to a "neutral" rating and set a $8.60 price objective on the stock in a report on Tuesday, March 31st. Two research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, United Microelectronics presently has an average rating of "Strong Sell" and an average target price of $8.60.

United Microelectronics Stock Performance

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 fifty day moving average of $9.68 and a 200-day moving average of $8.68. The stock has a market cap of $26.87 billion, a PE ratio of 19.81, a price-to-earnings-growth ratio of 5.09 and a beta of 1.16.

United Microelectronics (NYSE:UMC - Get Free Report) last released its quarterly earnings results on Wednesday, January 28th. The semiconductor company reported $0.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.12 by $0.01. United Microelectronics had a return on equity of 11.45% and a net margin of 17.60%.The firm had revenue of $1.80 billion for the quarter, compared to analyst estimates of $1.93 billion. During the same quarter last year, the company posted $0.10 earnings per share. The business's revenue was up 7.0% on a year-over-year basis. On average, equities analysts forecast that United Microelectronics Corporation will post 0.51 EPS for the current year.

Institutional Investors Weigh In On United Microelectronics

Hedge funds have recently added to or reduced their stakes in the company. Smartleaf Asset Management LLC acquired a new stake in United Microelectronics in the second quarter valued at about $27,000. Mirae Asset Global Investments Co. Ltd. lifted its position in United Microelectronics by 313.7% in the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 4,265 shares of the semiconductor company's stock valued at $32,000 after purchasing an additional 3,234 shares during the period. TD Private Client Wealth LLC acquired a new stake in United Microelectronics in the fourth quarter valued at about $32,000. Kestra Advisory Services LLC acquired a new stake in United Microelectronics in the fourth quarter valued at about $52,000. Finally, Arax Advisory Partners lifted its position in United Microelectronics by 583.7% in the fourth quarter. Arax Advisory Partners now owns 8,656 shares of the semiconductor company's stock valued at $68,000 after purchasing an additional 7,390 shares during the period. Institutional investors and hedge funds 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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