United Microelectronics (NYSE:UMC) Trading Down 5.1% After Earnings Miss

Shares of United Microelectronics Co. (NYSE:UMC) dropped 5.1% during trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $5.77 and last traded at $5.73. Approximately 12,069,881 shares were traded during mid-day trading, an increase of 8% from the average daily volume of 11,138,167 shares. The stock had previously closed at $6.03.

The semiconductor company reported $0.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.13 by ($0.03). United Microelectronics had a net margin of 22.89% and a return on equity of 14.35%. The company had revenue of $1.84 billion for the quarter, compared to the consensus estimate of $1.86 billion. During the same quarter in the previous year, the firm earned $5.30 earnings per share. The company’s revenue for the quarter was up 4.9% compared to the same quarter last year.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on UMC. Morgan Stanley lowered shares of United Microelectronics from an “overweight” rating to an “equal weight” rating in a report on Monday, October 28th. StockNews.com lowered shares of United Microelectronics from a “buy” rating to a “hold” rating in a report on Sunday, November 17th. JPMorgan Chase & Co. lowered shares of United Microelectronics from an “overweight” rating to a “neutral” rating in a report on Wednesday, October 30th. The Goldman Sachs Group lowered shares of United Microelectronics from a “buy” rating to a “neutral” rating and set a $7.40 price target for the company. in a report on Thursday, October 17th. Finally, Citigroup lowered shares of United Microelectronics from a “buy” rating to a “sell” rating in a report on Tuesday. One research analyst has rated the stock with a sell rating and five have issued a hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $7.40.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Assetmark Inc. bought a new stake in shares of United Microelectronics in the third quarter worth approximately $37,000. GAMMA Investing LLC grew its stake in shares of United Microelectronics by 90.7% in the third quarter. GAMMA Investing LLC now owns 6,817 shares of the semiconductor company’s stock worth $57,000 after acquiring an additional 3,242 shares during the period. Viking Fund Management LLC bought a new stake in shares of United Microelectronics in the third quarter worth approximately $84,000. MML Investors Services LLC bought a new stake in shares of United Microelectronics in the third quarter worth approximately $86,000. Finally, Synovus Financial Corp bought a new stake in shares of United Microelectronics in the third quarter worth approximately $89,000. 5.05% of the stock is owned by hedge funds and other institutional investors.

United Microelectronics Price Performance

The business’s 50 day moving average price is $6.59 and its 200 day moving average price is $7.59. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.19 and a quick ratio of 1.76. The stock has a market capitalization of $14.32 billion, a P/E ratio of 8.82, a price-to-earnings-growth ratio of 3.06 and a beta of 1.17.

United Microelectronics Company Profile

United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers.