United Microelectronics Corporation (NYSE: UMC): A Great Stock For Handling Current Market Conditions?

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Renaissance Technologies LLC recently announced the acquisition of new stake in United Microelectronics Corporation (NYSE:UMC). The institutional investor has increased its shareholding in the Technology company by 1.53% to 18.16 million shares with purchase of 0.27 million shares. This fresh investment now brings its stake to 0.74% valued currently at $45.94 million. In addition, Aperio Group LLC raised its holdings by 1.53 million to 8.38 million shares. And Sculptor Capital LP has lifted its position by 574.51% or 6.78 million shares – to 7.96 million shares.

With over 0.71 million United Microelectronics Corporation (UMC) shares trading Friday and a closing price of $2.75 on the day, the dollar volume was approximately $1.96 million. The shares have shown a positive weekly performance of 0.36% and its price on 07/10/20 lost nearly 0.00%. Currently, there are 2.36B common shares owned by the public and among those 2.26B shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 20 analysts who have offered their price forecasts for UMC have a consensus price objective of $2.81. The analysts have set the share’s price value over the next 12 months at a high of $3.40 and a low of $2.00 should the stock experience a downside. Incidentally, analysts’ outlook for the United Microelectronics Corporation stock is 3.00 for the next 12 months. The average price target is -13.17% below its last price level and a downside to the estimated low will see the stock lose -37.5% over that period. But an upside of 19.12% will see the stock hit the forecast high price target while mean target price for the stock is $2.93.

The top 3 mutual fund holders in United Microelectronics Corporation are Vanguard Emerging Markets Stock I, Vanguard FTSE All World (ex-US) I, and Vanguard Total International Stoc. Vanguard Emerging Markets Stock I owns 14.54 million shares of the company’s stock, all valued at over $36.79 million. The company sold -0.63 million shares recently to bring their total holdings to about 0.60% of the shares outstanding. Vanguard Total International Stoc now owns shares totaling to 0.12% of the shares outstanding.

Shares of United Microelectronics Corporation (NYSE: UMC) opened at $2.78, up $0.03 from a prior closing price of $2.75. However, the script later closed the day at $2.75, down 0.00%. The company’s stock has a 5-day price change of 0.36% and 19.57% over the past three months. UMC shares are trading 2.61% year to date (YTD), with the 12-month market performance up to 18.03% higher. It has a 12-month low price of $1.99 and touched a high of $2.94 over the same period. Currently, 0.71 million shares have been traded, compared to an average intraday trading volume of 873.15K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 4.25%, 6.02%, and 10.78% respectively.

Institutional ownership of United Microelectronics Corporation (NYSE: UMC) shares accounts for 5.40% of the company’s 2.36B shares outstanding. Mutual fund holders own 1.32%, while other institutional holders and individual stakeholders account for 3.86% and — respectively.

It has a market capitalization of $6.71B and a beta (3y monthly) value of 0.92. The stock’s trailing 12-month PE ratio is 19.23, while the earnings-per-share (ttm) stands at $0.14. The company has a PEG of 0.96 and a Quick Ratio of 2.20 with the debt-to-equity ratio at 0.37. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.56% over the week and 2.15% over the month.

Analysts forecast that United Microelectronics Corporation (UMC) will achieve an EPS of $0.05 for the current quarter, $0.05 for the next quarter and $0.19 for 2021. The lowest estimate earnings-per-share for the quarter is $0.05 while analysts give the company a high EPS estimate of $0.05. Comparatively, EPS for the current quarter was $0.02 a year ago. Earnings per share for the fiscal year are expected to increase by 39.10%, and 26.67% over the next financial year. EPS should grow at an annualized rate of 20.00% over the next five years, compared to -3.10% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 20 brokerage firm advisors rate United Microelectronics Corporation (UMC) as a “Hold” at a consensus score of 3.00. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 12 of the 20 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the UMC, a number of firms have released research notes about the stock. Macquarie stated their Neutral rating for the stock in a research note on June 10, 2020, with the firm’s price target at. JP Morgan coverage for the United Microelectronics Corporation (UMC) stock in a research note released on March 12, 2020 offered a Underweight rating with a price target of. Jefferies was of a view on February 06, 2020 that the stock is Buy, while CLSA gave the stock Buy rating on December 04, 2019, issuing a price target of. Morgan Stanley on their part issued Overweight rating on December 03, 2019.

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