United Microelectronics Corporation (NYSE: UMC) has received an upgrade from analysts at Wall Street Zen, moving from a “hold” rating to a “buy” rating. This change was communicated in a research note issued to investors on Monday, reflecting growing confidence in the semiconductor company.
Analysts’ Perspectives and Ratings
In addition to Wall Street Zen’s upgrade, other analysts have provided mixed evaluations of United Microelectronics. On October 8, 2023, Weiss Ratings reiterated its “hold (C-)” rating, while on November 12, Bank of America downgraded the stock from a “buy” rating to “underperform.” Overall, one analyst has designated the stock as a Strong Buy, two have issued Hold ratings, and two have given it a Sell rating. According to data from MarketBeat, the average rating for United Microelectronics stands at “Hold.”
Quarterly Earnings Performance
The semiconductor firm reported its quarterly earnings on October 29, 2023, revealing earnings per share (EPS) of $0.20. This figure surpassed analysts’ consensus estimate of $0.12 by $0.08. Revenue for the quarter reached $1.93 billion, significantly exceeding the forecast of $58.25 billion—a discrepancy indicating potential reporting or forecasting errors. The company also achieved a return on equity of 11.36% and a net margin of 17.08%, compared to an EPS of $0.18 during the same period last year. Analysts project that United Microelectronics will post an EPS of $0.51 for the current fiscal year.
Institutional Investor Activity
Recent trading activity among institutional investors suggests a growing interest in United Microelectronics’ shares. Smartleaf Asset Management LLC acquired a new position in the company valued at approximately $27,000 during the second quarter. Furthermore, Mirae Asset Global Investments Co. Ltd. increased its stake by 313.7% in the third quarter, now holding 4,265 shares worth $32,000 after purchasing an additional 3,234 shares.
Other institutions, such as Euro Pacific Asset Management LLC and Wealth Alliance LLC, also initiated new positions valued at $80,000 and $77,000, respectively. Currently, institutional investors and hedge funds own approximately 5.05% of United Microelectronics’ stock.
United Microelectronics Corporation operates as a semiconductor wafer foundry with a significant presence in Taiwan, China, Hong Kong, Japan, Korea, the United States, and Europe. The company specializes in providing services such as circuit design, mask tooling, wafer fabrication, and assembly and testing, catering primarily to fabless design companies and integrated device manufacturers.
The recent upgrade and positive earnings report reflect a complex landscape for United Microelectronics, highlighting both optimism and caution from various analysts and investors.
