United Microelectronics Corporation [UMC] is 45.08% higher this YTD. Is it still time to buy?


United Microelectronics Corporation [NYSE: UMC] gained 5.16% or 0.6 points to close at $12.23 with a heavy trading volume of 18396993 shares. The company report on December 1, 2021 that Micron and UMC Expand Relationship to Strengthen Customer Supply Chains.

Micron Technology, Inc. (Nasdaq: MU), an industry leader in innovative memory and storage solutions, announced an expansion of its business relationship with United Microelectronics Corporation (TWSE: 2303; NYSE: UMC), providing Micron opportunities to secure supply for automotive, mobile and critical customers into the future.

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“Expanding our relationship with UMC helps us strengthen our customers’ supply chains and is a great opportunity to increase collaboration across the semiconductor industry,” said Executive Vice President and Head of Global Operations, Manish Bhatia. “This expanded relationship provides Micron continuing access to products that are critical to our automotive and mobile customers, and we look forward to working with UMC in the coming years to deliver our industry-leading memory and storage solutions to our customers globally.”.

It opened the trading session at $12.04, the shares rose to $12.68 and dropped to $12.03, the range by which the price of stock traded the whole day. The daily chart for UMC points out that the company has recorded 27.00% gains over the past six months. However, it is still -69.86% lower than its most recent low trading price.

If we look at the average trading volume of 7.47M shares, UMC reached to a volume of 18396993 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about United Microelectronics Corporation [UMC]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for UMC shares is $14.34 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on UMC stock is a recommendation set at 2.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

JP Morgan have made an estimate for United Microelectronics Corporation shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on July 28, 2021. While these analysts kept the previous recommendation, Bernstein dropped their target price from $8.40 to $7.30. The new note on the price target was released on June 08, 2021, representing the official price target for United Microelectronics Corporation stock.

The Average True Range (ATR) for United Microelectronics Corporation is set at 0.39, with the Price to Sales ratio for UMC stock in the period of the last 12 months amounting to 4.12. The Price to Book ratio for the last quarter was 3.22, with the Price to Cash per share for the same quarter was set at 1.79. Price to Free Cash Flow for UMC in the course of the last twelve months was 23.78 with Quick ratio for the last quarter at 2.20.

Trading performance analysis for UMC stock

United Microelectronics Corporation [UMC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 8.04. With this latest performance, UMC shares gained by 18.16% in over the last four-week period, additionally plugging by 27.00% over the last 6 months – not to mention a rise of 64.82% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for UMC stock in for the last two-week period is set at 68.00, with the RSI for the last a single of trading hit 73.04, and the three-weeks RSI is set at 63.89 for United Microelectronics Corporation [UMC]. The present Moving Average for the last 50 days of trading for this stock 11.02, while it was recorded at 11.57 for the last single week of trading, and 10.08 for the last 200 days.

United Microelectronics Corporation [UMC]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and United Microelectronics Corporation [UMC] shares currently have an operating margin of +8.91 and a Gross Margin at +19.92. United Microelectronics Corporation’s Net Margin is presently recorded at +16.51.

Return on Total Capital for UMC is now 5.23, given the latest momentum, and Return on Invested Capital for the company is 11.11. Return on Equity for this stock inclined to 13.19, with Return on Assets sitting at 7.81. When it comes to the capital structure of this company, United Microelectronics Corporation [UMC] has a Total Debt to Total Equity ratio set at 29.02. Additionally, UMC Total Debt to Total Capital is recorded at 22.49, with Total Debt to Total Assets ending up at 18.12. Long-Term Debt to Equity for the company is recorded at 12.64, with the Long-Term Debt to Total Capital now at 9.80.

Receivables Turnover for the company is 6.33 with a Total Asset Turnover recorded at a value of 0.47.United Microelectronics Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.20 and a Current Ratio set at 2.50.

United Microelectronics Corporation [UMC]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, United Microelectronics Corporation posted 0.05/share EPS, while the average EPS was predicted by analysts to be reported at 0.07/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -28.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for UMC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for United Microelectronics Corporation go to 29.00%.

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An analysis of insider ownership at United Microelectronics Corporation [UMC]

Positions in United Microelectronics Corporation stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 134 institutional holders increased their position in United Microelectronics Corporation [NYSE:UMC] by around 41,842,191 shares. Additionally, 80 investors decreased positions by around 14,160,947 shares, while 32 investors held positions by with 69,149,734 shares. The mentioned changes placed institutional holdings at 125,152,872 shares, according to the latest SEC report filing. UMC stock had 46 new institutional investments in for a total of 17,442,262 shares, while 21 institutional investors sold positions of 2,507,578 shares during the same period.