United Microelectronics Corporation (NYSE:UMC) has been range bound between the range of $1.76 and $1.76 during the whole day. The stock finished Thursday at $1.79. The -2.19% downtrend forced its market value to reach at $4.56B. The price went up as high as $1.76 before retreating. Trading activity significantly improved as the volume at ready counter increased to 4,732,627 shares versus 1,321,435 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,132,586 shares. The stock is now 9.15% above against its bear-market low of $1.64 on November 13, 2018. It has retreated -75.42% since it’s 52-week high of $3.14 reached in June. Now the market price is down -30.08% on the year and down -25.1% YTD.
UMC’s 50 day simple moving average (SMA 50) price is $2 and its 200-day simple moving average (SMA 200) price is $2.52. The company’s stock currently has a total float of 2.08B shares. Its weekly volatility is hovering around 2.66% and felt 2.34% volatility in price over a month. On the upside, the share price will test short term resistance at around $1.81. On a downside, the stock is likely to find some support, which begins at $1.77. The failure to get near-term support could push it to $1.74.
Wall Street’s most bullish United Microelectronics Corporation (NYSE:UMC) analysts are predicting the share price to blow past $2.91 per share during the next 12 months. The current median share price forecast by them is $1.82, suggesting that the stock could increase 1.68% in that time frame. The average price target of $1.97 calls for a nearly 10.06% increase in the stock price.
It had seen a negative analyst call from UBS, which downgraded the stock from Buy to Neutral on November 06. Analysts at CLSA, shed their positive views on November 05 by lowering it fromUnderperform to Sell. The stock lost favor of HSBC Securities analysts who expressed their lack of confidence in it using a downgrade from Buy to Hold on October 25. Nomura analysts came out with bearish views on October 12 when the call was made. They think the stock is now Neutral compared to to their prior call for Buy.
When looking at valuations, United Microelectronics Corporation (UMC) has a cheap P/E of 13.56x as compared to industry average of 14.53x. Moreover, it trades for 11.93 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.63x price/book and 0.92x price/sales. Compared to others, United Microelectronics Corporation is in a different league with regards to profitability, having net margins of 6.9%. To put some perspective around this, the industry’s average net margin is 15.52%. UMC’s ROE is 5%, which is also considerably better than the industry’s ROE of -6.21%. It’s also very liquid in the near term, with a current ratio of 2.7. The stock has a debt/capital of 0.41.
Shares of United Microelectronics Corporation (UMC) have dropped -9% since the company’s Sep-18 earnings report. UMC last reported earnings on October 24, 2018 when it released Sep-18 results that receded expectations. The company raked in $0.02 per share, -99.87% change on the same period last year. That was worse than consensus for $0.02. Revenue for the recent quarter stood at $1.29 billion, up 5% on last year and above the $1.26 billion predicted by analysts.