The stock of United Microelectronics Corporation (NYSE:UMC) is now priced at $3.66 and the shares are -0.21 points down or -5.43% lower compared to its previous closing price of $3.87. The stock had 4.695 million contracts set over the past session. UMC shares’ daily volume is compared to its average trading volume at 1.152 million shares. However, it has a float of 2260 million and although its performance was 26.64% over the week, it’s one to watch. Analysts have given the UMC stock a yearly average price target of $2.68 per share. It means the stock’s downside potential is -26.78% with the UMC share price recently placing at $3.6 to $3.98. However, some brokerage firms have priced the stock below the average, including one that has called $2.5.
The shorts are running away from the United Microelectronics Corporation stock, with the latest data on short interest released on June 30, 2020, showing that short interest numbers in the UMC shares have declined. Short interest in the stock represents just 0.04% of its float, but the volume has dropped by 0.
In the last trading session, United Microelectronics Corporation (NYSE:UMC) raised by $0.77 over the week and gained $1.08 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $4.1. The stock recorded its established 52-week high on 07/27/20.
Since 08/15/19, the stock has traded to a low of $1.99 at 83.92%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 0.99. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, United Microelectronics Corporation’s two-week RSI is 75.57. This suggests that the stock is oversold at the moment and that UMC shares’ price movement remains not stable. The stochastic readings are equally revealing at 75.14% meaning the UMC share price is currently in oversold territory.
The technical chart shows that the UMC stock will likely settle at between $3.89 and $4.13 per share. However, if the stock dips below $3.51, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $3.37.
Currently, the stock is trading in the green of MACD, with a reading of 0.47. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Macquarie cut their recommendation for UMC from Outperform to Neutral in June 10 review. JP Morgan analysts downgraded their recommendation of the stock from Neutral to Underweight in a flash note released to investors on March 12. Jefferies seeing the improvements upgraded the stock from Hold to Buy on February 06.
The average rating for the UMC equity is 3 and is currently gathering a bullish momentum. Of 2 analysts tracking United Microelectronics Corporation polled by Reuters, 2 rated UMC as a hold. The remaining 0 analysts were split evenly. However, the split wasn’t equal as a majority (0) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the UMC stock price is 16.64X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 31.7 above the group’s average of 27.5. United Microelectronics Corporation has its P/E ratio at 1.3, which means that the stock is currently trading at a discount relative to the 5.6 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for United Microelectronics Corporation (NYSE:UMC) will decrease by about -96.55%, which will see them reach $1.46 billion. The company’s full-year revenues are, however, expected to increase by about 16.88%, up from $4800 million to $5610 million. UMC’s expected adjusted earnings should surge almost 150% to end up at $0.05 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 30.77% to record $0.17/share.