Is United Microelectronics Corp (ADR) (UMC) A Good Stock to Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cut their positions entirely. It’s worth mentioning that Satyen Mehta’s Neon Liberty Capital Management cut the biggest stake of all the investors tracked by Insider Monkey, totaling an estimated $2.7 million in stock, and Ernest Chow and Jonathan Howe’s Sensato Capital Management was right behind this move, as the fund dumped about $0.5 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as United Microelectronics Corp (ADR) (NYSE:UMC) but similarly valued. We will take a look at National Fuel Gas Co. (NYSE:NFG), Navient Corp (NASDAQ:NAVI), Amtrust Financial Services, Inc. (NASDAQ:AFSI), and Banco Macro SA (ADR) (NYSE:BMA). This group of stocks’ market caps match UMC’s market cap.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $246 million. That figure was $31 million in UMC’s case. Navient Corp (NASDAQ:NAVI) is the most popular stock in this table. On the other hand Banco Macro SA (ADR) (NYSE:BMA) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks United Microelectronics Corp (ADR) (NYSE:UMC) is even less popular than BMA. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock.

Disclosure: None