Citigroup Issues Pessimistic Forecast for Universal Display (NASDAQ:OLED) Stock Price

Key Points

• Citigroup cut its price target on Universal Display from $105 to $100 and kept a neutral rating, implying only about a 4.6% upside from the recent share price.
• Analyst coverage is mixed — three Buys, two Holds and one Sell — with a MarketBeat consensus target of $130.60, reflecting wide divergence in views on the stock's outlook.
• Universal Display reported an earnings miss (Q1 EPS $0.76 vs. $1.13 expected) and revenue of $142.2M (down 14.5% year-over-year); shares traded near $95.61, below the 200-day moving average of $114.76.

Universal Display (NASDAQ:OLED - Get Free Report) had its price target dropped by Citigroup from $105.00 to $100.00 in a research report issued on Monday,Benzinga reports. The brokerage currently has a "neutral" rating on the semiconductor company's stock. Citigroup's target price indicates a potential upside of 4.60% from the company's current price.

OLED has been the subject of several other reports. Weiss Ratings restated a "hold (c-)" rating on shares of Universal Display in a report on Monday, March 23rd. Zacks Research lowered Universal Display from a "hold" rating to a "strong sell" rating in a research report on Tuesday, April 21st. Needham & Company LLC lowered their target price on Universal Display from $145.00 to $120.00 and set a "buy" rating for the company in a research note on Friday. Wall Street Zen upgraded shares of Universal Display from a "sell" rating to a "hold" rating in a report on Sunday, February 22nd. Finally, Roth Mkm set a $168.00 target price on shares of Universal Display in a report on Friday. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $130.60.

Universal Display Price Performance

Shares of NASDAQ OLED traded down $0.79 during midday trading on Monday, reaching $95.61. 584,481 shares of the stock were exchanged, compared to its average volume of 804,830. Universal Display has a 12 month low of $83.64 and a 12 month high of $163.21. The company has a market capitalization of $4.47 billion, a price-to-earnings ratio of 21.43, a P/E/G ratio of 7.97 and a beta of 1.54. The business has a 50-day simple moving average of $96.82 and a two-hundred day simple moving average of $114.76.

Universal Display (NASDAQ:OLED - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The semiconductor company reported $0.76 EPS for the quarter, missing analysts' consensus estimates of $1.13 by ($0.37). The firm had revenue of $142.21 million during the quarter, compared to the consensus estimate of $161.23 million. Universal Display had a net margin of 34.08% and a return on equity of 12.34%. Universal Display's quarterly revenue was down 14.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.35 EPS. Equities research analysts expect that Universal Display will post 4.73 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of OLED. Smartleaf Asset Management LLC lifted its position in Universal Display by 309.8% during the 3rd quarter. Smartleaf Asset Management LLC now owns 209 shares of the semiconductor company's stock worth $30,000 after buying an additional 158 shares in the last quarter. Measured Wealth Private Client Group LLC bought a new position in shares of Universal Display in the 3rd quarter valued at about $33,000. Pilgrim Partners Asia Pte Ltd acquired a new stake in shares of Universal Display in the third quarter valued at about $37,000. Farther Finance Advisors LLC raised its holdings in Universal Display by 27.2% during the third quarter. Farther Finance Advisors LLC now owns 351 shares of the semiconductor company's stock worth $50,000 after acquiring an additional 75 shares in the last quarter. Finally, Jones Financial Companies Lllp raised its holdings in Universal Display by 104.2% during the third quarter. Jones Financial Companies Lllp now owns 388 shares of the semiconductor company's stock worth $58,000 after acquiring an additional 198 shares in the last quarter. 78.19% of the stock is currently owned by institutional investors.

About Universal Display

Universal Display Corporation NASDAQ: OLED is a technology company specializing in organic light-emitting diode (OLED) solutions. The company develops and commercializes materials, technologies and software used in the creation of OLED displays and lighting. Its offerings include proprietary phosphorescent OLED (PHOLED) materials, display driver integrated circuits and process technologies that enable higher efficiency, longer lifetimes and improved color performance for a range of display and lighting applications.

Universal Display's core business is licensing its extensive OLED patent portfolio to display manufacturers and providing them with the key organic materials needed for device fabrication.

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