XXEC Inc. Makes New $63.72 Million Investment in Universal Display Corporation $OLED

Key Points

• XXEC Inc. purchased 703,521 shares of Universal Display worth approximately $63.7 million, making the company its fourth-largest holding and giving XXEC a 1.53% stake. Institutional investors collectively own 78.19% of OLED.
• Analyst sentiment is largely neutral: Universal Display has an average “Hold” rating and a consensus price target of $116.33, while several firms recently lowered their targets or ratings.
• Despite beating quarterly EPS estimates ($1.06 versus $1.03), Universal Display reported revenue below expectations and an 11.4% year-over-year decline. The company also declared a quarterly dividend of $0.50 per share, representing a 2.4% annualized yield.

XXEC Inc. purchased a new position in shares of Universal Display Corporation (NASDAQ:OLED - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 703,521 shares of the semiconductor company's stock, valued at approximately $63,716,000. Universal Display accounts for about 0.1% of XXEC Inc.'s portfolio, making the stock its 4th largest holding. XXEC Inc. owned 1.53% of Universal Display as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also recently modified their holdings of OLED. Lido Advisors LLC increased its holdings in shares of Universal Display by 1.7% during the 3rd quarter. Lido Advisors LLC now owns 5,783 shares of the semiconductor company's stock worth $831,000 after buying an additional 95 shares during the last quarter. Sigma Planning Corp lifted its holdings in Universal Display by 1.0% in the fourth quarter. Sigma Planning Corp now owns 10,390 shares of the semiconductor company's stock valued at $1,210,000 after acquiring an additional 103 shares during the last quarter. Certuity LLC lifted its holdings in Universal Display by 4.3% in the third quarter. Certuity LLC now owns 2,556 shares of the semiconductor company's stock valued at $367,000 after acquiring an additional 105 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings in Universal Display by 5.7% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 1,999 shares of the semiconductor company's stock valued at $287,000 after acquiring an additional 108 shares during the last quarter. Finally, Public Employees Retirement System of Ohio grew its position in Universal Display by 0.8% in the third quarter. Public Employees Retirement System of Ohio now owns 13,979 shares of the semiconductor company's stock worth $2,008,000 after acquiring an additional 113 shares during the period. Hedge funds and other institutional investors own 78.19% of the company's stock.

Analyst Upgrades and Downgrades

OLED has been the topic of a number of research analyst reports. Citigroup reduced their target price on Universal Display from $100.00 to $85.00 and set a "neutral" rating on the stock in a research report on Monday, August 3rd. Needham & Company LLC lowered their price target on Universal Display from $120.00 to $100.00 and set a "buy" rating for the company in a report on Friday, July 31st. Roth Capital set a $168.00 price objective on shares of Universal Display in a report on Friday, May 1st. BTIG Research lowered shares of Universal Display to a "neutral" rating in a report on Friday, July 31st. Finally, Zacks Research raised shares of Universal Display from a "strong sell" rating to a "hold" rating in a research report on Thursday, August 13th. Three equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Universal Display has an average rating of "Hold" and an average target price of $116.33.

Universal Display Stock Performance

Universal Display stock opened at $84.85 on Friday. The company has a market capitalization of $3.90 billion, a PE ratio of 20.54 and a beta of 1.54. Universal Display Corporation has a fifty-two week low of $76.42 and a fifty-two week high of $153.38. The firm has a 50 day moving average price of $84.19 and a 200 day moving average price of $92.85.

Universal Display (NASDAQ:OLED - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The semiconductor company reported $1.06 EPS for the quarter, topping analysts' consensus estimates of $1.03 by $0.03. Universal Display had a return on equity of 11.35% and a net margin of 32.24%.The company had revenue of $152.16 million for the quarter, compared to analysts' expectations of $157.54 million. During the same period in the prior year, the firm earned $1.41 earnings per share. The firm's revenue was down 11.4% compared to the same quarter last year. As a group, equities research analysts forecast that Universal Display Corporation will post 4.17 earnings per share for the current year.

Universal Display Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th will be paid a dividend of $0.50 per share. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $2.00 annualized dividend and a yield of 2.4%. Universal Display's dividend payout ratio is presently 48.43%.

Universal Display Profile

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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