Universal Display (NASDAQ:OLED) Hits New 12-Month Low - Should You Sell?

Key Points

• Universal Display shares fell to a new 52-week low of $75.46, trading below both their 50-day and 200-day moving averages. The company has a $3.41 billion market capitalization and a P/E ratio of 18.08.
• Analyst sentiment is mixed but leans cautious: the consensus rating is “Hold” with an average price target of $116.33, while several firms recently cut targets or downgraded the stock, including BTIG Research to “Neutral” and Weiss Ratings to “Sell.”
• Quarterly earnings of $1.06 per share beat estimates, but revenue of $152.16 million missed expectations and declined 11.4% year over year. Universal Display declared a quarterly dividend of $0.50 per share, representing a 2.7% annualized yield.

Universal Display Corporation (NASDAQ:OLED - Get Free Report) reached a new 52-week low during trading on Thursday . The stock traded as low as $75.46 and last traded at $75.4830, with a volume of 19327 shares. The stock had previously closed at $76.71.

Analyst Ratings Changes

Several brokerages have issued reports on OLED. Oppenheimer reissued an "outperform" rating and issued a $120.00 price target (down from $130.00) on shares of Universal Display in a research note on Friday, July 31st. BTIG Research lowered shares of Universal Display to a "neutral" rating in a research note on Friday, July 31st. Susquehanna lowered their price target on Universal Display from $110.00 to $90.00 and set a "neutral" rating for the company in a research report on Friday, July 31st. Weiss Ratings cut Universal Display from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, July 28th. Finally, Zacks Research raised shares of Universal Display from a "strong sell" rating to a "hold" rating in a 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 MarketBeat.com, Universal Display has an average rating of "Hold" and an average target price of $116.33.

Universal Display Trading Down 3.2%

The company's 50-day simple moving average is $83.13 and its 200 day simple moving average is $88.35. The stock has a market cap of $3.41 billion, a P/E ratio of 18.08 and a beta of 1.56.

Universal Display (NASDAQ:OLED - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The semiconductor company reported $1.06 earnings per share for the quarter, topping the consensus estimate of $1.03 by $0.03. The business had revenue of $152.16 million for the quarter, compared to analysts' expectations of $157.54 million. Universal Display had a return on equity of 11.35% and a net margin of 32.24%.The business's revenue was down 11.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.41 earnings per share. Research analysts anticipate that Universal Display Corporation will post 4.17 earnings per share for the current fiscal year.

Universal Display Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th will be given a dividend of $0.50 per share. The ex-dividend date is Wednesday, September 16th. This represents a $2.00 annualized dividend and a yield of 2.7%. Universal Display's dividend payout ratio is presently 48.43%.

Institutional Trading of Universal Display

Hedge funds have recently added to or reduced their stakes in the stock. Tidal Investments LLC boosted its stake in Universal Display by 84.0% in the second quarter. Tidal Investments LLC now owns 25,257 shares of the semiconductor company's stock valued at $2,187,000 after acquiring an additional 11,529 shares during the last quarter. WINTON GROUP Ltd raised its holdings in shares of Universal Display by 381.2% in the 2nd quarter. WINTON GROUP Ltd now owns 62,919 shares of the semiconductor company's stock worth $5,448,000 after purchasing an additional 49,844 shares during the period. Integrated Wealth Concepts LLC bought a new stake in shares of Universal Display in the 2nd quarter worth approximately $195,000. Governors Lane LP purchased a new position in Universal Display in the second quarter valued at approximately $11,358,000. Finally, Allworth Financial LP lifted its stake in Universal Display by 82.2% in the second quarter. Allworth Financial LP now owns 2,074 shares of the semiconductor company's stock valued at $180,000 after purchasing an additional 936 shares during the last quarter. Institutional investors own 78.19% of the company's stock.

About Universal Display

Universal Display Corporation NASDAQ: OLED develops and commercializes organic light-emitting diode (OLED) technologies and materials. The company's business is centered on high-efficiency phosphorescent OLED (PHOLED) technology, which is designed to improve the performance and energy efficiency of OLED displays and lighting products.

Universal Display supplies OLED emitter materials and other related products to manufacturers and provides technology licenses, technical assistance and support under agreements covering its intellectual property.

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