Universal Display (NASDAQ:OLED) Reaches New 52-Week Low - Time to Sell?

Key Points

• Universal Display shares fell to a new 52-week low, trading as low as $75.89 and below both their 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans neutral: the stock has a consensus “Hold” rating and an average price target of $116.33, although several firms recently cut their targets or downgraded the shares.
• Recent results showed adjusted strength and underlying pressure: EPS of $1.06 beat estimates, but revenue declined 11.4% year over year to $152.16 million. The company also declared a quarterly dividend of $0.50 per share, representing a 2.6% yield.

Universal Display Corporation (NASDAQ:OLED - Get Free Report) shares hit a new 52-week low during trading on Tuesday . The company traded as low as $75.89 and last traded at $76.62, with a volume of 1253573 shares trading hands. The stock had previously closed at $83.56.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on OLED. Oppenheimer reaffirmed an "outperform" rating and issued a $120.00 target price (down from $130.00) on shares of Universal Display in a research report on Friday, July 31st. Citigroup dropped their price target on shares of Universal Display from $100.00 to $85.00 and set a "neutral" rating for the company in a research note on Monday, August 3rd. BTIG Research downgraded shares of Universal Display to a "neutral" rating in a research note on Friday, July 31st. Needham & Company LLC decreased their price objective on shares of Universal Display from $120.00 to $100.00 and set a "buy" rating for the company 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 investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $116.33.

Universal Display Price Performance

The business's fifty day simple moving average is $83.42 and its 200 day simple moving average is $89.69. The stock has a market cap of $3.52 billion, a price-to-earnings ratio of 18.55 and a beta of 1.56.

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

Universal Display Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be issued 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 dividend yield of 2.6%. Universal Display's dividend payout ratio is 48.43%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Tidal Investments LLC grew its holdings in shares of Universal Display by 84.0% during the 2nd 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 in the last quarter. WINTON GROUP Ltd raised its holdings in shares of Universal Display by 381.2% during the second quarter. WINTON GROUP Ltd now owns 62,919 shares of the semiconductor company's stock worth $5,448,000 after acquiring an additional 49,844 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new stake in Universal Display during the second quarter valued at $195,000. Governors Lane LP acquired a new stake in Universal Display during the second quarter valued at $11,358,000. Finally, Allworth Financial LP grew 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 in the last quarter. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.