Universal Display (NASDAQ:OLED) Sets New 1-Year Low - Should You Sell?

Key Points

• Universal Display shares fell to a new 52-week low of $72.70, significantly below the average analyst target of $114.00.
• Analyst sentiment has weakened: several firms cut price targets or ratings, resulting in a consensus rating of “Hold”, with two analysts recommending Sell.
• Quarterly EPS slightly exceeded estimates, but revenue missed expectations and declined 11.4% year over year. The company continues to pay a $0.50 quarterly dividend, representing a 2.7% yield.

Universal Display Corporation (NASDAQ:OLED - Get Free Report)'s share price hit a new 52-week low during trading on Thursday. The stock traded as low as $72.70 and last traded at $73.0420, with a volume of 61499 shares changing hands. The stock had previously closed at $77.22.

Analysts Set New Price Targets

A number of analysts have recently weighed in on OLED shares. Needham & Company LLC reduced their target price on shares of Universal Display from $120.00 to $100.00 and set a "buy" rating on the stock in a research report on Friday, July 31st. BTIG Research cut shares of Universal Display to a "neutral" rating in a research report on Friday, July 31st. Citigroup lowered shares of Universal Display from a "neutral" rating to a "sell" rating and set a $71.00 price objective on the stock. in a research note on Thursday. Susquehanna cut their price objective on shares of Universal Display from $110.00 to $90.00 and set a "neutral" rating on the stock in a report on Friday, July 31st. Finally, Oppenheimer reaffirmed an "outperform" rating and set a $120.00 target price (down from $130.00) on shares of Universal Display in a research note on Friday, July 31st. Three equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $114.00.

Universal Display Price Performance

The stock has a market capitalization of $3.35 billion, a PE ratio of 17.62 and a beta of 1.53. The business has a 50 day moving average price of $82.45 and a 200 day moving average price of $87.04.

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 the consensus estimate of $1.03 by $0.03. The firm had revenue of $152.16 million during the quarter, compared to analyst estimates of $157.54 million. Universal Display had a return on equity of 11.35% and a net margin of 32.24%.Universal Display's quarterly revenue was down 11.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.41 EPS. On average, equities analysts expect 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 was paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th were issued a $0.50 dividend. The ex-dividend date of this dividend was Wednesday, September 16th. This represents a $2.00 annualized dividend and a yield of 2.7%. Universal Display's payout ratio is 48.43%.

Institutional Investors Weigh In On Universal Display

A number of institutional investors have recently made changes to their positions in the company. XXEC Inc. purchased a new position in Universal Display in the 2nd quarter worth approximately $2,508,286,000. BlackRock Inc. purchased a new stake in Universal Display during the 2nd quarter valued at $373,931,000. Primecap Management Co. CA purchased a new stake in Universal Display during the 2nd quarter valued at $190,136,000. First Trust Advisors LP increased its holdings in shares of Universal Display by 21.1% in the 1st quarter. First Trust Advisors LP now owns 976,423 shares of the semiconductor company's stock worth $89,499,000 after purchasing an additional 169,969 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Universal Display by 4.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 757,166 shares of the semiconductor company's stock worth $69,398,000 after purchasing an additional 30,661 shares in the last quarter. Hedge funds and other institutional investors own 78.19% of the company's stock.

About Universal Display

Universal Display Corporation develops and commercializes technologies and materials used in organic light-emitting diode (OLED) displays and lighting. The company's portfolio includes phosphorescent OLED (PHOLED) technologies, which are designed to improve display efficiency, as well as OLED material systems and related technologies.

Universal Display generates revenue primarily through licensing its OLED intellectual property and selling OLED materials, including phosphorescent emitter materials and related products.

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.