Universal Display (NASDAQ:OLED) Trading Down 8.8% - Here's Why

Key Points

• Universal Display shares fell 8.8% to about $76.23, trading below both their 50-day and 200-day moving averages.
• Several analysts recently cut their price targets, including Oppenheimer, Needham, Susquehanna, and Citigroup. The stock carries a consensus “Hold” rating and an average target of $116.33.
• Although quarterly EPS of $1.06 exceeded estimates, revenue of $152.16 million missed expectations and declined 11.4% year over year, while earnings also fell from $1.41 per share a year earlier.

Shares of Universal Display Corporation (NASDAQ:OLED - Get Free Report) traded down 8.8% during mid-day trading on Monday . The stock traded as low as $76.25 and last traded at $76.2290. Approximately 735,394 shares traded hands during trading, a decline of 8% from the average session volume of 797,644 shares. The stock had previously closed at $83.56.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the company. Oppenheimer reiterated an "outperform" rating and issued a $120.00 target price (down from $130.00) on shares of Universal Display in a report on Friday, July 31st. Needham & Company LLC dropped their price target on Universal Display from $120.00 to $100.00 and set a "buy" rating on the stock in a research report on Friday, July 31st. Susquehanna decreased their price objective on shares of Universal Display from $110.00 to $90.00 and set a "neutral" rating for the company in a report on Friday, July 31st. Zacks Research upgraded shares of Universal Display from a "strong sell" rating to a "hold" rating in a research report on Thursday, August 13th. Finally, Citigroup decreased their target price on Universal Display from $100.00 to $85.00 and set a "neutral" rating for the company in a research note on Monday, August 3rd. Three 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. According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $116.33.

Universal Display Stock Down 9.1%

The firm's 50 day simple moving average is $83.49 and its 200 day simple moving average is $89.90. The company has a market cap of $3.49 billion, a price-to-earnings ratio of 18.40 and a beta of 1.56.

Universal Display (NASDAQ:OLED - Get Free Report) last posted its earnings results on Thursday, July 30th. The semiconductor company reported $1.06 EPS for the quarter, beating the consensus estimate of $1.03 by $0.03. The firm 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 firm's revenue was down 11.4% compared to the same quarter last year. During the same period last year, the firm earned $1.41 EPS. Analysts anticipate that Universal Display Corporation will post 4.17 EPS for the current fiscal year.

Universal Display Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders 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 dividend yield of 2.6%. Universal Display's dividend payout ratio (DPR) is 48.43%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Focus Partners Wealth boosted its position in shares of Universal Display by 6.4% in the first quarter. Focus Partners Wealth now owns 3,680 shares of the semiconductor company's stock valued at $513,000 after acquiring an additional 221 shares during the period. American Century Companies Inc. lifted its position in Universal Display by 2.3% during the 2nd quarter. American Century Companies Inc. now owns 12,766 shares of the semiconductor company's stock worth $1,972,000 after buying an additional 285 shares in the last quarter. Invesco Ltd. boosted its stake in Universal Display by 1.8% in the second quarter. Invesco Ltd. now owns 112,982 shares of the semiconductor company's stock valued at $17,451,000 after acquiring an additional 2,040 shares during the last quarter. Marshall Wace LLP bought a new stake in Universal Display during the 2nd quarter worth approximately $2,220,000. Finally, Cresset Asset Management LLC lifted its position in Universal Display by 64.2% during the 2nd quarter. Cresset Asset Management LLC now owns 2,512 shares of the semiconductor company's stock worth $388,000 after buying an additional 982 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.

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