Universal Display Corporation (NASDAQ:OLED) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Universal Display has a consensus analyst rating of “Hold” from six brokerage firms, with an average 12-month price target of $130.60.
• The company’s latest quarterly results missed expectations, reporting EPS of $0.76 versus $1.13 expected and revenue of $142.21 million versus $161.23 million expected, while revenue fell 14.5% year over year.
• Universal Display also announced a quarterly dividend of $0.50 per share, implying an annualized yield of about 2.2%, even as institutional investors continue to hold a large stake in the company.

Universal Display Corporation (NASDAQ:OLED - Get Free Report) has been assigned an average recommendation of "Hold" from the six research firms that are presently covering the stock, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, two have assigned a hold recommendation and three have assigned a buy recommendation to the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $130.60.

A number of research firms have recently commented on OLED. The Goldman Sachs Group set a $135.00 target price on shares of Universal Display in a report on Tuesday, April 21st. Wall Street Zen raised shares of Universal Display from a "sell" rating to a "hold" rating in a research report on Sunday, February 22nd. Oppenheimer reduced their price target on shares of Universal Display from $160.00 to $130.00 and set an "outperform" rating for the company in a research report on Friday, May 1st. Roth Mkm set a $168.00 price objective on shares of Universal Display in a report on Friday, May 1st. Finally, Citigroup cut their price objective on shares of Universal Display from $105.00 to $100.00 and set a "neutral" rating on the stock in a report on Monday, May 4th.

Trending Headlines about Universal Display

Here are the key news stories impacting Universal Display this week:

• Positive Sentiment: Zacks Research slightly raised its longer-term outlook for Universal Display, increasing FY2028 EPS estimates to $5.61 from $5.58 and lifting Q4 2027 EPS to $1.29 from $1.26, which suggests some improvement in expected earnings power. Universal Display analyst estimate updates
• Neutral Sentiment: The firm also nudged Q3 2027 EPS higher to $1.35 from $1.30, reinforcing that analysts see stronger earnings potential further out even as the rating remains bearish. Universal Display analyst estimate updates
• Negative Sentiment: Zacks trimmed several near- and medium-term estimates, including FY2026 EPS to $4.15 from $4.16, FY2027 EPS to $4.92 from $4.96, Q2 2027 EPS to $1.23 from $1.27, Q1 2027 EPS to $1.06 from $1.13, Q3 2026 EPS to $1.10 from $1.11, and Q2 2026 EPS to $1.03 from $1.04, signaling softer expectations ahead. Universal Display analyst estimate cuts
• Negative Sentiment: These revisions matter because Universal Display’s recent quarterly results already disappointed, with the company missing consensus EPS and revenue estimates, so investors may view the stock as facing ongoing earnings headwinds. Universal Display earnings history

Universal Display Stock Performance

Shares of OLED stock opened at $88.94 on Monday. The firm's 50-day moving average is $92.94 and its 200-day moving average is $105.07. The stock has a market cap of $4.16 billion, a price-to-earnings ratio of 19.85 and a beta of 1.54. Universal Display has a 52-week low of $83.64 and a 52-week high of $162.36.

Universal Display (NASDAQ:OLED - Get Free Report) last issued its earnings results on Thursday, April 30th. The semiconductor company reported $0.76 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.13 by ($0.37). The firm had revenue of $142.21 million during the quarter, compared to the consensus estimate of $161.23 million. Universal Display had a net margin of 34.08% and a return on equity of 12.34%. The firm's revenue for the quarter was down 14.5% compared to the same quarter last year. During the same period in the previous year, the company posted $1.35 earnings per share. Sell-side analysts predict that Universal Display will post 4.23 EPS for the current fiscal year.

Universal Display Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 16th will be issued a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend is Tuesday, June 16th. Universal Display's payout ratio is presently 44.64%.

Hedge Funds Weigh In On Universal Display

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Norges Bank purchased a new position in Universal Display in the fourth quarter worth about $92,756,000. Vanguard Group Inc. boosted its holdings in shares of Universal Display by 10.0% in the 3rd quarter. Vanguard Group Inc. now owns 5,069,107 shares of the semiconductor company's stock worth $728,076,000 after purchasing an additional 460,792 shares during the period. JPMorgan Chase & Co. boosted its holdings in shares of Universal Display by 86.4% in the 4th quarter. JPMorgan Chase & Co. now owns 880,678 shares of the semiconductor company's stock worth $102,846,000 after purchasing an additional 408,315 shares during the period. Analog Century Management LP purchased a new position in shares of Universal Display in the 4th quarter worth approximately $46,914,000. Finally, UBS Group AG boosted its holdings in shares of Universal Display by 100.8% in the 4th quarter. UBS Group AG now owns 646,787 shares of the semiconductor company's stock worth $75,532,000 after purchasing an additional 324,677 shares during the period. Institutional investors own 78.19% of the company's stock.

About Universal Display

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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