Universal Display (NASDAQ:OLED) Cut to "Hold" at Zacks Research

Key Points

• Universal Display has been downgraded from a "strong-buy" to a "hold" rating by Zacks Research, signaling a shift in analyst sentiment about the stock.
• Despite the downgrade, other firms like Needham & Company maintain a "buy" rating, with a target price of $170.00, while the average consensus target price remains at $190.43.
• Universal Display reported strong earnings, with $1.41 earnings per share for the last quarter, exceeding expectations of $1.18, and showing an 8.4% year-over-year revenue increase.

Zacks Research lowered shares of Universal Display (NASDAQ:OLED - Free Report) from a strong-buy rating to a hold rating in a report issued on Tuesday, August 19th,Zacks.com reports.

Several other equities analysts also recently weighed in on OLED. Needham & Company LLC restated a "buy" rating and issued a $170.00 target price on shares of Universal Display in a research report on Friday, May 2nd. Wall Street Zen raised Universal Display from a "sell" rating to a "hold" rating in a report on Friday, May 2nd. Five analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $190.43.

Universal Display Price Performance

OLED stock traded up $1.48 during mid-day trading on Tuesday, reaching $144.41. 78,444 shares of the company's stock were exchanged, compared to its average volume of 647,985. The company has a market cap of $6.86 billion, a price-to-earnings ratio of 28.21, a price-to-earnings-growth ratio of 4.29 and a beta of 1.47. The stock's 50 day moving average is $149.28 and its 200 day moving average is $144.39. Universal Display has a 12-month low of $103.70 and a 12-month high of $215.90.

Universal Display (NASDAQ:OLED - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The semiconductor company reported $1.41 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.18 by $0.23. The company had revenue of $171.79 million for the quarter, compared to the consensus estimate of $161.58 million. Universal Display had a return on equity of 15.82% and a net margin of 36.95%.Universal Display's revenue for the quarter was up 8.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.10 earnings per share. Universal Display has set its FY 2025 guidance at EPS. On average, research analysts forecast that Universal Display will post 4.71 earnings per share for the current fiscal year.

Universal Display Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Tuesday, September 16th will be paid a $0.45 dividend. The ex-dividend date of this dividend is Tuesday, September 16th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 1.2%. Universal Display's payout ratio is presently 35.16%.

Institutional Investors Weigh In On Universal Display

A number of institutional investors have recently modified their holdings of OLED. Rise Advisors LLC grew its stake in shares of Universal Display by 87.9% in the first quarter. Rise Advisors LLC now owns 186 shares of the semiconductor company's stock valued at $26,000 after buying an additional 87 shares in the last quarter. Orion Capital Management LLC acquired a new stake in shares of Universal Display in the fourth quarter valued at $29,000. Whittier Trust Co. purchased a new position in Universal Display in the second quarter valued at $30,000. Parkside Financial Bank & Trust boosted its holdings in Universal Display by 236.7% in the second quarter. Parkside Financial Bank & Trust now owns 202 shares of the semiconductor company's stock valued at $31,000 after purchasing an additional 142 shares during the period. Finally, Golden State Wealth Management LLC boosted its holdings in Universal Display by 4,700.0% in the first quarter. Golden State Wealth Management LLC now owns 240 shares of the semiconductor company's stock valued at $33,000 after purchasing an additional 235 shares during the period. 78.19% of the stock is owned by institutional investors and hedge funds.

About Universal Display

Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications in the United States and internationally. The company offers PHOLED technologies and materials for displays and lighting products under the UniversalPHOLED brand.