Universal Display (OLED) Downgraded by Zacks Investment Research

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Zacks Investment Research cut shares of Universal Display (NASDAQ:OLED) from a hold rating to a sell rating in a research note issued to investors on Tuesday morning.

According to Zacks, “Sluggishness in the premium smartphone market doesn’t bode well for Universal Display. Shares of the company have underperformed the industry in the past year. Moreover, long lead times; intensifying competition and volatility in foreign exchange are major headwinds. However, the company is expected to benefit from strong end-market demand. New OLED-based product launches from premium handset makers like Apple, Google, Huawei, Oppo, Samsung, and Vivo are expected to augment order growth rate and the top line in the second half of the year and in 2019. Increasing capacity at major OEMs like Samsung and LG is a positive. Moreover, Universal Display’s patent portfolio strength is expected to drive growth in the long haul.”

Several other brokerages also recently commented on OLED. Cowen set a $175.00 target price on Universal Display and gave the stock an outperform rating in a report on Thursday, October 4th. BidaskClub raised Universal Display from a hold rating to a buy rating in a report on Thursday, October 4th. ValuEngine downgraded Universal Display from a buy rating to a hold rating in a report on Tuesday, September 4th. Citigroup assumed coverage on Universal Display in a report on Tuesday, September 4th. They set a buy rating and a $153.00 target price on the stock. Finally, CIBC lifted their target price on Universal Display from $120.00 to $140.00 and gave the stock an outperform rating in a report on Tuesday, September 25th. One analyst has rated the stock with a sell rating, two have issued a hold rating and twelve have issued a buy rating to the stock. The stock currently has an average rating of Buy and an average price target of $167.58.

Shares of OLED opened at $111.35 on Tuesday. The stock has a market cap of $5.44 billion, a price-to-earnings ratio of 45.82 and a beta of 1.81. Universal Display has a 12 month low of $78.75 and a 12 month high of $209.00.

Universal Display (NASDAQ:OLED) last announced its earnings results on Thursday, August 9th. The semiconductor company reported $0.23 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.15 by $0.08. The firm had revenue of $56.15 million for the quarter, compared to the consensus estimate of $49.64 million. Universal Display had a return on equity of 11.59% and a net margin of 22.76%. The business’s quarterly revenue was down 45.2% compared to the same quarter last year. During the same period in the previous year, the business earned $0.99 EPS. Equities analysts anticipate that Universal Display will post 1.83 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 28th. Stockholders of record on Saturday, September 15th were paid a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.22%. The ex-dividend date of this dividend was Thursday, September 13th. Universal Display’s dividend payout ratio is 9.88%.

In other news, VP Mauro Premutico sold 10,044 shares of the business’s stock in a transaction dated Tuesday, September 4th. The stock was sold at an average price of $123.63, for a total value of $1,241,739.72. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Lawrence Lacerte sold 15,000 shares of the business’s stock in a transaction dated Tuesday, August 14th. The shares were sold at an average price of $119.51, for a total value of $1,792,650.00. Following the completion of the transaction, the director now directly owns 348,950 shares in the company, valued at $41,703,014.50. The disclosure for this sale can be found here. 4.00% of the stock is owned by insiders.

Large investors have recently made changes to their positions in the company. Epoch Investment Partners Inc. increased its position in Universal Display by 2.3% in the 2nd quarter. Epoch Investment Partners Inc. now owns 3,518,398 shares of the semiconductor company’s stock valued at $302,583,000 after buying an additional 78,075 shares in the last quarter. BlackRock Inc. increased its position in Universal Display by 17.6% in the 1st quarter. BlackRock Inc. now owns 1,985,898 shares of the semiconductor company’s stock valued at $200,576,000 after buying an additional 297,565 shares in the last quarter. Millennium Management LLC increased its position in Universal Display by 479.7% in the 2nd quarter. Millennium Management LLC now owns 740,149 shares of the semiconductor company’s stock valued at $63,653,000 after buying an additional 612,476 shares in the last quarter. Wells Fargo & Company MN increased its position in Universal Display by 8.0% in the 2nd quarter. Wells Fargo & Company MN now owns 703,597 shares of the semiconductor company’s stock valued at $60,509,000 after buying an additional 52,030 shares in the last quarter. Finally, Frontier Capital Management Co. LLC increased its position in Universal Display by 18.7% in the 2nd quarter. Frontier Capital Management Co. LLC now owns 694,409 shares of the semiconductor company’s stock valued at $59,719,000 after buying an additional 109,468 shares in the last quarter. 72.59% of the stock is currently owned by institutional investors.

Universal Display Company Profile

Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in flat panel displays and solid-state lighting applications. As of February 22, 2018, it owned or had exclusive and co-exclusive licenses, or had sole license rights with respect to approximately 4,500 issued and pending patents worldwide.

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