Universal Display Corporation (NASDAQ: OLED) recently faced a downgrade from Wall Street Zen, which lowered its rating from “hold” to “sell.” This change, reported on Saturday, highlights shifting sentiments among financial analysts regarding the company’s stock performance.
A variety of other research firms have weighed in on Universal Display, reflecting a mixed outlook on the semiconductor company’s future. Weiss Ratings maintained a “hold (c-)” rating on December 24, while Zacks Research adjusted its rating from “strong-buy” to “hold” on November 19. In contrast, Needham & Company LLC reaffirmed a “buy” rating with a price target of $150.00 on December 22. Currently, three analysts recommend buying the stock, while four suggest holding it. According to MarketBeat, Universal Display holds a consensus rating of “Hold” and a price target of approximately $177.60.
Financial Performance and Dividend Announcement
Universal Display disclosed its earnings on November 6, revealing earnings per share (EPS) of $0.92 for the quarter, falling short of the consensus estimate of $1.19 by $0.27. The company reported a return on equity of 14.10% and a net margin of 34.65%. Revenue for the quarter totaled $139.61 million, significantly below analyst expectations of $165.56 million. This figure represents a 13.6% decline compared to the same period last year when the company earned $1.40 EPS.
In another development, Universal Display announced a quarterly dividend of $0.45 per share, which was paid to shareholders on December 31. Those on record as of December 17 received this dividend, translating to an annualized yield of 1.5%. The company’s current payout ratio stands at 38.79%.
Institutional Investor Activity
Recent activity among institutional investors indicates a strategic shift in ownership stakes in Universal Display. Baker Avenue Asset Management LP acquired a new position during the second quarter, valued at approximately $1.4 million. Strs Ohio initiated a new stake worth $819,000 in the first quarter. Notably, Intech Investment Management LLC increased its stake by 174.3%, now holding 94,803 shares valued at $13.2 million after purchasing an additional 60,238 shares.
Creative Planning also expanded its holdings by 12.7%, owning 19,847 shares worth $3.1 million after acquiring 2,239 shares. Avenir Corp raised its stake by 14.5%, now controlling 223,150 shares valued at $34.5 million. Institutional investors and hedge funds collectively own 78.19% of Universal Display, suggesting significant confidence in the company’s potential.
Universal Display specializes in organic light-emitting diode (OLED) solutions, developing materials and technologies for OLED displays and lighting applications. The company licenses its extensive patent portfolio to display manufacturers, providing essential organic materials for device fabrication. As the market evolves, the company’s performance will be closely monitored by analysts and investors alike.
