Universal Display (NASDAQ:OLED) Raised to Strong-Buy at Zacks Investment Research

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Zacks Investment Research upgraded shares of Universal Display (NASDAQ:OLED) from a hold rating to a strong-buy rating in a research note published on Friday, Zacks.com reports. Zacks Investment Research currently has $212.00 price objective on the semiconductor company’s stock.

According to Zacks, “Universal Display delivered stellar third-quarter results. Both earnings and revenues improved on a year-over-year basis. Surge in material sales and green emitter sales drove the top line. Improving demand from panel makers based in Korea and China holds promise. Anticipating this momentum to continue, the company raised fiscal 2019 guidance. Moreover, synergies from Adesis acquisition remain a key positive. Further, efforts to reward shareholders through dividend payments are noteworthy. Notably, shares of Universal Display have outperformed the industry in the past year. Further, growing clout of OLED panels in automotive end-markets is a tailwind. However, intensifying competition and long lead times are major headwinds. Further, significant customer concentration from few customers like Samsung and LG is an overhang.”

Several other equities analysts have also issued reports on the stock. Susquehanna Bancshares reiterated a negative rating on shares of Universal Display in a report on Thursday, September 12th. Deutsche Bank set a $230.00 target price on shares of Universal Display and gave the company a buy rating in a report on Friday, August 16th. ValuEngine lowered shares of Universal Display from a buy rating to a hold rating in a report on Wednesday, October 2nd. Roth Capital lifted their target price on shares of Universal Display from $172.00 to $206.00 and gave the company a neutral rating in a report on Friday, August 2nd. Finally, Benchmark set a $175.00 target price on shares of Universal Display and gave the company a buy rating in a report on Tuesday, September 17th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating, four have issued a buy rating and one has given a strong buy rating to the company. The stock currently has an average rating of Hold and an average target price of $195.85.

OLED traded up $0.12 on Friday, hitting $201.67. The company had a trading volume of 452,700 shares, compared to its average volume of 735,481. Universal Display has a 52-week low of $78.78 and a 52-week high of $230.32. The stock has a fifty day simple moving average of $175.36 and a 200-day simple moving average of $183.34. The firm has a market capitalization of $9.37 billion, a P/E ratio of 162.64, a P/E/G ratio of 2.17 and a beta of 1.52.

Universal Display (NASDAQ:OLED) last released its earnings results on Wednesday, October 30th. The semiconductor company reported $0.78 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.57 by $0.21. Universal Display had a net margin of 35.10% and a return on equity of 17.81%. The firm had revenue of $97.50 million during the quarter, compared to analyst estimates of $85.88 million. During the same period last year, the business earned $0.48 earnings per share. The business’s revenue was up 25.6% on a year-over-year basis. On average, analysts anticipate that Universal Display will post 3.05 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 31st. Investors of record on Friday, December 13th will be given a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 0.20%. The ex-dividend date is Thursday, December 12th. Universal Display’s dividend payout ratio (DPR) is currently 32.26%.

In other Universal Display news, Director C Keith Hartley sold 10,528 shares of Universal Display stock in a transaction that occurred on Friday, August 9th. The shares were sold at an average price of $214.27, for a total value of $2,255,834.56. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Lawrence Lacerte sold 30,000 shares of Universal Display stock in a transaction that occurred on Wednesday, August 7th. The stock was sold at an average price of $205.84, for a total transaction of $6,175,200.00. Following the completion of the sale, the director now directly owns 308,536 shares of the company’s stock, valued at approximately $63,509,050.24. The disclosure for this sale can be found here. Insiders have sold 105,685 shares of company stock valued at $22,465,629 in the last three months. 3.70% of the stock is owned by insiders.

A number of large investors have recently bought and sold shares of OLED. Prudential Financial Inc. grew its position in Universal Display by 1,315.1% in the 2nd quarter. Prudential Financial Inc. now owns 355,338 shares of the semiconductor company’s stock worth $66,825,000 after purchasing an additional 330,228 shares during the period. Nuveen Asset Management LLC bought a new stake in Universal Display in the 2nd quarter worth approximately $61,236,000. FMR LLC grew its position in Universal Display by 156,745.0% in the 1st quarter. FMR LLC now owns 202,330 shares of the semiconductor company’s stock worth $30,926,000 after purchasing an additional 202,201 shares during the period. First Trust Advisors LP grew its position in Universal Display by 304.8% in the 2nd quarter. First Trust Advisors LP now owns 172,277 shares of the semiconductor company’s stock worth $32,398,000 after purchasing an additional 129,717 shares during the period. Finally, Griffin Asset Management Inc. grew its position in Universal Display by 24.5% in the 2nd quarter. Griffin Asset Management Inc. now owns 618,209 shares of the semiconductor company’s stock worth $116,260,000 after purchasing an additional 121,475 shares during the period. 69.08% 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 flat panel displays and solid-state lighting applications. As of February 21, 2019, it owned or had exclusive and co-exclusive licenses, or had sole license rights with respect to approximately 5,000 issued and pending patents worldwide.

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