Universal Display (NASDAQ:OLED) Shares Gap Up Following Strong Earnings

Shares of Universal Display Co. (NASDAQ:OLED) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $156.32, but opened at $171.00. Universal Display shares last traded at $165.70, with a volume of 121,402 shares trading hands.

The semiconductor company reported $1.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.05 by $0.14. Universal Display had a return on equity of 14.85% and a net margin of 35.22%. The company had revenue of $165.26 million during the quarter, compared to analysts’ expectations of $150.75 million. During the same period last year, the firm posted $0.83 earnings per share. The business’s revenue was up 26.7% on a year-over-year basis.

Universal Display Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, March 29th. Shareholders of record on Friday, March 15th were issued a $0.40 dividend. This is a boost from Universal Display’s previous quarterly dividend of $0.35. This represents a $1.60 annualized dividend and a yield of 0.94%. The ex-dividend date of this dividend was Thursday, March 14th. Universal Display’s dividend payout ratio is currently 37.74%.

Analyst Ratings Changes

Several research analysts have weighed in on OLED shares. Oppenheimer reiterated an “outperform” rating and set a $200.00 price objective (down previously from $210.00) on shares of Universal Display in a research report on Friday, February 23rd. TD Cowen boosted their price target on Universal Display from $165.00 to $210.00 and gave the company an “outperform” rating in a research note on Friday, February 23rd. Needham & Company LLC restated a “buy” rating and set a $198.00 price objective on shares of Universal Display in a research note on Friday. Finally, Citigroup reiterated a “neutral” rating and set a $180.00 target price (up from $161.00) on shares of Universal Display in a research report on Friday, January 19th. Two research analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Universal Display has a consensus rating of “Moderate Buy” and a consensus target price of $199.86.

Institutional Trading of Universal Display

Large investors have recently bought and sold shares of the business. Benjamin F. Edwards & Company Inc. bought a new stake in shares of Universal Display during the fourth quarter worth $25,000. Principal Securities Inc. bought a new stake in shares of Universal Display during the fourth quarter worth about $34,000. University of Texas Texas AM Investment Managment Co. acquired a new position in shares of Universal Display in the fourth quarter valued at approximately $35,000. Cape Investment Advisory Inc. raised its holdings in Universal Display by 1,977.8% in the 4th quarter. Cape Investment Advisory Inc. now owns 187 shares of the semiconductor company’s stock valued at $36,000 after buying an additional 178 shares during the last quarter. Finally, Orion Capital Management LLC acquired a new stake in Universal Display during the 3rd quarter worth approximately $31,000. 78.19% of the stock is owned by institutional investors and hedge funds.

Universal Display Stock Performance

The stock’s fifty day simple moving average is $163.30 and its two-hundred day simple moving average is $168.95. The stock has a market capitalization of $8.10 billion, a P/E ratio of 40.29, a price-to-earnings-growth ratio of 1.66 and a beta of 1.44.

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.