Zacks Investment Research lowered shares of Universal Display (NASDAQ:OLED) from a hold rating to a sell rating in a report released 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.”

OLED has been the subject of a number of other reports. BidaskClub raised Universal Display from a strong sell rating to a sell rating in a report on Tuesday, July 10th. Oppenheimer boosted their price objective on Universal Display from $120.00 to $140.00 and gave the stock an outperform rating in a report on Tuesday, September 25th. Citigroup began coverage on Universal Display in a report on Tuesday, September 4th. They set a buy rating and a $153.00 price objective for the company. Cowen set a $175.00 price objective on Universal Display and gave the stock an outperform rating in a report on Thursday, October 4th. Finally, ValuEngine lowered Universal Display from a buy rating to a hold rating in a report on Tuesday, September 4th. One investment analyst has rated the stock with a sell rating, two have given a hold rating and twelve have issued a buy rating to the company’s stock. The company has an average rating of Buy and a consensus target price of $167.58.

Shares of OLED opened at $111.35 on Tuesday. The company 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 52 week low of $78.75 and a 52 week high of $209.00.

Universal Display (NASDAQ:OLED) last issued its quarterly earnings data on Thursday, August 9th. The semiconductor company reported $0.23 EPS for the quarter, topping analysts’ consensus estimates of $0.15 by $0.08. The firm had revenue of $56.15 million during the quarter, compared to analyst estimates of $49.64 million. Universal Display had a return on equity of 11.59% and a net margin of 22.76%. The company’s revenue for the quarter was down 45.2% on a year-over-year basis. During the same period in the previous year, the company posted $0.99 EPS. On average, sell-side analysts predict that Universal Display will post 1.83 earnings per share for the current fiscal year.

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

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

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Handelsbanken Fonder AB boosted its stake in shares of Universal Display by 188.3% in the 3rd quarter. Handelsbanken Fonder AB now owns 43,127 shares of the semiconductor company’s stock worth $5,085,000 after buying an additional 28,167 shares during the last quarter. Seven Eight Capital LP purchased a new position in Universal Display in the third quarter valued at approximately $4,043,000. Aperio Group LLC lifted its stake in Universal Display by 14.5% in the third quarter. Aperio Group LLC now owns 11,873 shares of the semiconductor company’s stock valued at $1,400,000 after purchasing an additional 1,502 shares during the last quarter. Rothschild Investment Corp IL purchased a new position in Universal Display in the third quarter valued at approximately $262,000. Finally, Coastline Trust Co lifted its stake in Universal Display by 33.8% in the third quarter. Coastline Trust Co now owns 5,645 shares of the semiconductor company’s stock valued at $665,000 after purchasing an additional 1,425 shares during the last quarter. Hedge funds and other institutional investors own 72.59% of the company’s stock.

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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