Universal Display (NASDAQ:OLED) Reaches New 52-Week Low After Analyst Downgrade

Shares of Universal Display Corporation (NASDAQ:OLED) hit a new 52-week low during trading on Saturday after Needham & Company LLC lowered their price target on the stock from $150.00 to $145.00. Needham & Company LLC currently has a buy rating on the stock. Universal Display traded as low as $103.35 and last traded at $104.07, with a volume of 1981192 shares traded. The stock had previously closed at $117.12.

Several other brokerages have also commented on OLED. Citigroup decreased their price target on Universal Display from $150.00 to $130.00 and set a “neutral” rating on the stock in a research note on Tuesday, January 27th. Zacks Research downgraded shares of Universal Display from a “strong-buy” rating to a “hold” rating in a report on Wednesday, November 19th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Universal Display in a research note on Wednesday, December 24th. Finally, Wall Street Zen downgraded Universal Display from a “hold” rating to a “sell” rating in a report on Saturday, February 14th. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $151.67.

Universal Display News Summary

Here are the key news stories impacting Universal Display this week:

• Positive Sentiment: Q4 EPS beat and revenue growth — OLED reported $1.39 EPS vs. $1.28 expected and revenue of ~$173M, up 6.5% year-over-year, driven by strong material sales and royalties. OLED’s Q4 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Dividend increase — UDC raised its quarterly cash dividend to $0.50/share (11.1% increase), which supports yield and shareholder return expectations. Universal Display Corporation Increases Quarterly Cash Dividend to $0.50 per Share
• Neutral Sentiment: Earnings call details available — Management provided color in the Q4/2025 earnings call and transcript; useful for judging cadence of material sales, royalty trajectory and margin outlook. Universal Display Corporation (OLED) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst target adjusted — Needham cut its price target from $150 to $145 but kept a “buy” rating, signaling continued confidence despite near-term headwinds. Analyst price target update
• Negative Sentiment: 2026 revenue guide below consensus — UDC guided revenue of $650M–$700M for FY2026, under the consensus (~$718.5M), which likely drove today’s selloff despite the beat. Investors are focused on the slower near-term demand outlook implied by the guide. Universal Display Corporation Announces Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Large holder exit — Peregrine sold ~50,560 shares (~$7.3M), reducing an institutional position; while not decisive alone, it can add selling pressure in thin windows. Peregrine Closes 50,000-Share OLED Position Worth USD7.3 Million

Hedge Funds Weigh In On Universal Display

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in OLED. Invesco Ltd. boosted its stake in Universal Display by 47.1% during the 4th quarter. Invesco Ltd. now owns 219,059 shares of the semiconductor company’s stock worth $25,582,000 after acquiring an additional 70,141 shares during the last quarter. Mercer Global Advisors Inc. ADV raised its holdings in Universal Display by 4.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 5,096 shares of the semiconductor company’s stock worth $595,000 after purchasing an additional 227 shares during the period. Vident Advisory LLC grew its holdings in shares of Universal Display by 16.0% in the 4th quarter. Vident Advisory LLC now owns 3,519 shares of the semiconductor company’s stock valued at $411,000 after buying an additional 486 shares during the period. Mackenzie Financial Corp bought a new stake in shares of Universal Display in the 4th quarter valued at $364,000. Finally, Sunstone Asset Management L.P. bought a new stake in shares of Universal Display in the 4th quarter valued at $1,076,000. Institutional investors own 78.19% of the company’s stock.

Universal Display Trading Down 11.1%

The firm has a market cap of $4.95 billion, a price-to-earnings ratio of 20.53, a P/E/G ratio of 3.29 and a beta of 1.63. The company has a 50 day moving average of $119.79 and a 200 day moving average of $130.44.

Universal Display (NASDAQ:OLED) last posted its earnings results on Thursday, February 19th. The semiconductor company reported $1.39 earnings per share for the quarter, topping the consensus estimate of $1.28 by $0.11. Universal Display had a return on equity of 14.19% and a net margin of 37.21%.The firm had revenue of $172.93 million for the quarter, compared to analyst estimates of $173.35 million. During the same period in the previous year, the company posted $1.22 earnings per share. The company’s revenue for the quarter was up 6.5% on a year-over-year basis. Equities analysts forecast that Universal Display Corporation will post 4.71 EPS for the current fiscal year.

Universal Display Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Tuesday, March 17th. This is a boost from Universal Display’s previous quarterly dividend of $0.45. Universal Display’s dividend payout ratio (DPR) is currently 38.79%.

About Universal Display

Universal Display Corporation (NASDAQ: OLED) is a technology company specializing in organic light-emitting diode (OLED) solutions. The company develops and commercializes materials, technologies and software used in the creation of OLED displays and lighting. Its offerings include proprietary phosphorescent OLED (PHOLED) materials, display driver integrated circuits and process technologies that enable higher efficiency, longer lifetimes and improved color performance for a range of display and lighting applications.

Universal Display’s core business is licensing its extensive OLED patent portfolio to display manufacturers and providing them with the key organic materials needed for device fabrication.