Universal Display (NASDAQ:OLED) Stock Price Down 4.8% After Analyst Downgrade

Universal Display Corporation (NASDAQ:OLED) was down 4.8% during trading on Friday 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 $110.02 and last traded at $111.4750. Approximately 285,036 shares changed hands during mid-day trading, a decline of 62% from the average daily volume of 749,860 shares. The stock had previously closed at $117.12.

OLED has been the topic of several other research reports. Citigroup decreased their target price on Universal Display from $150.00 to $130.00 and set a “neutral” rating on the stock in a research report on Tuesday, January 27th. Zacks Research downgraded Universal Display from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, November 19th. Weiss Ratings restated a “hold (c-)” rating on shares of Universal Display in a report on Wednesday, December 24th. Finally, Wall Street Zen cut shares of Universal Display from a “hold” rating to a “sell” rating in a research note on Saturday, February 14th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $151.67.

Key Universal Display News

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 institutional investors have recently bought and sold shares of OLED. Invesco Ltd. grew its stake in shares of Universal Display by 47.1% in the 4th quarter. Invesco Ltd. now owns 219,059 shares of the semiconductor company’s stock valued at $25,582,000 after buying an additional 70,141 shares during the period. Mercer Global Advisors Inc. ADV lifted 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 valued at $595,000 after acquiring an additional 227 shares during the last quarter. Vident Advisory LLC lifted its holdings in Universal Display by 16.0% in the fourth quarter. Vident Advisory LLC now owns 3,519 shares of the semiconductor company’s stock valued at $411,000 after acquiring an additional 486 shares during the last quarter. Mackenzie Financial Corp purchased a new position in Universal Display in the fourth quarter worth approximately $364,000. Finally, Sunstone Asset Management L.P. acquired a new stake in Universal Display during the fourth quarter worth $1,076,000. 78.19% of the stock is owned by hedge funds and other institutional investors.

Universal Display Price Performance

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

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

Universal Display Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th will be issued a $0.50 dividend. The ex-dividend date is Tuesday, March 17th. This represents a $2.00 annualized dividend and a dividend yield of 1.9%. This is an increase 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.