Universal Display (NASDAQ:OLED) Shares Down 4.8% on Analyst Downgrade

Universal Display Corporation (NASDAQ:OLED)’s stock price fell 4.8% during mid-day 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. 285,036 shares traded hands during trading, a decline of 62% from the average session volume of 749,860 shares. The stock had previously closed at $117.12.

A number of other research analysts have also weighed in on the company. Wall Street Zen lowered Universal Display from a “hold” rating to a “sell” rating in a report on Saturday, February 14th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Universal Display in a research report on Wednesday, December 24th. Zacks Research lowered shares of Universal Display from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, November 19th. Finally, Citigroup decreased their price objective on shares of Universal Display from $150.00 to $130.00 and set a “neutral” rating for the company in a research note on Tuesday, January 27th. Two research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $162.00.

Trending Headlines about Universal Display

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

• Positive Sentiment: Q4 EPS beat — OLED reported $1.39 EPS vs. the $1.28 consensus, showing better profitability than expected; that supports valuation and can lift the stock. Earnings beat article
• Positive Sentiment: Dividend increase — the board raised the quarterly cash dividend to $0.50 (11.1% hike), payable Mar 31 with record date Mar 17; this raises yield to ~1.7% and signals management confidence and shareholder returns. Dividend press release
• Neutral Sentiment: Revenue roughly flat to estimates — Q4 revenue was $172.93M vs. the $173.35M consensus, showing modest y/y growth but not a material beat; mixed for sentiment. Earnings release / transcript
• Neutral Sentiment: Earnings call and coverage — the Q4 2025 earnings call transcript and multiple analyst writeups provide more detail for investors to parse guidance, margin drivers, and demand trends. Earnings call transcript
• Negative Sentiment: FY2026 revenue guidance below Street — management gave a revenue range (~$650M–$700M) that sits under the consensus (~$718.5M), which can pressure the shares as it implies slower near‑term growth. Guidance details
• Negative Sentiment: Analyst target trimmed — Needham cut its target from $150 to $145 but kept a buy rating, signaling modestly reduced upside expectations. Analyst note
• Negative Sentiment: Block sale by a shareholder — Peregrine sold ~50.6k shares (~$7.3M), which may add selling pressure though not necessarily reflective of company fundamentals. Insider / fund sale

Institutional Investors Weigh In On Universal Display

Hedge funds and other institutional investors have recently made changes to their positions in the company. Norges Bank acquired a new position in shares of Universal Display in the 2nd quarter valued at $124,480,000. Vanguard Group Inc. increased its holdings in Universal Display by 10.0% in the third quarter. Vanguard Group Inc. now owns 5,069,107 shares of the semiconductor company’s stock valued at $728,076,000 after buying an additional 460,792 shares in the last quarter. JPMorgan Chase & Co. raised its position in shares of Universal Display by 86.4% in the fourth quarter. JPMorgan Chase & Co. now owns 880,678 shares of the semiconductor company’s stock worth $102,846,000 after acquiring an additional 408,315 shares during the period. Analog Century Management LP purchased a new stake in shares of Universal Display during the 4th quarter worth about $46,914,000. Finally, Primecap Management Co. CA grew its position in shares of Universal Display by 20.7% during the 2nd quarter. Primecap Management Co. CA now owns 2,215,308 shares of the semiconductor company’s stock valued at $342,176,000 after acquiring an additional 379,586 shares during the period. Institutional investors and hedge funds own 78.19% of the company’s stock.

Universal Display Trading Down 3.4%

The stock has a 50-day moving average price of $120.07 and a 200 day moving average price of $130.71. The stock has a market capitalization of $5.38 billion, a price-to-earnings ratio of 24.13, a PEG ratio of 3.37 and a beta of 1.63.

Universal Display (NASDAQ:OLED) last issued its quarterly earnings results on Thursday, February 19th. The semiconductor company reported $1.39 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.28 by $0.11. Universal Display had a return on equity of 14.10% and a net margin of 34.65%.The company had revenue of $172.93 million for the quarter, compared to the consensus estimate of $173.35 million. Universal Display’s revenue for the quarter was up 6.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.22 earnings per share. Equities research analysts anticipate that Universal Display Corporation will post 4.71 earnings per share for the current year.

Universal Display Increases Dividend

The business also recently declared 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. The ex-dividend date of this dividend is Tuesday, March 17th. This represents a $2.00 dividend on an annualized basis and a yield of 1.8%. This is an increase from Universal Display’s previous quarterly dividend of $0.45. Universal Display’s dividend payout ratio is 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.