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

Universal Display Corporation (NASDAQ:OLED) shares 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 OLED. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Universal Display in a research note on Wednesday, December 24th. Zacks Research downgraded Universal Display from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, November 19th. Citigroup lowered 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. Finally, Wall Street Zen cut Universal Display from a “hold” rating to a “sell” rating in a research report on Saturday, February 14th. Two analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, Universal Display has an average rating of “Hold” and an average price target of $162.00.

Universal Display News Roundup

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

Large investors have recently made changes to their positions in the stock. Invesco Ltd. increased its holdings in shares of Universal Display by 47.1% in the fourth quarter. Invesco Ltd. now owns 219,059 shares of the semiconductor company’s stock valued at $25,582,000 after purchasing an additional 70,141 shares during the last quarter. Mercer Global Advisors Inc. ADV grew its holdings in Universal Display by 4.7% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 5,096 shares of the semiconductor company’s stock valued at $595,000 after buying an additional 227 shares in the last quarter. Vident Advisory LLC grew its holdings in 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 in the last quarter. Mackenzie Financial Corp acquired a new stake in shares of Universal Display in the 4th quarter worth $364,000. Finally, Sunstone Asset Management L.P. acquired a new stake in shares of Universal Display in the 4th quarter worth $1,076,000. 78.19% of the stock is currently owned by hedge funds and other institutional investors.

Universal Display Trading Down 3.4%

The firm has a fifty day moving average price of $120.07 and a 200 day moving average price of $130.71. The firm has a market cap of $5.38 billion, a PE ratio of 24.13, a price-to-earnings-growth ratio of 3.37 and a beta of 1.63.

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

Universal Display Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th will be issued a dividend of $0.50 per share. The ex-dividend date is Tuesday, March 17th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.8%. This is an increase from Universal Display’s previous quarterly dividend of $0.45. Universal Display’s payout ratio is 38.79%.

Universal Display Company Profile

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.