What Should Traders Do With Universal Display Corporation (OLED) Stock?

Universal Display Corporation (OLED) hit an intraday high Thursday at $99.47. The shares finished at $98.59, after trading as low as $92.5 earlier in the session. It rose 7.46% in recent trade and currently has a stock-market value of $4.63B. Trading activity significantly improved as the volume at ready counter increased to 3,182,731 shares versus 934,930 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,293,064 shares. The stock is now 25.19% above against its bear-market low of $78.75 on June 28, 2018. It has retreated -111.99% since it’s 52-week high of $209 reached in January. Now the market price is down -40.61% on the year and down -42.9% YTD.

OLED’s 50 day simple moving average (SMA 50) price is $104.47 and its 200-day simple moving average (SMA 200) price is $105.23. The company’s stock currently has a total float of 42.18M shares. Its weekly volatility is hovering around 4.47% and felt 4.69% volatility in price over a month. On the upside, the share price will test short term resistance at around $101.21. On a downside, the stock is likely to find some support, which begins at $94.24. The failure to get near-term support could push it to $89.88.

Separately, it has been reported that multiple insider activity took place at Universal Display Corporation (OLED). Director Greco Rosemarie B sold 3,750 shares for $9,450 in transaction occurred on 2018/11/30. After making this transaction, the Director owns a direct stake of 342,713 shares, worth $931,676, as per the last closing price. On 2018/11/06 Lacerte Lawrence, Director at OLED, dumped 10,000 shares at an average price of $97.02 per share. The selling total is valued at $32,534,700.

VP, Legal & GM, Licensing, Premutico Mauro had divested 10,044 shares for $73,902 through a trade on 2018/09/04. Following this activity, the insider holds 1,241,740 shares worth $7,285,998 as of recent close. Wall Street’s most bullish Universal Display Corporation (NASDAQ:OLED) analysts are predicting the share price to blow past $175 per share during the next 12 months. The current median share price forecast by them is $129, suggesting that the stock could increase 30.84% in that time frame. The average price target of $133.2 calls for a nearly 35.1% increase in the stock price.

When looking at valuations, Universal Display Corporation (OLED) has a pricey P/E of 55.39x as compared to industry average of 14.53x. Moreover, it trades for 38.3 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 6.84x price/book and 15.8x price/sales. Compared to others, Universal Display Corporation is in a different league with regards to profitability, having net margins of 15.3%. To put some perspective around this, the industry’s average net margin is 15.52%. OLED’s ROE is 6.8%, which is also considerably better than the industry’s ROE of -6.21%. It’s also very liquid in the near term, with a current ratio of 5.4. The stock has a debt/capital of 0.

Shares of Universal Display Corporation (OLED) have dropped -29.2% since the company’s last earnings report. Over the past 12 fiscal quarters, Universal Display Corporation (NASDAQ:OLED) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 5 quarters (41%), whereas at 0 occasion EPS met analyst expectations. OLED last reported earnings on November 01, 2018 when it released Sep-18 results that receded expectations. The company raked in $0.48 per share, -98.25% change on the same period last year. That was worse than consensus for $0.66. Revenue for the recent quarter stood at $77.55 million, up 26% on last year and below the $91.41 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $67.7 million to $108 million, which should be compared with $139.67 million generated last year. EPS is seen in a range of $0.09 to $0.89, against the $1.33 reported a year ago.