You really know that Apple (NASDAQ:AAPL) is controlling the world when a company rumor can send other stocks soaring. This is exactly what is happening today for shares of Universal Display Corporation (NASDAQ:OLED).
Even though the rumor, which appears to be legitimate, is not a direct deal between Universal Display Corporation (NASDAQ:OLED) and Apple (NASDAQ:AAPL), it certainly will cause some significant ripples for the company if true. The original rumor is for a deal between Apple, Samsung Electronics Co Ltd. and LG Display Co Ltd., but what many investors are unaware of is how much revenue Universal Display Corporation (NASDAQ:OLED) sees as direct result of sales by these two companies. Thanks to royalties paid for patented technology, Samsung contributed 54% and LG Display 39% to the company’s 2014 revenues. This is why shares of OLED are trading up so much today.
A move by Apple to change over to OLED displays means huge royalties being paid to Universal Display Corporation (NASDAQ:OLED). The stock is up 9.17% or $4.8 following the news, hitting $57.16 per share. About 1.05M shares traded hands or up 26.95% from the average. OLED has declined 3.25% since May 27, 2015 and is currently downtrending. It has underperformed the S&P500 by 1.13%.
From a total of 3 analysts covering Universal Display (NASDAQ:OLED) stock, 0 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 0 of the ratings are positive. The highest target price is $52 while the lowest target price is $31. The mean of all analyst targets is $41 which is -28.27% below today’s ($57.16) stock price. Universal Display was the topic of 5 analyst reports since August 11, 2015 according to the firm StockzIntelligence Inc. Canaccord Genuity maintained shares on December 9 with a “Hold” rating. Summit Research initiated OLED stock in a recent report from September 28 with a “Hold” rating.
The institutional sentiment decreased to 0.87 in Q2 2015. It’s down 0.05, from 0.92 in 2015Q2. The ratio turned negative, as 43 funds sold all their Universal Display Corporation shares they owned while 47 reduced their positions. 23 funds bought stakes while 55 increased their total positions. Institutions now own 26.66 million shares which is 4.71% less than the previous share count of 27.98 million in 2015Q2.
Domini Social Investments Llc holds 6.14% of its total portfolio in Universal Display Corporation, equating to 11,096 shares. Princeton Capital Management Inc owns 95,975 shares representing 1.97% of their total US portfolio. Moreover, Muhlenkamp & Co Inc has 1.86% of their total portfolio invested in the company, equating to 186,760 shares. The Connecticut-based Discovery Capital Management Llc Ct has a total of 1.58% of their portfolio invested in the stock. Avenir Corp, a -based fund reported 534,682 shares owned.
Universal Display Corporation is engaged in the research, development and commercialization of organic light emitting diode , technologies and materials for use in displays for wearables, smartphones, tablets and televisions, as well as solid-state lighting applications. The company has a market cap of $2.52 billion. The Company’s flat panel displays are used for a variety of portable consumer electronics products, such as cell phones, portable media devices, digital cameras, tablets and laptop computers. It has 270.07 P/E ratio. The Firm also supplies its OLED materials to manufacturers of OLED displays and lighting products for evaluation and for use in product development and for pre-commercial activities and it provides technical assistance and support to these manufacturers.