The Case for and Against Universal Display Corporation (OLED)

Universal Display Corporation (OLED) is an interesting player in the Technology space, with a focus on Semiconductor Equipment & Materials. The stock has been active on the tape, currently trading at $159.15, up from yesterday’s close by 8.93%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Universal Display Corporation (OLED) currently trades with a market capitalization of $7.30 Billion. That value represents a market adjusting for revenues that have been growing by 104.15 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $85.11 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.85 on a per share basis this quarter. Perhaps, that suggests something about why 3.78% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, Universal Display Corporation recorded a 52-week high of $209.00. It is now trading 49.85% off that level. The stock is trading $173.27 its 50-day moving average by 14.12%. The stock carved out a 52-week low down at $64.30.

In recent action, Universal Display Corporation (OLED) has made a move of -21.77% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 13.35, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 7.41% with $41.70 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of OLED.

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