Universal Display authorizes $100 million stock buyback

Published 01/05/2025, 21:14
Universal Display authorizes $100 million stock buyback

EWING, N.J. - Universal Display Corporation (NASDAQ:OLED), a prominent player in the development of organic light emitting diode (OLED) technologies, has announced the initiation of a new stock repurchase program. The company’s Board of Directors has authorized the repurchase of up to $100 million of its common stock. According to InvestingPro data, the company maintains a strong financial position with minimal debt and a current ratio of 7.18x, indicating ample liquidity to support this initiative.

The repurchase program is effective immediately and provides the company with the flexibility to buy back shares using various methods, such as through a 10b5-1 trading plan, open market purchases, privately negotiated transactions, or in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. This program does not have a set expiration date and does not commit the company to purchase any particular number of shares. Management retains the discretion to alter, pause, or terminate the program at any time.

Funding for the repurchase will come from Universal Display’s existing cash reserves, investments, or future cash flow, according to the company’s statement.

In conjunction with the share repurchase announcement, Universal Display also declared a second quarter cash dividend of $0.45 per share, payable on June 30, 2025, to shareholders on record as of June 16, 2025. This marks the company’s continued commitment to shareholder returns, with InvestingPro data showing an impressive 8-year consecutive dividend growth streak and a recent dividend growth rate of 28.57%. The payment of any future dividends will be at the discretion of the Board.

Universal Display Corporation, founded in 1994, is recognized for its research, development, and commercialization of OLED technologies for display and lighting applications. With a market capitalization of $6.85 billion and trailing twelve-month revenue of $647.68 million, the company has established itself as a market leader. Holding over 6,500 patents worldwide, the company licenses its technologies, including its high-efficiency UniversalPHOLED® phosphorescent OLED technology, and provides high-quality materials essential for the manufacture of high-performance OLEDs.

This announcement contains forward-looking statements regarding the company’s future financial performance and market growth, which involve risks and uncertainties. The company cautions that these statements are based on current expectations and are subject to change. Notably, the stock has experienced a significant decline of approximately 30% over the past six months, though analysts maintain a positive outlook with price targets ranging from $152 to $213. For comprehensive analysis and additional insights, investors can access the detailed Pro Research Report available on InvestingPro, which covers this and over 1,400 other US equities.

The information presented in this article is based on a press release statement from Universal Display Corporation.

In other recent news, Universal Display Corporation reported its fourth-quarter 2024 financial results, revealing a revenue of $162.29 million, which exceeded analyst expectations of $151.17 million. However, the company’s earnings per share (EPS) of $0.96 fell short of the anticipated $1.08. Despite the EPS miss, Universal Display’s annual revenue for 2024 reached a record $648 million, marking a 12% increase from the previous year. The company also announced advancements in its blue phosphorescent OLED technology, which is expected to significantly enhance energy efficiency.

In related developments, Goldman Sachs adjusted its price target for Universal Display, lowering it to $172 from $196, while maintaining a Buy rating. The firm anticipates solid near-term results but expressed caution about the latter half of the year due to potential market uncertainties. Needham also revised its price target for the company, reducing it to $170 from $215, but retained a Buy rating, highlighting the potential long-term benefits of the company’s blue emitter technology.

Furthermore, Oppenheimer maintained its Outperform rating on Universal Display with a price target of $200, following LG Display’s successful verification of blue phosphorescent OLED panel production in collaboration with Universal Display. This development is seen as a significant milestone, potentially impacting the company’s growth prospects in the coming years. These recent developments reflect Universal Display’s ongoing efforts to innovate in the OLED sector while navigating the challenges of a dynamic market landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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