Universal Display Corporation (NASDAQ:OLED) Overbought but Is That a Sell Indicator?

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Universal Display Corporation (NASDAQ:OLED) has reached an overbought level with an RSI(14) at 80.20.

The Relative Strength Index (RSI) is a very common technical indicator used to evaluate strengthening and weakening momentum in price action. RSI levels above 70 are considered overbought with RSI’s under 30 indicating oversold. Overbought is a condition that occurs when prices are considered too high and may be susceptible to a decline.

Volatility

Universal Display Corporation has a beta of 1.03 meaning it is more volatile than the market overall which by definition has a beta of 1. Stocks with beta’s lower than 1 are considered to be less risky and those with a higher beta are more risky than the market.

The stock’s Average True Range (ATR) is 4.09. The ATR is a short term indicator of volatility. It doesn’t indicate direction, just proclivity for motion.

It is currently trading at $143.25 which is significantly higher than the 50 day moving average which is $120.61 and which is quite a bit higher than the 200 day moving average of $107.89. The 50 day moving average went up by +18.77% and the 200 day average was up $35.36.

Short Interest

Short traders are more bullish on shares of Universal Display Corporation of late if you put credence in the fall in short interest. The stock had a fall in short interest of -2.76% as of the latest report on August 31, 2017. Short interest decreased from 3,514,154 to 3,417,008 over that period. Days to cover increased 1.0 to 5.0 and the percentage of shorted shares is 0.07% as of August 31.

Recent Analyst Ratings

On August 30 analysts at Deutsche Bank started covering the stock by announcing an initial rating of “Buy”.

The company announced a dividend for shareholders that will be paid on Saturday the 30th of September 2017. The dividend payment will be $0.030 per share for the quarter or $0.12 annualized. This dividend represents a yield of $0.09 which is the dividend as a percentage of the current share price. The ex-dividend date will be Thursday the 14th of September 2017.

The most current P/E ratio is 83.04 and market cap is 6.74B. As of the latest earnings report the EPS was $1.73 and is expected to be $2.14 for the current year with 47,031,000 shares outstanding. Next quarter’s EPS is expected be $0.80 and the next full year EPS is anticipated to be $2.85.

Company Information

Universal Display Corporation, launched on April 24, 1985, is involved in the research, development and commercialization of organic light emitting diode (OLED), technologies and materials for use in display and solid-state lighting applications. The Company 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 also provides technical assistance and support to these manufacturers. The Company has produced and sold phosphorescent emitter materials that produce red, yellow, green and light-blue light, which are combined in various ways for the display and lighting markets. It has also developed host materials for the emissive layer..