2Q Results Spark OLED Stock Rally

Universal Display Corporation (NASDAQ:OLED) has been batted around on the charts this year, losing more than half its value since its all-time high of $209 from January as of last night's close at $101.15. The shares are taking back some of those losses this morning, however, adding 13.1% to trade at $114.16, thanks to the company's well-received second-quarter earnings report.

Universal Display easily topped sales estimates for the period, and upbeat comments from CFO Sidney Rosenblatt are helping as well. Specifically, Rosenblatt noted how sales improved from a perceived "bottom" in the first quarter, and added that 2019 should be a "pivotal year" for the OLED industry, calling out the introduction of the world's first foldable OLED product as a potential tailwind.

Even with the positive results and subsequent stock rally, there's been no analyst updates to hit the Street yet. That could be because most were already bullish on OLED stock, despite its volatile year on the charts. In fact, seven of the eight brokerages in coverage recommend buying the shares, and the average 12-month price target is $147.90.

Short sellers who've flocked to the stock this year may be reconsidering their stance in the meantime. Looking back at data from February, there was just over three million shares sold short, and that number has since more than doubled to 6.8 million. However, in the last two reporting periods short interest declined 15.2%, and an extended exodus of these bears could keep the wind at the security's back.