Downgrade Keeps Pressure on OLED Stock

OLED shares have breached their 100-day moving average

by Josh Selway

Published on Sep 12, 2019 at 10:15 AM

Universal Display Corporation (NASDAQ:OLED) touched an all-time high of $230.32 just last week, but the shares have already pulled back significantly since this peak. OLED stock suffered two huge daily slides in the sessions after the milestone, and today it's off another 7.7% at $178.26. This price action is a result of Susquehanna's note, which cut the equity's rating to "negative" from "neutral," and its price target to $130 from $210.

Looking closer, the brokerage firm believes cost increases could slow the penetration of OLED screens, specially in the smartphone market. In response, OLED has fallen below the 100-day moving average for the first time in seven months, a trendline that served as strong support during that last two pullbacks.

Most analysts are already bearish on Universal Display, with just two of the nine in coverage recommending to buy the shares. Options traders, on the other hand, have been bullish across the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The 10-day call/put volume ratio across these exchanges is 3.10, and ranks in the 88th annual percentile -- showing a stronger-than-normal demand for long calls.

While all of this has been happening, short sellers have been hitting the exits, as part of a multi-month exodus from these traders. In the last two reporting periods alone, short interest declined by 22.2%.

 


A Schaeffer's exclusive

TOP STOCK PICKS 2020

Access your FREE insider report before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Trend Minting Millionaires -- But Who Is Really Paying?
Porter Stansberry is making a concerning prediction.
Options Bulls, Analysts Unfazed by AMD's Mixed Earnings
AMD was overdue for bull notes anyway
Amazon Stock Lands Double Dose of Pre-Earnings Bull Notes
Amazon stock recently pulled back to its 50-day trendline
The Trend Minting Millionaires -- But Who Is Really Paying?
Porter Stansberry is making a concerning prediction.