Shares of Universal Display (NASDAQ:OLED) were down 10.7% as of 3 p.m. EDT Tuesday, likely driven by a combination of a broader sell-off in tech stocks and news of a notable insider stock sale.
On the former, while the broader markets are down modestly today, with the S&P 500 off around 0.4% as of this writing, the Technology Select Sector SPDR Fund (NYSEMKT:XLK), for one, is down around 1.1%. And high-flying names like Universal Display -- which was up more than 130% year to date as of Monday's close -- tend to get hit harder than most in such situations.
It certainly didn't help that, according to a Securities and Exchange Commission filing dated Monday, Universal Display CEO Steve Abramson sold 31,182 shares of the company last Thursday at a price of just over $222 per share -- or a total value of more than $6.9 million.
Still, it's worth noting that the sale happened as part of a previously entered nondiscretionary trading plan. And even after the sale, Abramson also still directly owns a whopping 146,493 shares of Universal Display worth over $27.4 million as of this writing.
Long-term investors shouldn't lose any sleep over today's decline, and certainly shouldn't take the above insider sale as an indication that management lacks conviction in the future. Put simply, with shares up so much in 2019, it's hardly surprising to see Universal Display stock giving back some of those gains along with the ebbs and flows of the broader tech sector.