Universal Display

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A stock in the semiconductor complex that insiders are snapping up here is Universal Display ( PANL), which is engaged in the research, development and commercialization of organic light emitting diode technologies and materials. Insiders are buying this stock into some notable weakness, since shares are off by 18% in the last three months.

Universal Display has a market cap of $1.24 billion and an enterprise value of $1.02 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 128.27 and a forward price-to-earnings of 32.54. Its estimated growth rate for this year is 100%, and for next year it's pegged at 272.7%. This is a cash-rich company, since the total cash position on its balance sheet is $238.78 million and its total debt is zero.

A beneficial owner just bought 52,260 shares, or $1.37 million worth of stock, at $25.88 to $26.86 per share.

From a technical perspective, PANL is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong for the last two months and change, with shares moving higher from its low of $21.55 to its recent high of $29.40 a share. During that uptrend, shares of PANL have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of PANL within range of triggering a near-term breakout trade.

>>4 Breakout Buys for January -- and One Sell

If you're in the bull camp on PANL, then I would look for long-biased trades as long as it's trending above some near-term support at $24, and then once it manages to break out above some near-term overhead resistance at $29.40 a share with high volume. Look for a sustained move or close above $29.40 a share with volume that hits near or above its three-month average action of 1,027,620 shares. If that breakout triggers soon, then PANL will set up to re-test or possibly take out its next major overhead resistance levels at $34.54 to $35.60 a share.

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