Ubiquiti (NYSE:UI) Stock Rating Cut to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Ubiquiti from “Strong Buy” to “Hold.” The overall analyst consensus is also “Hold,” with an average price target of $758.50.
• Analyst views remain mixed: Barclays raised its target to $537 but kept an “Underweight” rating, while BWS Financial maintained a “Buy” rating and a $980 target.
• Ubiquiti beat quarterly earnings and revenue expectations, reporting EPS of $5.32 versus $4.25 expected and revenue of $1.03 billion versus $977.45 million expected.

Ubiquiti (NYSE:UI - Get Free Report) was downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Tuesday, Zacks reports.

Several other equities analysts have also issued reports on the company. Barclays lifted their target price on Ubiquiti from $489.00 to $537.00 and gave the company an "underweight" rating in a research note on Monday. Weiss Ratings downgraded shares of Ubiquiti from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, October 30th. Finally, BWS Financial reissued a "buy" rating and set a $980.00 price target on shares of Ubiquiti in a research report on Monday. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $758.50.

Ubiquiti Trading Down 0.9%

Shares of NYSE UI opened at $679.55 on Tuesday. The stock has a market capitalization of $41.10 billion, a PE ratio of 38.75 and a beta of 1.34. The stock's fifty day simple moving average is $592.20 and its two-hundred day simple moving average is $659.16. Ubiquiti has a 12-month low of $500.23 and a 12-month high of $1,099.99.

Ubiquiti (NYSE:UI - Get Free Report) last announced its quarterly earnings results on Friday, November 6th. The company reported $5.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.25 by $1.07. The business had revenue of $1.03 billion for the quarter, compared to the consensus estimate of $977.45 million. Ubiquiti had a return on equity of 80.29% and a net margin of 30.08%. On average, equities analysts predict that Ubiquiti will post 16.94 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Ubiquiti

A number of institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in shares of Ubiquiti during the 2nd quarter worth approximately $163,010,000. Bank of New York Mellon Corp purchased a new position in shares of Ubiquiti in the second quarter valued at approximately $30,086,000. Walleye Capital LLC purchased a new position in Ubiquiti in the 2nd quarter valued at approximately $27,413,000. Canada Pension Plan Investment Board purchased a new position in shares of Ubiquiti in the 2nd quarter valued at about $19,140,000. Finally, Bank of America Corp DE acquired a new position in shares of Ubiquiti during the second quarter worth about $17,647,000. Hedge funds and other institutional investors own 4.00% of the company's stock.

Ubiquiti Company Profile

Ubiquiti Inc. develops and sells networking technology for businesses, service providers and consumers. Its products include wireless access points, routers, switches and broadband wireless equipment, along with network management software and security devices such as cameras and access control systems. The company markets products under brands including UniFi, airMAX, EdgeMAX and AmpliFi. Its UniFi platform brings together networking, video surveillance and access control products with centralized management tools.

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