Zacks Research Increases Earnings Estimates for Ubiquiti

Key Points

• Zacks Research raised Ubiquiti’s FY2029 earnings estimate to $21.00 per share from $20.76 and maintains a “Strong Buy” rating; the current full-year consensus estimate is $16.94.
• Analyst views are mixed, ranging from “Strong Buy” to “Sell,” though MarketBeat reports a consensus “Moderate Buy” rating and an average price target of $734.50.
• Ubiquiti recently exceeded quarterly expectations, reporting $4.73 in EPS and $937.32 million in revenue, and increased its quarterly dividend to $1.00 from $0.80.

Ubiquiti Inc. (NYSE:UI - Free Report) - Stock analysts at Zacks Research raised their FY2029 earnings estimates for Ubiquiti in a report released on Monday, September 21st. Zacks Research analyst Team now forecasts that the company will earn $21.00 per share for the year, up from their prior estimate of $20.76. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Ubiquiti's current full-year earnings is $16.94 per share.

Several other equities analysts also recently weighed in on the company. BWS Financial restated a "buy" rating and issued a $980.00 target price on shares of Ubiquiti in a research report on Thursday, August 27th. Barclays dropped their price target on Ubiquiti from $672.00 to $489.00 and set an "underweight" rating for the company in a research report on Monday, August 24th. Finally, Weiss Ratings downgraded Ubiquiti from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, August 21st. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $734.50.

Ubiquiti Trading Down 1.0%

NYSE:UI opened at $583.77 on Tuesday. Ubiquiti has a 12 month low of $500.23 and a 12 month high of $1,099.99. The stock has a 50 day moving average of $564.03 and a two-hundred day moving average of $671.83. The firm has a market cap of $35.34 billion, a P/E ratio of 36.83 and a beta of 1.31.

Ubiquiti (NYSE:UI - Get Free Report) last released its quarterly earnings results on Friday, August 21st. The company reported $4.73 earnings per share for the quarter, topping the consensus estimate of $4.03 by $0.70. The firm had revenue of $937.32 million during the quarter, compared to the consensus estimate of $850.50 million. Ubiquiti had a net margin of 29.33% and a return on equity of 85.57%. During the same quarter in the prior year, the firm earned $4.41 EPS.

Ubiquiti Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Shareholders of record on Monday, August 31st were paid a $1.00 dividend. This is a positive change from Ubiquiti's previous quarterly dividend of $0.80. The ex-dividend date of this dividend was Monday, August 31st. This represents a $4.00 dividend on an annualized basis and a yield of 0.7%. Ubiquiti's dividend payout ratio is 25.24%.

Institutional Investors Weigh In On Ubiquiti

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Vision Retirement LLC purchased a new stake in Ubiquiti in the 1st quarter valued at $25,000. Compass Financial Management LLC purchased a new position in shares of Ubiquiti during the 2nd quarter worth $35,000. Cherry Tree Wealth Management LLC boosted its position in shares of Ubiquiti by 50.0% during the 4th quarter. Cherry Tree Wealth Management LLC now owns 75 shares of the company's stock valued at $42,000 after acquiring an additional 25 shares during the last quarter. Pinnacle Holdings LLC acquired a new position in shares of Ubiquiti during the 2nd quarter valued at about $49,000. Finally, Allworth Financial LP purchased a new stake in shares of Ubiquiti in the second quarter valued at about $65,000. Institutional investors and hedge funds 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, gateways, switches, security cameras, access-control systems and network management software.

The company markets its products through several technology platforms and brands, including UniFi for enterprise and small-business networking, and airMAX, LTU and related products for wireless internet service providers. Ubiquiti also offers consumer-focused networking products under the AmpliFi brand and operates software and services designed to help customers manage their networks.

Founded in 2003 by Robert Pera, Ubiquiti serves customers internationally through distributors, online channels and other sales partners.

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