Zacks Research Issues Positive Outlook for Ubiquiti Earnings

Key Points

• Zacks Research raised Ubiquiti’s Q3 2027 EPS estimate to $4.04 from $3.92, while maintaining a “Hold” rating. It also projects FY2029 EPS of $20.76.
• Analyst sentiment remains mixed, with one Buy, two Hold, and one Sell rating; the consensus rating is “Hold” with an average price target of $734.50.
• Ubiquiti recently exceeded quarterly expectations, reporting $4.73 EPS and $937.32 million in revenue, and increased its quarterly dividend to $1.00, or $4.00 annually.

Ubiquiti Inc. (NYSE:UI - Free Report) - Analysts at Zacks Research lifted their Q3 2027 earnings per share (EPS) estimates for Ubiquiti in a research note issued to investors on Friday, September 11th. Zacks Research analyst Team now expects that the company will earn $4.04 per share for the quarter, up from their prior forecast of $3.92. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Ubiquiti's current full-year earnings is $15.53 per share. Zacks Research also issued estimates for Ubiquiti's FY2029 earnings at $20.76 EPS.

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

Ubiquiti Price Performance

Shares of UI stock opened at $564.08 on Wednesday. Ubiquiti has a one year low of $500.23 and a one year high of $1,099.99. The company has a market capitalization of $34.14 billion, a price-to-earnings ratio of 35.59 and a beta of 1.31. The company's fifty day moving average price is $560.51 and its 200-day moving average price is $677.14.

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

Ubiquiti Increases Dividend

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

Hedge Funds Weigh In On Ubiquiti

A number of hedge funds and other institutional investors have recently modified their holdings of UI. Vision Retirement LLC bought a new stake in Ubiquiti during the 1st quarter valued at $25,000. Compass Financial Management LLC purchased a new position in shares of Ubiquiti in the second quarter worth $35,000. Cherry Tree Wealth Management LLC raised its stake in Ubiquiti by 50.0% in the 4th quarter. Cherry Tree Wealth Management LLC now owns 75 shares of the company's stock worth $42,000 after acquiring an additional 25 shares during the last quarter. Pinnacle Holdings LLC acquired a new stake in shares of Ubiquiti during the second quarter worth about $49,000. Finally, Allworth Financial LP acquired a new stake in Ubiquiti during the 2nd quarter valued at approximately $65,000. 4.00% of the stock is currently owned by institutional investors.

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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