Nuveen LLC Acquires New Holdings in Ubiquiti Inc. $UI

Key Points

• Nuveen LLC acquired 36,637 shares of Ubiquiti Inc. valued at approximately $11.36 million, amounting to about 0.06% of the company's stock.
• Institutional investors have shown increased interest, with firms like TD Asset Management and Pacer Advisors dramatically growing their stakes in Ubiquiti during the first quarter.
• Ubiquiti recently raised its quarterly dividend from $0.60 to $0.80, reflecting a payout ratio of 26.43% and an annualized yield of 0.6%.

Nuveen LLC acquired a new position in Ubiquiti Inc. (NYSE:UI - Free Report) in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 36,637 shares of the company's stock, valued at approximately $11,363,000. Nuveen LLC owned about 0.06% of Ubiquiti as of its most recent SEC filing.

A number of other hedge funds have also added to or reduced their stakes in UI. TD Asset Management Inc purchased a new stake in Ubiquiti during the 1st quarter valued at $34,013,000. AQR Capital Management LLC increased its stake in shares of Ubiquiti by 100.1% in the 4th quarter. AQR Capital Management LLC now owns 99,199 shares of the company's stock worth $32,927,000 after purchasing an additional 49,616 shares in the last quarter. Pacer Advisors Inc. increased its stake in shares of Ubiquiti by 76.2% in the 1st quarter. Pacer Advisors Inc. now owns 108,934 shares of the company's stock worth $33,785,000 after purchasing an additional 47,109 shares in the last quarter. GAMMA Investing LLC increased its stake in shares of Ubiquiti by 37,116.4% in the 1st quarter. GAMMA Investing LLC now owns 40,938 shares of the company's stock worth $12,697,000 after purchasing an additional 40,828 shares in the last quarter. Finally, Abacus FCF Advisors LLC increased its stake in shares of Ubiquiti by 654.4% in the 1st quarter. Abacus FCF Advisors LLC now owns 33,116 shares of the company's stock worth $10,271,000 after purchasing an additional 28,726 shares in the last quarter. 4.00% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research firms have recently commented on UI. Barclays upped their price objective on Ubiquiti from $247.00 to $299.00 and gave the stock an "underweight" rating in a research note on Friday. BWS Financial upped their price objective on Ubiquiti from $440.00 to $600.00 and gave the stock a "buy" rating in a research note on Monday. Finally, UBS Group set a $600.00 price objective on Ubiquiti in a research note on Monday. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $499.67.

Ubiquiti Stock Performance

Shares of UI traded up $15.04 during midday trading on Tuesday, hitting $534.93. 259,909 shares of the company traded hands, compared to its average volume of 112,648. The firm has a 50 day moving average of $426.08 and a 200-day moving average of $373.18. Ubiquiti Inc. has a 52 week low of $184.00 and a 52 week high of $537.06. The stock has a market cap of $32.36 billion, a price-to-earnings ratio of 45.45 and a beta of 1.35.

Ubiquiti (NYSE:UI - Get Free Report) last released its quarterly earnings data on Friday, August 22nd. The company reported $3.54 EPS for the quarter, beating the consensus estimate of $2.23 by $1.31. Ubiquiti had a net margin of 27.66% and a return on equity of 215.74%. The business had revenue of $759.15 million during the quarter, compared to the consensus estimate of $618.80 million. During the same quarter in the prior year, the firm earned $1.74 EPS. Sell-side analysts predict that Ubiquiti Inc. will post 7.21 earnings per share for the current fiscal year.

Ubiquiti Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 8th. Stockholders of record on Tuesday, September 2nd will be given a dividend of $0.80 per share. The ex-dividend date is Tuesday, September 2nd. This represents a $3.20 annualized dividend and a dividend yield of 0.6%. This is a positive change from Ubiquiti's previous quarterly dividend of $0.60. Ubiquiti's dividend payout ratio is currently 27.19%.

Ubiquiti Profile

Ubiquiti Inc develops networking technology for service providers, enterprises, and consumers. The company develops technology platforms for high-capacity distributed Internet access, unified information technology, and consumer electronics for professional, home, and personal use. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing and related software; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, door access systems, and other WLAN products.