AXQ Capital LP Takes Position in Ubiquiti Inc. $UI

Key Points

• AXQ Capital LP acquired 2,584 Ubiquiti shares worth approximately $1.38 million during the second quarter, while institutional investors collectively own about 4% of the company.
• Ubiquiti reported stronger-than-expected quarterly results, with earnings of $4.73 per share versus the $4.03 consensus estimate and revenue of $937.32 million versus expectations of $850.50 million.
• The company raised its quarterly dividend from $0.80 to $1.00 per share, while analysts remain cautious overall: Ubiquiti has a consensus “Hold” rating and an average price target of $734.50.

AXQ Capital LP purchased a new stake in shares of Ubiquiti Inc. (NYSE:UI - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 2,584 shares of the company's stock, valued at approximately $1,380,000.

A number of other hedge funds have also bought and sold shares of UI. Wealthspire Advisors LLC lifted its stake in shares of Ubiquiti by 3.3% during the 4th quarter. Wealthspire Advisors LLC now owns 506 shares of the company's stock worth $280,000 after acquiring an additional 16 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Ubiquiti by 0.8% in the 3rd quarter. Dimensional Fund Advisors LP now owns 2,574 shares of the company's stock worth $1,700,000 after buying an additional 20 shares during the period. Valeo Financial Advisors LLC increased its stake in shares of Ubiquiti by 2.0% during the fourth quarter. Valeo Financial Advisors LLC now owns 1,046 shares of the company's stock valued at $579,000 after buying an additional 21 shares during the period. Steward Partners Investment Advisory LLC increased its stake in shares of Ubiquiti by 36.1% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 83 shares of the company's stock valued at $46,000 after buying an additional 22 shares during the period. Finally, Cherry Tree Wealth Management LLC raised its holdings in shares of Ubiquiti by 50.0% in the fourth 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 in the last quarter. Institutional investors own 4.00% of the company's stock.

Ubiquiti Price Performance

NYSE:UI opened at $578.00 on Friday. The firm has a market cap of $34.99 billion, a price-to-earnings ratio of 36.47 and a beta of 1.31. The firm's fifty day moving average price is $557.16 and its 200 day moving average price is $685.93. Ubiquiti Inc. has a 1-year low of $505.73 and a 1-year high of $1,099.99.

Ubiquiti (NYSE:UI - Get Free Report) last released its earnings results 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 net margin of 29.33% and a return on equity of 85.57%. The company had revenue of $937.32 million during the quarter, compared to analysts' expectations of $850.50 million. During the same quarter last year, the business earned $4.41 EPS. As a group, analysts expect that Ubiquiti Inc. will post 15.53 earnings per share for the current fiscal year.

Ubiquiti Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Monday, August 31st will be given a $1.00 dividend. The ex-dividend date is Monday, August 31st. This is a positive change from Ubiquiti's previous quarterly dividend of $0.80. This represents a $4.00 annualized dividend and a yield of 0.7%. Ubiquiti's dividend payout ratio (DPR) is currently 25.24%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on UI shares. Barclays dropped their price objective on shares of Ubiquiti from $672.00 to $489.00 and set an "underweight" rating on the stock in a research note on Monday, August 24th. BWS Financial restated a "buy" rating and set a $980.00 target price on shares of Ubiquiti in a report on Thursday, August 27th. Zacks Research lowered Ubiquiti from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 14th. Finally, Weiss Ratings cut Ubiquiti from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, August 21st. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Ubiquiti presently has an average rating of "Hold" and an average target price of $734.50.

Ubiquiti Profile

Ubiquiti Inc NYSE: UI is a U.S.-based technology company that designs and sells networking and wireless communication products for enterprise, service provider and consumer markets. Its product portfolio includes Wi‑Fi access points, routers and gateways, managed Ethernet switches, network management software, and IP surveillance systems. Ubiquiti's offerings are organized under several well‑known lines—most notably UniFi for managed LAN/Wi‑Fi and networked video, AmpliFi for consumer Wi‑Fi, and product families targeting service‑provider and point‑to‑point wireless broadband applications.

The company emphasizes integrated hardware and software solutions, with centralized management and cloud‑enabled control as core features of its platform approach.

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