BlackRock Inc. Invests $163.01 Million in Ubiquiti Inc. $UI

Key Points

• BlackRock acquired 305,245 Ubiquiti shares worth approximately $163.01 million in the second quarter, giving it a 0.50% stake. Other institutional investors also adjusted their positions, though institutions collectively own just 4% of the company.
• Analyst sentiment is mixed: Ubiquiti has an average “Hold” rating and a $734.50 consensus price target, with Barclays cutting its target to $489 and BWS Financial maintaining a $980 buy target.
• Ubiquiti exceeded quarterly expectations, reporting $4.73 in EPS and $937.32 million in revenue. The company also raised its quarterly dividend from $0.80 to $1.00 per share, representing a 0.7% yield.

BlackRock Inc. acquired a new position in Ubiquiti Inc. (NYSE:UI - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 305,245 shares of the company's stock, valued at approximately $163,010,000. BlackRock Inc. owned approximately 0.50% of Ubiquiti as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of UI. Corient Private Wealth LLC boosted its stake in shares of Ubiquiti by 73,940.4% during the fourth quarter. Corient Private Wealth LLC now owns 1,113,568 shares of the company's stock valued at $616,193,000 after purchasing an additional 1,112,064 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Ubiquiti during the second quarter worth about $30,086,000. Arrowstreet Capital Limited Partnership grew its holdings in shares of Ubiquiti by 47.4% during the third quarter. Arrowstreet Capital Limited Partnership now owns 163,960 shares of the company's stock valued at $108,309,000 after buying an additional 52,744 shares during the last quarter. Norges Bank acquired a new stake in shares of Ubiquiti during the fourth quarter worth about $28,527,000. Finally, Walleye Capital LLC purchased a new stake in Ubiquiti in the second quarter valued at $27,413,000. Institutional investors own 4.00% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms recently commented on UI. Zacks Research lowered shares of Ubiquiti from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 14th. Weiss Ratings cut shares of Ubiquiti from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, August 21st. BWS Financial reiterated a "buy" rating and issued a $980.00 target price on shares of Ubiquiti in a report on Thursday. Finally, Barclays cut their price objective on Ubiquiti from $672.00 to $489.00 and set an "underweight" rating for the company in a research report on Monday. One 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. Based on data from MarketBeat.com, Ubiquiti presently has an average rating of "Hold" and an average target price of $734.50.

Ubiquiti Trading Up 1.4%

Shares of NYSE:UI opened at $601.03 on Friday. Ubiquiti Inc. has a twelve month low of $505.73 and a twelve month high of $1,099.99. The company has a market capitalization of $36.38 billion, a PE ratio of 37.92 and a beta of 1.31. The firm has a 50 day simple moving average of $553.37 and a 200-day simple moving average of $690.24.

Ubiquiti (NYSE:UI - Get Free Report) last posted its earnings results on Friday, August 21st. The company reported $4.73 EPS for the quarter, topping analysts' consensus estimates of $4.03 by $0.70. Ubiquiti had a return on equity of 85.57% and a net margin of 29.33%.The business had revenue of $937.32 million for the quarter, compared to analysts' expectations of $850.50 million. During the same quarter in the previous year, the firm earned $4.41 earnings per share. As a group, equities research analysts predict that Ubiquiti Inc. will post 15.53 EPS for the current fiscal year.

Ubiquiti Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Monday, August 31st will be given a dividend of $1.00 per share. This represents a $4.00 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Monday, August 31st. This is an increase from Ubiquiti's previous quarterly dividend of $0.80. Ubiquiti's payout ratio is presently 20.19%.

About Ubiquiti

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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