Bright Rock Capital Management LLC Purchases 6,000 Shares of Ubiquiti Inc. $UI

Key Points

• Bright Rock Capital Management purchased 6,000 Ubiquiti shares in the third quarter, valued at approximately $3.4 million. Other institutional investors also initiated or increased positions, though institutions collectively own only 4% of the stock.
• Ubiquiti reported quarterly results above expectations, with earnings of $4.73 per share versus a $4.03 consensus estimate and revenue of $937.32 million compared with estimates of $850.50 million.
• The stock traded near $617.92, while analysts maintained a mixed but overall “Moderate Buy” consensus with an average price target of $734.50. Ubiquiti also raised its quarterly dividend to $1.00 from $0.80.

Bright Rock Capital Management LLC acquired a new position in Ubiquiti Inc. (NYSE:UI - Free Report) in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 6,000 shares of the company's stock, valued at approximately $3,405,000.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. CX Institutional bought a new position in Ubiquiti in the third quarter valued at approximately $51,000. Tidal Investments LLC bought a new stake in shares of Ubiquiti during the 2nd quarter valued at $556,000. Engineers Gate Manager LP bought a new stake in shares of Ubiquiti during the 2nd quarter valued at $2,006,000. IFP Advisors Inc lifted its stake in shares of Ubiquiti by 125.5% in the 2nd quarter. IFP Advisors Inc now owns 442 shares of the company's stock valued at $236,000 after purchasing an additional 246 shares during the period. Finally, Corient Private Wealth LP lifted its stake in shares of Ubiquiti by 11.1% in the 2nd quarter. Corient Private Wealth LP now owns 5,819 shares of the company's stock valued at $3,108,000 after purchasing an additional 583 shares during the period. 4.00% of the stock is owned by institutional investors.

Ubiquiti Stock Down 0.4%

Ubiquiti stock traded down $2.60 during mid-day trading on Monday, hitting $617.92. 27,251 shares of the company's stock were exchanged, compared to its average volume of 120,474. The company's 50 day simple moving average is $571.08 and its 200-day simple moving average is $659.79. The firm has a market capitalization of $37.40 billion, a P/E ratio of 38.98 and a beta of 1.30. Ubiquiti Inc. has a fifty-two week low of $500.23 and a fifty-two week high of $1,099.99.

Ubiquiti (NYSE:UI - Get Free Report) last released its quarterly 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 company had revenue of $937.32 million for the quarter, compared to analyst estimates of $850.50 million. During the same quarter last year, the firm posted $4.41 earnings per share. Research analysts expect that Ubiquiti Inc. will post 16.94 EPS for the current year.

Ubiquiti Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 8th. Shareholders of record on Monday, August 31st were paid a $1.00 dividend. The ex-dividend date of this dividend was Monday, August 31st. This is an increase from Ubiquiti's previous quarterly dividend of $0.80. This represents a $4.00 dividend on an annualized basis and a yield of 0.6%. Ubiquiti's payout ratio is presently 25.24%.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on UI. Barclays decreased their price objective on Ubiquiti from $672.00 to $489.00 and set an "underweight" rating for the company in a research note on Monday, August 24th. Zacks Research upgraded Ubiquiti from a "hold" rating to a "strong-buy" rating in a report on Friday, September 18th. Weiss Ratings lowered Ubiquiti from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, August 21st. Finally, BWS Financial reaffirmed a "buy" rating and issued a $980.00 price target on shares of Ubiquiti in a research note on Tuesday, September 29th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $734.50.

About Ubiquiti

Ubiquiti Inc develops and sells networking technology for businesses, service providers and consumers worldwide. The company designs products intended to deliver wireless connectivity, network management, security and other communications capabilities, with an emphasis on scalable and easy-to-deploy solutions.

Its product portfolio includes wireless access points, routers, switches, gateways, broadband wireless equipment, network management software, video surveillance systems, security and access-control products, and smart-home devices.

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