Canada Pension Plan Investment Board Buys New Stake in Ubiquiti Inc. $UI

Key Points

• Canada Pension Plan Investment Board bought 35,840 Ubiquiti shares worth approximately $19.14 million, representing about 0.06% of the company. Institutional investors and hedge funds collectively own 4% of Ubiquiti.
• Analyst sentiment has weakened, with Barclays cutting its price target to $489 and several firms downgrading the stock to “Hold.” Ubiquiti has a consensus “Hold” rating and an average target price of $734.50.
• Ubiquiti exceeded quarterly expectations with $4.73 in earnings per share and $937.32 million in revenue, while raising its quarterly dividend from $0.80 to $1.00 per share.

Canada Pension Plan Investment Board bought a new stake in shares of Ubiquiti Inc. (NYSE:UI - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund bought 35,840 shares of the company's stock, valued at approximately $19,140,000. Canada Pension Plan Investment Board owned approximately 0.06% of Ubiquiti at the end of the most recent reporting period.

Other institutional investors also recently added to or reduced their stakes in the company. Wealthspire Advisors LLC grew its stake in shares of Ubiquiti by 3.3% in the fourth quarter. Wealthspire Advisors LLC now owns 506 shares of the company's stock worth $280,000 after purchasing an additional 16 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Ubiquiti by 0.8% during the third quarter. Dimensional Fund Advisors LP now owns 2,574 shares of the company's stock valued at $1,700,000 after purchasing an additional 20 shares in the last quarter. Valeo Financial Advisors LLC raised 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 purchasing an additional 21 shares in the last quarter. Steward Partners Investment Advisory LLC lifted its holdings in Ubiquiti by 36.1% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 83 shares of the company's stock worth $46,000 after purchasing an additional 22 shares during the period. Finally, Cherry Tree Wealth Management LLC lifted its holdings in Ubiquiti by 50.0% in the fourth quarter. Cherry Tree Wealth Management LLC now owns 75 shares of the company's stock worth $42,000 after purchasing an additional 25 shares during the period. Institutional investors and hedge funds own 4.00% of the company's stock.

Analysts Set New Price Targets

Several research firms have commented on UI. Barclays lowered their target price on shares of Ubiquiti from $672.00 to $489.00 and set an "underweight" rating on the stock in a research note on Monday. Weiss Ratings lowered 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 price objective on shares of Ubiquiti in a report on Thursday. Finally, Zacks Research lowered shares of Ubiquiti from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 14th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Ubiquiti presently has a consensus rating of "Hold" and a consensus target price of $734.50.

Ubiquiti Stock Up 1.4%

Shares of UI stock opened at $601.03 on Friday. The stock has a 50-day simple moving average of $553.37 and a 200 day simple moving average of $690.24. Ubiquiti Inc. has a fifty-two week low of $505.73 and a fifty-two week high of $1,099.99. The stock has a market capitalization of $36.38 billion, a P/E ratio of 37.92 and a beta of 1.31.

Ubiquiti (NYSE:UI - Get Free Report) last issued its quarterly 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 firm had revenue of $937.32 million for the quarter, compared to analysts' expectations of $850.50 million. During the same period in the previous year, the business earned $4.41 earnings per share. On average, sell-side analysts anticipate that Ubiquiti Inc. will post 15.53 earnings per share for the current year.

Ubiquiti Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Investors of record on Monday, August 31st will be issued a dividend of $1.00 per share. 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 dividend on an annualized basis and a yield of 0.7%. Ubiquiti's payout ratio is 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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