Man Group plc Purchases New Position in Ubiquiti Inc. $UI

Key Points

• Man Group acquired 5,915 Ubiquiti shares during the second quarter, valued at approximately $3.16 million. Several other institutional investors also initiated positions, though institutions collectively own only about 4% of the company.
• Ubiquiti exceeded quarterly expectations, reporting $4.73 EPS versus the $4.03 consensus and revenue of $937.32 million versus $850.50 million expected.
• The company raised its quarterly dividend from $0.80 to $1.00 per share, or $4.00 annually, producing a 0.7% yield. Analyst sentiment remains mixed, with an overall “Hold” rating and an average price target of $734.50.

Man Group plc acquired a new position in shares of Ubiquiti Inc. (NYSE:UI - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 5,915 shares of the company's stock, valued at approximately $3,159,000.

Several other institutional investors and hedge funds also recently made changes to their positions in UI. Hsbc Holdings PLC acquired a new stake in shares of Ubiquiti during the second quarter worth $389,000. Canada Pension Plan Investment Board acquired a new stake in shares of Ubiquiti in the second quarter valued at approximately $19,140,000. Legal & General Group Plc acquired a new stake in shares of Ubiquiti in the second quarter valued at approximately $8,867,000. The Manufacturers Life Insurance Company bought a new stake in shares of Ubiquiti in the second quarter valued at approximately $525,000. Finally, Pinnacle Holdings LLC bought a new stake in shares of Ubiquiti in the second quarter valued at approximately $49,000. Institutional investors and hedge funds own 4.00% of the company's stock.

Ubiquiti Price Performance

UI stock opened at $589.75 on Tuesday. The stock has a market cap of $35.70 billion, a price-to-earnings ratio of 37.21 and a beta of 1.31. The company has a 50 day simple moving average of $553.57 and a 200 day simple moving average of $689.18. 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 issued its earnings results on Friday, August 21st. The company reported $4.73 earnings per share for the quarter, beating analysts' consensus estimates of $4.03 by $0.70. The firm had revenue of $937.32 million for the quarter, compared to analyst estimates of $850.50 million. Ubiquiti had a net margin of 29.33% and a return on equity of 85.57%. During the same quarter last year, the business posted $4.41 earnings per share. On average, equities research analysts anticipate that Ubiquiti Inc. will post 15.53 EPS for the current fiscal year.

Ubiquiti Increases Dividend

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

Analysts Set New Price Targets

Several brokerages have weighed in on UI. Zacks Research cut Ubiquiti from a "strong-buy" rating to a "hold" rating in a report on Friday, August 14th. BWS Financial reissued a "buy" rating and issued a $980.00 target price on shares of Ubiquiti in a report on Thursday, August 27th. Barclays dropped their target price on shares of Ubiquiti from $672.00 to $489.00 and set an "underweight" rating for the company in a research report on Monday, August 24th. Finally, Weiss Ratings downgraded shares of Ubiquiti from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, August 21st. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company 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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