Northern Trust Corp Raises Stake in Ubiquiti Inc. $UI

Key Points

• Northern Trust Corp increased its holdings in Ubiquiti Inc. by 14.5% during Q1 2023, acquiring 3,696 additional shares worth approximately $9 million at the end of the reporting period.
• Ubiquiti reported quarterly earnings of $3.54 per share, significantly exceeding analysts' expectations, and announced a dividend increase from $0.60 to $0.80 per share.
• Analysts have mixed ratings on Ubiquiti, with price targets ranging from $247 to $600, reflecting a consensus rating of "Hold" with an average target of $499.67.

Northern Trust Corp increased its stake in Ubiquiti Inc. (NYSE:UI - Free Report) by 14.5% in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 29,172 shares of the company's stock after acquiring an additional 3,696 shares during the quarter. Northern Trust Corp's holdings in Ubiquiti were worth $9,047,000 at the end of the most recent reporting period.

Several other hedge funds also recently modified their holdings of UI. Illinois Municipal Retirement Fund acquired a new stake in Ubiquiti in the 1st quarter valued at $571,000. Federated Hermes Inc. acquired a new stake in Ubiquiti in the 1st quarter valued at $404,000. Entropy Technologies LP acquired a new stake in Ubiquiti in the 1st quarter valued at $327,000. SW Investment Management LLC grew its position in Ubiquiti by 7.4% in the 1st quarter. SW Investment Management LLC now owns 290,000 shares of the company's stock valued at $89,941,000 after purchasing an additional 20,000 shares during the period. Finally, BNP Paribas Financial Markets acquired a new stake in Ubiquiti in the 4th quarter valued at $484,000. Institutional investors own 4.00% of the company's stock.

Ubiquiti Stock Performance

UI traded up $6.26 during mid-day trading on Monday, reaching $583.31. 155,832 shares of the stock were exchanged, compared to its average volume of 211,555. The stock has a market capitalization of $35.28 billion, a PE ratio of 49.56 and a beta of 1.42. The company has a 50 day moving average price of $457.02 and a two-hundred day moving average price of $387.30. Ubiquiti Inc. has a 1 year low of $189.76 and a 1 year high of $588.68.

Ubiquiti (NYSE:UI - Get Free Report) last posted its quarterly earnings data on Friday, August 22nd. The company reported $3.54 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.23 by $1.31. The firm had revenue of $759.15 million for the quarter, compared to the consensus estimate of $618.80 million. Ubiquiti had a net margin of 27.66% and a return on equity of 166.22%. During the same period in the previous year, the firm earned $1.74 EPS. Sell-side analysts expect that Ubiquiti Inc. will post 7.21 EPS for the current fiscal year.

Ubiquiti Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 8th. Investors of record on Tuesday, September 2nd will be issued a $0.80 dividend. This is an increase from Ubiquiti's previous quarterly dividend of $0.60. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $3.20 dividend on an annualized basis and a dividend yield of 0.5%. Ubiquiti's payout ratio is presently 27.19%.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. BWS Financial lifted their price target on shares of Ubiquiti from $440.00 to $600.00 and gave the company a "buy" rating in a research report on Monday, August 25th. Barclays lifted their price target on shares of Ubiquiti from $247.00 to $299.00 and gave the company an "underweight" rating in a research report on Friday, August 22nd. Finally, UBS Group set a $600.00 price target on shares of Ubiquiti in a research report on Monday, August 25th. One investment analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Ubiquiti presently has a consensus rating of "Hold" and an average target price of $499.67.

Ubiquiti Company Profile

Ubiquiti Inc develops networking technology for service providers, enterprises, and consumers. The company develops technology platforms for high-capacity distributed Internet access, unified information technology, and consumer electronics for professional, home, and personal use. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing and related software; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, door access systems, and other WLAN products.