SW Investment Management LLC Decreases Stake in Ubiquiti Inc. $UI

Key Points

• SW Investment Management LLC reduced its stake in Ubiquiti Inc. by 13.8% in Q2, holding 250,000 shares after selling 40,000 shares during the quarter.
• Ubiquiti reported a EPS of $3.54 for the last quarter, significantly exceeding the consensus estimate of $2.23, with total quarterly revenue of $759.15 million.
• The company increased its quarterly dividend to $0.80 per share, raising the annualized dividend yield to 0.5%.

SW Investment Management LLC lessened its stake in Ubiquiti Inc. (NYSE:UI - Free Report) by 13.8% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 250,000 shares of the company's stock after selling 40,000 shares during the quarter. Ubiquiti comprises approximately 24.6% of SW Investment Management LLC's investment portfolio, making the stock its biggest holding. SW Investment Management LLC owned approximately 0.41% of Ubiquiti worth $102,912,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. Golden State Wealth Management LLC bought a new position in Ubiquiti in the 1st quarter valued at $25,000. Brooklyn Investment Group lifted its holdings in Ubiquiti by 78.8% in the first quarter. Brooklyn Investment Group now owns 93 shares of the company's stock valued at $29,000 after buying an additional 41 shares during the period. Main Street Group LTD bought a new position in Ubiquiti in the second quarter valued at approximately $41,000. Iron Horse Wealth Management LLC acquired a new stake in Ubiquiti during the 2nd quarter worth $54,000. Finally, GAMMA Investing LLC grew its stake in shares of Ubiquiti by 20.5% during the second quarter. GAMMA Investing LLC now owns 159 shares of the company's stock worth $65,000 after purchasing an additional 27 shares during the period. 4.00% of the stock is owned by institutional investors.

Ubiquiti Price Performance

Shares of UI stock opened at $655.47 on Monday. The company has a fifty day moving average price of $560.12 and a two-hundred day moving average price of $441.56. Ubiquiti Inc. has a one year low of $233.80 and a one year high of $705.78. The stock has a market cap of $39.65 billion, a P/E ratio of 55.69 and a beta of 1.44.

Ubiquiti (NYSE:UI - Get Free Report) last issued its earnings results on Friday, August 22nd. The company reported $3.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.23 by $1.31. Ubiquiti had a net margin of 27.66% and a return on equity of 166.22%. The business had revenue of $759.15 million during the quarter, compared to the consensus estimate of $618.80 million. During the same period last year, the business posted $1.74 EPS. As a group, equities research analysts anticipate 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 was paid on Monday, September 8th. Shareholders of record on Tuesday, September 2nd were issued a $0.80 dividend. The ex-dividend date of this dividend was Tuesday, September 2nd. This represents a $3.20 annualized dividend and a yield of 0.5%. This is an increase from Ubiquiti's previous quarterly dividend of $0.60. Ubiquiti's payout ratio is currently 27.19%.

Analyst Upgrades and Downgrades

UI has been the topic of several recent analyst reports. Weiss Ratings reissued a "hold (c+)" rating on shares of Ubiquiti in a research note on Wednesday, October 8th. BWS Financial increased their price objective on shares of Ubiquiti from $440.00 to $600.00 and gave the stock a "buy" rating in a research report on Monday, August 25th. Barclays boosted their price target on Ubiquiti from $247.00 to $299.00 and gave the company an "underweight" rating in a report on Friday, August 22nd. Finally, UBS Group set a $600.00 target price on shares of Ubiquiti in a report on Monday, August 25th. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $499.67.

About Ubiquiti

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.

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