Ubiquiti Inc. $UI Stock: Inspire Investing LLC Cuts Stake

Key Points

• Inspire Investing cut its Ubiquiti stake by 38% in the third quarter, selling 4,077 shares and retaining 6,663 shares valued at approximately $3.78 million. Other institutional investors, including Bank of America and Canada Pension Plan Investment Board, initiated positions.
• Analyst sentiment remains mixed but leans positive: Ubiquiti has a “Moderate Buy” consensus rating and an average price target of $734.50, despite Barclays maintaining an “underweight” rating and lowering its target to $489.
• Ubiquiti recently exceeded quarterly earnings and revenue expectations, reporting $4.73 in EPS on $937.32 million in revenue. The company also raised its quarterly dividend to $1.00 per share, implying a $4.00 annual payout and a 0.7% yield.

Inspire Investing LLC lowered its holdings in shares of Ubiquiti Inc. (NYSE:UI - Free Report) by 38.0% in the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 6,663 shares of the company's stock after selling 4,077 shares during the quarter. Inspire Investing LLC's holdings in Ubiquiti were worth $3,781,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Bank of America Corp DE bought a new position in shares of Ubiquiti in the 2nd quarter worth approximately $17,647,000. Diversify Advisory Services LLC purchased a new position in shares of Ubiquiti in the second quarter worth approximately $1,526,000. Canada Pension Plan Investment Board bought a new stake in Ubiquiti during the second quarter valued at approximately $19,140,000. Militia Capital Management LLC bought a new stake in Ubiquiti during the first quarter valued at approximately $1,581,000. Finally, Deutsche Bank AG bought a new stake in Ubiquiti during the second quarter valued at approximately $12,832,000. Hedge funds and other institutional investors own 4.00% of the company's stock.

Analysts Set New Price Targets

A number of analysts have commented on the stock. BWS Financial reaffirmed a "buy" rating and set a $980.00 target price on shares of Ubiquiti in a report on Tuesday, September 29th. Weiss Ratings upgraded shares of Ubiquiti from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Zacks Research upgraded shares of Ubiquiti from a "hold" rating to a "strong-buy" rating in a research note on Friday, September 18th. Finally, Barclays cut their price objective 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. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Ubiquiti currently has an average rating of "Moderate Buy" and an average target price of $734.50.

Ubiquiti Stock Performance

NYSE:UI opened at $587.97 on Friday. The stock has a 50-day simple moving average of $587.98 and a two-hundred day simple moving average of $641.42. The firm has a market capitalization of $35.59 billion, a PE ratio of 37.10 and a beta of 1.30. Ubiquiti Inc. has a 52-week low of $500.23 and a 52-week high of $1,099.99.

Ubiquiti (NYSE:UI - Get Free Report) last posted its quarterly earnings data 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 return on equity of 85.57% and a net margin of 29.33%. The firm had revenue of $937.32 million for the quarter, compared to the consensus estimate of $850.50 million. During the same quarter last year, the company earned $4.41 earnings per share. Equities analysts forecast that Ubiquiti Inc. will post 16.94 earnings per share for the current fiscal year.

Ubiquiti Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Monday, August 31st were paid a dividend of $1.00 per share. This is a boost from Ubiquiti's previous quarterly dividend of $0.80. The ex-dividend date was Monday, August 31st. This represents a $4.00 dividend on an annualized basis and a dividend yield of 0.7%. Ubiquiti's dividend payout ratio is presently 25.24%.

Ubiquiti Profile

Ubiquiti Inc develops and sells networking technology for businesses, service providers and consumers worldwide. The company's products are designed to provide wireless connectivity, routing, switching, network management and related communications capabilities.

Ubiquiti's product portfolio includes the UniFi platform for enterprise and small-business networks, with products such as wireless access points, switches, gateways, security cameras and access-control systems. It also offers solutions for wireless internet service providers and other network operators through its UISP and related product lines, as well as consumer-oriented connectivity products under brands including AmpliFi.

Founded in 2005 by Robert Pera, Ubiquiti distributes its products internationally through distributors, online channels and other sales partners.

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