Ubiquiti (NYSE:UI) Sets New 12-Month Low - What's Next?

Key Points

• Ubiquiti shares hit a new 52-week low, falling to $500.23 and trading well below their 50-day and 200-day moving averages.
• Analyst sentiment is mixed: BWS Financial maintained a $980 buy target, while Barclays cut its target to $489 with an underweight rating. Overall, the consensus rating is Hold, with a $734.50 price target.
• Despite the stock decline, Ubiquiti reported stronger-than-expected quarterly earnings and revenue and raised its quarterly dividend to $1.00 per share, equivalent to a 0.8% yield.

Ubiquiti Inc. (NYSE:UI - Get Free Report) shares reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $500.23 and last traded at $520.8010, with a volume of 396284 shares changing hands. The stock had previously closed at $580.53.

Analysts Set New Price Targets

A number of analysts have recently commented on the stock. BWS Financial reissued a "buy" rating and set a $980.00 target price on shares of Ubiquiti in a research note on Thursday, August 27th. Barclays lowered their price objective on Ubiquiti from $672.00 to $489.00 and set an "underweight" rating on the stock in a report on Monday, August 24th. Weiss Ratings lowered Ubiquiti from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, August 21st. Finally, Zacks Research cut Ubiquiti from a "strong-buy" rating to a "hold" rating in a report on Friday, August 14th. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $734.50.

Ubiquiti Price Performance

The stock's fifty day moving average price is $558.48 and its 200-day moving average price is $682.59. The firm has a market cap of $31.52 billion, a PE ratio of 32.86 and a beta of 1.31.

Ubiquiti (NYSE:UI - Get Free Report) last posted its quarterly earnings results on Friday, August 21st. The company reported $4.73 earnings per share for the quarter, topping the consensus estimate of $4.03 by $0.70. The firm had revenue of $937.32 million for the quarter, compared to the consensus estimate of $850.50 million. Ubiquiti had a net margin of 29.33% and a return on equity of 85.57%. During the same period last year, the firm posted $4.41 earnings per share. On average, sell-side analysts anticipate that Ubiquiti Inc. will post 15.53 earnings per share for the current fiscal year.

Ubiquiti Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Stockholders of record on Monday, August 31st were issued a dividend of $1.00 per share. The ex-dividend date was Monday, August 31st. This represents a $4.00 annualized dividend and a dividend yield of 0.8%. This is an increase from Ubiquiti's previous quarterly dividend of $0.80. Ubiquiti's payout ratio is presently 25.24%.

Institutional Investors Weigh In On Ubiquiti

Several hedge funds and other institutional investors have recently made changes to their positions in UI. Corient Private Wealth LLC boosted its stake in Ubiquiti by 73,940.4% during the fourth quarter. Corient Private Wealth LLC now owns 1,113,568 shares of the company's stock worth $616,193,000 after buying an additional 1,112,064 shares during the last quarter. BlackRock Inc. acquired a new stake in shares of Ubiquiti in the 2nd quarter worth $163,010,000. Bank of New York Mellon Corp purchased a new position in shares of Ubiquiti during the 2nd quarter worth $30,086,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of Ubiquiti by 47.4% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 163,960 shares of the company's stock worth $108,309,000 after acquiring an additional 52,744 shares during the period. Finally, Norges Bank acquired a new position in shares of Ubiquiti during the 4th quarter valued at about $28,527,000. Institutional investors and hedge funds own 4.00% of the company's stock.

Ubiquiti Company Profile

Ubiquiti Inc develops and sells networking technology for businesses, service providers and consumers. Its products include wireless access points, routers, gateways, switches, security cameras, access-control systems and network management software.

The company markets its products through several technology platforms and brands, including UniFi for enterprise and small-business networking, and airMAX, LTU and related products for wireless internet service providers. Ubiquiti also offers consumer-focused networking products under the AmpliFi brand and operates software and services designed to help customers manage their networks.

Founded in 2003 by Robert Pera, Ubiquiti serves customers internationally through distributors, online channels and other sales partners.

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