Ubiquiti (NYSE:UI) Shares Climb 12.7% on Strong Earnings

Key Points

• Ubiquiti shares jumped 12.7% after quarterly earnings beat expectations: EPS was $5.32 versus $4.25 forecast, while revenue reached $1.03 billion versus $977.45 million expected.
• The company declared a quarterly dividend of $1 per share, equivalent to $4 annually and a 0.6% yield.
• Analyst views were mixed, but MarketBeat listed an overall “Moderate Buy” rating and a consensus price target of $758.50.

Ubiquiti Inc. (NYSE:UI - Get Free Report)'s share price shot up 12.7% during mid-day trading on Monday following a better than expected earnings announcement. The company traded as high as $666.25 and last traded at $668.3150. Approximately 95,594 shares traded hands during mid-day trading, a decline of 18% from the average session volume of 117,215 shares. The stock had previously closed at $592.84.

The company reported $5.32 EPS for the quarter, topping analysts' consensus estimates of $4.25 by $1.07. The company had revenue of $1.03 billion for the quarter, compared to analysts' expectations of $977.45 million. Ubiquiti had a return on equity of 87.95% and a net margin of 30.08%.

Ubiquiti Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, November 23rd. Shareholders of record on Monday, November 16th will be paid a dividend of $1.00 per share. This represents a $4.00 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Monday, November 16th. Ubiquiti's payout ratio is presently 22.59%.

Analyst Ratings Changes

UI has been the subject of a number of research reports. Weiss Ratings downgraded Ubiquiti from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, October 30th. Barclays lifted their target price on shares of Ubiquiti from $489.00 to $537.00 and gave the company an "underweight" rating in a report on Monday. Zacks Research upgraded shares of Ubiquiti from a "hold" rating to a "strong-buy" rating in a research note on Friday, September 18th. Finally, BWS Financial reaffirmed a "buy" rating and issued a $980.00 price objective on shares of Ubiquiti in a report on Tuesday, September 29th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $758.50.

Institutional Trading of Ubiquiti

Hedge funds and other institutional investors have recently modified their holdings of the stock. Russell Investments Group Ltd. increased its holdings in Ubiquiti by 4.7% in the 3rd quarter. Russell Investments Group Ltd. now owns 1,604 shares of the company's stock valued at $910,000 after purchasing an additional 72 shares during the last quarter. Jacobi Capital Management LLC acquired a new position in shares of Ubiquiti during the 3rd quarter worth about $68,000. Machina Capital S.A.S. lifted its position in shares of Ubiquiti by 84.7% during the 3rd quarter. Machina Capital S.A.S. now owns 1,657 shares of the company's stock worth $940,000 after buying an additional 760 shares during the last quarter. New York Life Investment Management LLC boosted its stake in Ubiquiti by 29.5% in the third quarter. New York Life Investment Management LLC now owns 1,191 shares of the company's stock valued at $676,000 after acquiring an additional 271 shares in the last quarter. Finally, Fulcrum Asset Management LLP purchased a new position in Ubiquiti during the 3rd quarter worth $68,000. 4.00% of the stock is owned by institutional investors and hedge funds.

Ubiquiti Trading Up 13.0%

The stock has a market capitalization of $40.55 billion, a PE ratio of 37.79 and a beta of 1.34. The company has a 50 day simple moving average of $586.72 and a 200 day simple moving average of $657.17.

About Ubiquiti

Ubiquiti Inc develops and sells networking technology for businesses, service providers and consumers. Its products include wireless access points, routers, switches and broadband wireless equipment, along with network management software and security devices such as cameras and access control systems.

The company markets products under brands including UniFi, airMAX, EdgeMAX and AmpliFi. Its UniFi platform brings together networking, video surveillance and access control products with centralized management tools.

Founded in 2003 by Robert Pera, Ubiquiti serves customers globally through distributors, online channels and retail partners.

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