Ubiquiti (NYSE:UI) Shares Gap Up on Strong Earnings

Key Points

• Ubiquiti shares surged after its quarterly results beat expectations: EPS was $5.32 versus analysts’ $4.25 estimate, while revenue of $1.03 billion exceeded the $977.45 million consensus.
• The stock opened at $573.07, up from its previous close of $514.20, and was last reported trading at about $590.
• Analyst views remain mixed, but the stock carries a MarketBeat consensus rating of “Moderate Buy” and an average price target of $734.50.

Ubiquiti Inc. (NYSE:UI - Get Free Report)'s stock price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $514.20, but opened at $573.07. Ubiquiti shares last traded at $590.3070, with a volume of 22,002 shares changing hands.

The company reported $5.32 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.25 by $1.07. The firm had revenue of $1.03 billion for the quarter, compared to the consensus estimate of $977.45 million. Ubiquiti had a net margin of 29.33% and a return on equity of 85.57%.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on UI shares. Zacks Research upgraded Ubiquiti from a "hold" rating to a "strong-buy" rating in a research report on Friday, September 18th. BWS Financial reissued a "buy" rating and issued a $980.00 target price on shares of Ubiquiti in a report on Tuesday, September 29th. Barclays reduced their price target on shares of Ubiquiti from $672.00 to $489.00 and set an "underweight" rating on the stock in a research note on Monday, August 24th. Finally, Weiss Ratings lowered shares of Ubiquiti from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, October 30th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $734.50.

Institutional Investors Weigh In On Ubiquiti

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Jacobi Capital Management LLC bought a new position in Ubiquiti in the 3rd quarter valued at approximately $68,000. Machina Capital S.A.S. lifted its holdings in shares of Ubiquiti by 84.7% during the third quarter. Machina Capital S.A.S. now owns 1,657 shares of the company's stock worth $940,000 after purchasing an additional 760 shares during the period. New York Life Investment Management LLC grew its position in shares of Ubiquiti by 29.5% in the 3rd quarter. New York Life Investment Management LLC now owns 1,191 shares of the company's stock valued at $676,000 after buying an additional 271 shares during the last quarter. Fulcrum Asset Management LLP acquired a new stake in Ubiquiti during the 3rd quarter valued at approximately $68,000. Finally, Parallel Advisors LLC increased its position in shares of Ubiquiti by 2.8% during the third quarter. Parallel Advisors LLC now owns 1,045 shares of the company's stock worth $593,000 after buying an additional 28 shares during the period. Institutional investors own 4.00% of the company's stock.

Ubiquiti Trading Up 14.6%

The company has a 50-day moving average price of $586.66 and a two-hundred day moving average price of $657.03. The stock has a market capitalization of $35.66 billion, a P/E ratio of 37.18 and a beta of 1.34.

About Ubiquiti

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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