Ubiquiti (NYSE:UI) Stock Price Down 5.4% - What's Next?

Key Points

• Ubiquiti shares fell 5.4% to about $548.91, with trading volume 44% below the average. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans toward “Hold”: the consensus price target is $734.50, while Barclays cut its target to $489 and BWS Financial maintained a Buy rating with a $980 target.
• Ubiquiti reported stronger-than-expected quarterly results, with EPS of $4.73 versus estimates of $4.03 and revenue of $937.32 million versus $850.50 million. The company also increased its quarterly dividend from $0.80 to $1.00 per share.

Ubiquiti Inc. (NYSE:UI - Get Free Report) shares fell 5.4% during trading on Wednesday . The company traded as low as $538.97 and last traded at $548.9110. Approximately 66,145 shares traded hands during mid-day trading, a decline of 44% from the average daily volume of 117,712 shares. The stock had previously closed at $580.53.

Analysts Set New Price Targets

A number of research firms have recently weighed in on UI. Barclays dropped their target price on Ubiquiti from $672.00 to $489.00 and set an "underweight" rating for the company in a research report on Monday, August 24th. Zacks Research lowered Ubiquiti from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 14th. Weiss Ratings cut Ubiquiti from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, August 21st. Finally, BWS Financial restated a "buy" rating and set a $980.00 target price on shares of Ubiquiti in a research report on Thursday, August 27th. One equities research 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 data from MarketBeat.com, Ubiquiti currently has a consensus rating of "Hold" and an average target price of $734.50.

Ubiquiti Price Performance

The business has a 50 day moving average of $558.84 and a 200 day moving average of $683.98. The firm has a market capitalization of $30.98 billion, a price-to-earnings ratio of 32.10 and a beta of 1.31.

Ubiquiti (NYSE:UI - Get Free Report) last released its earnings results on Friday, August 21st. The company reported $4.73 earnings per share for the quarter, beating the consensus estimate of $4.03 by $0.70. The firm had revenue of $937.32 million for the quarter, compared to analyst estimates of $850.50 million. Ubiquiti had a return on equity of 85.57% and a net margin of 29.33%.During the same quarter in the prior year, the firm posted $4.41 earnings per share. As a group, equities analysts predict that Ubiquiti Inc. will post 15.53 EPS for the current year.

Ubiquiti Increases Dividend

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

Institutional Investors Weigh In On Ubiquiti

A number of hedge funds have recently modified their holdings of the business. Vision Retirement LLC acquired a new stake in shares of Ubiquiti in the first quarter valued at approximately $25,000. Quarry LP acquired a new position in Ubiquiti during the third quarter worth $34,000. Compass Financial Management LLC acquired a new position in Ubiquiti during the second quarter worth $35,000. CIBC Private Wealth Group LLC grew its position in Ubiquiti by 238.1% in the fourth quarter. CIBC Private Wealth Group LLC now owns 71 shares of the company's stock valued at $39,000 after purchasing an additional 50 shares in the last quarter. Finally, Cherry Tree Wealth Management LLC grew its position in Ubiquiti by 50.0% in the fourth quarter. Cherry Tree Wealth Management LLC now owns 75 shares of the company's stock valued at $42,000 after purchasing an additional 25 shares in the last quarter. Institutional investors and hedge funds own 4.00% of the company's stock.

About Ubiquiti

Ubiquiti Inc NYSE: UI develops and sells networking technology for businesses, internet service providers and consumers. Its products are designed to provide wireless and wired connectivity, network management, security and other communications capabilities, with an emphasis on scalable systems that can be deployed across homes, offices, campuses and service-provider networks.

The company's principal product platforms include UniFi, which offers Wi-Fi access points, switches, gateways, security cameras, access-control systems and network-management software; and UISP, which supports internet service providers with wireless broadband, fiber and network infrastructure products.

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