Ubiquiti (NYSE:UI) Trading 5.1% Higher - Here's What Happened

Key Points

• Ubiquiti shares rose 5.1% to $623 on Friday, despite trading volume falling 69% below the average session volume.
• The company reported strong quarterly results, with EPS of $4.73 versus estimates of $4.03 and revenue of $937.32 million compared with the $850.50 million consensus.
• Analyst sentiment remains mixed: Ubiquiti has an overall “Hold” rating and a $734.50 average price target, while the company raised its quarterly dividend from $0.80 to $1.00 per share.

Ubiquiti Inc. (NYSE:UI - Get Free Report) shares rose 5.1% on Friday . The company traded as high as $624.18 and last traded at $623.00. 36,256 shares changed hands during trading, a decline of 69% from the average session volume of 115,538 shares. The stock had previously closed at $592.85.

Analyst Ratings Changes

UI has been the topic of a number of recent research reports. BWS Financial reaffirmed a "buy" rating and issued a $980.00 target price on shares of Ubiquiti in a research note on Thursday. Barclays cut their price target on Ubiquiti from $672.00 to $489.00 and set an "underweight" rating for the company in a report on Monday. Zacks Research lowered Ubiquiti from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 14th. Finally, Weiss Ratings cut Ubiquiti from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, August 21st. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Ubiquiti presently has an average rating of "Hold" and an average price target of $734.50.

Ubiquiti Stock Up 3.4%

The firm has a fifty day moving average price of $553.15 and a 200-day moving average price of $690.87. The firm has a market cap of $37.10 billion, a price-to-earnings ratio of 38.67 and a beta of 1.31.

Ubiquiti (NYSE:UI - Get Free Report) last announced its quarterly earnings data on Friday, August 21st. The company reported $4.73 EPS for the quarter, beating analysts' consensus estimates of $4.03 by $0.70. Ubiquiti had a return on equity of 85.57% and a net margin of 29.33%.The business had revenue of $937.32 million during the quarter, compared to the consensus estimate of $850.50 million. During the same quarter in the previous year, the business earned $4.41 earnings per share. Equities research analysts anticipate that Ubiquiti Inc. will post 15.53 earnings per share for the current fiscal year.

Ubiquiti Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Monday, August 31st will be issued a $1.00 dividend. This is a positive change from Ubiquiti's previous quarterly dividend of $0.80. The ex-dividend date is Monday, August 31st. This represents a $4.00 annualized dividend and a yield of 0.7%. Ubiquiti's dividend payout ratio (DPR) is presently 20.19%.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Militia Capital Management LLC purchased a new position in Ubiquiti during the first quarter worth approximately $1,581,000. Bank of America Corp DE grew its stake in shares of Ubiquiti by 22.3% during the 1st quarter. Bank of America Corp DE now owns 13,750 shares of the company's stock valued at $10,867,000 after buying an additional 2,508 shares during the period. Diversify Advisory Services LLC purchased a new stake in shares of Ubiquiti during the 2nd quarter valued at $1,526,000. Deutsche Bank AG acquired a new stake in shares of Ubiquiti during the 2nd quarter worth $12,832,000. Finally, Cim LLC acquired a new stake in shares of Ubiquiti during the 1st quarter worth $2,594,000. 4.00% of the stock is currently owned by hedge funds and other institutional investors.

About Ubiquiti

Ubiquiti Inc NYSE: UI is a U.S.-based technology company that designs and sells networking and wireless communication products for enterprise, service provider and consumer markets. Its product portfolio includes Wi‑Fi access points, routers and gateways, managed Ethernet switches, network management software, and IP surveillance systems. Ubiquiti's offerings are organized under several well‑known lines—most notably UniFi for managed LAN/Wi‑Fi and networked video, AmpliFi for consumer Wi‑Fi, and product families targeting service‑provider and point‑to‑point wireless broadband applications.

The company emphasizes integrated hardware and software solutions, with centralized management and cloud‑enabled control as core features of its platform approach.

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