Uniti Group (NASDAQ:UNIT) Shares Gap Down Following Weak Earnings

Key Points

• Uniti Group shares fell after disappointing quarterly results, opening at $4.99 after a prior close of $5.22. The company reported a $1.03-per-share loss, wider than the expected $0.58 loss.
• Quarterly revenue was $848.1 million, below analysts’ $855.83 million estimate.
• Analyst sentiment remains mixed but leans neutral: the consensus rating is Hold, with an average price target of $11.47.

Uniti Group Inc. (NASDAQ:UNIT - Get Free Report)'s share price gapped down prior to trading on Monday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $5.22, but opened at $4.99. Uniti Group shares last traded at $5.1250, with a volume of 946,583 shares changing hands.

The real estate investment trust reported ($1.03) earnings per share for the quarter, missing analysts' consensus estimates of ($0.58) by ($0.45). The company had revenue of $848.10 million for the quarter, compared to analyst estimates of $855.83 million. Uniti Group had a net margin of 28.68% and a negative return on equity of 133.07%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on UNIT shares. Raymond James Financial set a $16.00 price objective on Uniti Group and gave the stock a "strong-buy" rating in a research report on Tuesday, September 29th. Weiss Ratings downgraded Uniti Group from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, October 14th. JPMorgan Chase & Co. lowered their price objective on shares of Uniti Group from $12.00 to $11.00 and set a "neutral" rating on the stock in a research report on Friday, July 31st. Finally, TD Cowen cut their price target on Uniti Group from $12.00 to $11.00 and set a "buy" rating for the company in a research note on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $11.47.

Hedge Funds Weigh In On Uniti Group

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Bank of New York Mellon Corp acquired a new position in Uniti Group during the second quarter worth about $15,701,000. Principal Financial Group Inc. lifted its holdings in shares of Uniti Group by 2.0% in the first quarter. Principal Financial Group Inc. now owns 870,891 shares of the real estate investment trust's stock valued at $8,169,000 after purchasing an additional 16,971 shares in the last quarter. Pinnacle Associates Ltd. lifted its holdings in shares of Uniti Group by 4.2% in the third quarter. Pinnacle Associates Ltd. now owns 712,211 shares of the real estate investment trust's stock valued at $5,968,000 after purchasing an additional 28,411 shares in the last quarter. Mizuho Markets Americas LLC grew its position in shares of Uniti Group by 26.9% in the first quarter. Mizuho Markets Americas LLC now owns 505,246 shares of the real estate investment trust's stock valued at $4,739,000 after purchasing an additional 107,000 shares during the last quarter. Finally, First Trust Advisors LP purchased a new position in shares of Uniti Group during the 1st quarter worth approximately $4,203,000. 87.51% of the stock is owned by institutional investors and hedge funds.

Uniti Group Trading Down 1.8%

The business has a 50 day moving average of $7.65 and a 200-day moving average of $9.38. The stock has a market cap of $1.24 billion, a PE ratio of 1.92 and a beta of 1.45.

About Uniti Group

Uniti Group is a communications infrastructure company that owns, builds and operates fiber-optic networks and related broadband assets. Its network infrastructure supports broadband, wireless, enterprise and government communications, including fiber connectivity for businesses and other network operators.

Founded in 2015 as a spin-off from Windstream, Uniti initially focused on owning and leasing communications infrastructure, including fiber networks. In 2025, Uniti combined with Windstream, bringing together infrastructure operations with Windstream's Kinetic broadband and enterprise services.

The company serves customers across the United States through its fiber network and broadband operations.

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