Uniti Group (NASDAQ:UNIT) Stock Price Breaks Below 50 Day Moving Average - Should You Sell?

Key Points

• Uniti Group shares fell below their 50-day moving average, reaching $8.50 before closing at $8.57, compared with a 50-day average of $9.84.
• Analysts remain broadly cautious: seven rate the stock “Hold,” while the average price target is $11.47. Targets range from $11 to $16, with ratings spanning Hold to Strong Buy.
• The company missed quarterly EPS expectations, reporting a loss of $0.68 per share versus the expected $0.45 loss, although revenue of $909.7 million exceeded estimates. Institutional investors and hedge funds own 87.51% of the stock.

Uniti Group Inc. (NASDAQ:UNIT - Get Free Report) shares passed below its fifty day moving average during trading on Tuesday. The stock has a fifty day moving average of $9.84 and traded as low as $8.50. Uniti Group shares last traded at $8.57, with a volume of 2,368,084 shares changing hands.

Wall Street Analysts Forecast Growth

UNIT has been the topic of several research analyst reports. JPMorgan Chase & Co. lowered their price target on shares of Uniti Group from $12.00 to $11.00 and set a "neutral" rating on the stock in a report on Friday, July 31st. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Uniti Group in a research report on Wednesday, August 19th. Barclays increased their target price on Uniti Group from $11.00 to $13.00 and gave the stock an "equal weight" rating in a research note on Wednesday, July 1st. TD Cowen dropped their price target on Uniti Group from $12.00 to $11.00 and set a "buy" rating for the company in a report on Friday, July 31st. Finally, Raymond James Financial set a $16.00 price target on Uniti Group and gave the company a "strong-buy" rating in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $11.47.

Uniti Group Stock Performance

The stock has a market cap of $2.08 billion, a P/E ratio of 3.16 and a beta of 1.39. The stock's fifty day simple moving average is $9.84 and its 200-day simple moving average is $10.43.

Uniti Group (NASDAQ:UNIT - Get Free Report) last announced its earnings results on Thursday, July 30th. The real estate investment trust reported ($0.68) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.45) by ($0.23). Uniti Group had a negative return on equity of 133.07% and a net margin of 28.68%.The business had revenue of $909.70 million for the quarter, compared to analyst estimates of $884.82 million. As a group, equities research analysts forecast that Uniti Group Inc. will post -2.09 earnings per share for the current year.

Hedge Funds Weigh In On Uniti Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in UNIT. Bank of New York Mellon Corp acquired a new stake in shares of Uniti Group during the 2nd quarter worth $15,701,000. Principal Financial Group Inc. raised its stake in 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. Mizuho Markets Americas LLC raised its stake in 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 in the last quarter. First Trust Advisors LP bought a new stake in Uniti Group during the first quarter worth about $4,203,000. Finally, Hsbc Holdings PLC bought a new stake in Uniti Group during the first quarter worth about $1,781,000. 87.51% of the stock is owned by institutional investors and hedge funds.

About Uniti Group

Uniti Group Inc is a communications infrastructure company that owns and manages real estate and network assets used to support telecommunications services. The company's portfolio has historically included fiber-optic networks, copper networks, towers, and other infrastructure leased to wireless carriers, broadband providers, utilities, government entities, and other communications companies.

Uniti's primary business is providing access to its infrastructure through long-term leases, dark-fiber arrangements, indefeasible rights of use, and other commercial agreements.

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