Ubiquiti (NYSE:UI) Downgraded by Zacks Research to Hold

Key Points

• Zacks Research downgraded Ubiquiti (NYSE:UI) from "strong-buy" to "hold"; analyst sentiment is mixed overall, with an average rating of "Hold" and an average price target of $702.33.
• Ubiquiti reported a strong quarter, beating EPS estimates ($3.88 vs. $3.08) and delivering revenue of $814.9M (up 35.8% year-over-year); the stock trades near $1,006 with a market cap around $60.9B and a PE of about 68.6.
• Notable institutional moves included Corient Private Wealth adding roughly 1.11 million shares in Q4, even as hedge funds collectively own only about 4% of the company.

Ubiquiti (NYSE:UI - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Tuesday,Zacks.com reports.

Several other brokerages also recently commented on UI. Barclays increased their price objective on shares of Ubiquiti from $455.00 to $527.00 and gave the company an "underweight" rating in a research report on Friday, February 6th. BWS Financial increased their price objective on shares of Ubiquiti from $720.00 to $980.00 and gave the company a "buy" rating in a research report on Monday, April 13th. Weiss Ratings raised shares of Ubiquiti from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 23rd. Finally, Wall Street Zen raised shares of Ubiquiti from a "hold" rating to a "buy" rating in a research report on Sunday. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Ubiquiti currently has an average rating of "Hold" and an average price target of $702.33.

Ubiquiti Price Performance

NYSE:UI opened at $1,006.54 on Tuesday. The firm's 50-day moving average price is $820.60 and its 200-day moving average price is $684.92. The company has a market capitalization of $60.92 billion, a PE ratio of 68.57 and a beta of 1.32. Ubiquiti has a 1-year low of $300.40 and a 1-year high of $1,099.99.

Ubiquiti (NYSE:UI - Get Free Report) last released its earnings results on Friday, February 6th. The company reported $3.88 earnings per share for the quarter, topping analysts' consensus estimates of $3.08 by $0.80. Ubiquiti had a net margin of 29.90% and a return on equity of 113.21%. The firm had revenue of $814.87 million for the quarter, compared to the consensus estimate of $716.95 million. During the same period in the prior year, the firm earned $2.28 EPS. The company's revenue was up 35.8% compared to the same quarter last year. Equities analysts anticipate that Ubiquiti will post 14.04 EPS for the current fiscal year.

Institutional Trading of Ubiquiti

A number of institutional investors have recently made changes to their positions in the stock. Corient Private Wealth LLC boosted its holdings in shares of Ubiquiti by 73,940.4% during the 4th quarter. Corient Private Wealth LLC now owns 1,113,568 shares of the company's stock valued at $616,193,000 after acquiring an additional 1,112,064 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Ubiquiti by 11.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 183,464 shares of the company's stock valued at $101,520,000 after acquiring an additional 19,504 shares during the last quarter. Wealth Enhancement Advisory Services LLC boosted its holdings in shares of Ubiquiti by 244.3% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 155,916 shares of the company's stock valued at $88,815,000 after acquiring an additional 110,632 shares during the last quarter. Pacer Advisors Inc. boosted its holdings in shares of Ubiquiti by 40.3% during the 3rd quarter. Pacer Advisors Inc. now owns 105,858 shares of the company's stock valued at $69,928,000 after acquiring an additional 30,420 shares during the last quarter. Finally, Morgan Stanley boosted its holdings in shares of Ubiquiti by 7.7% during the 4th quarter. Morgan Stanley now owns 102,022 shares of the company's stock valued at $56,454,000 after acquiring an additional 7,338 shares during the last quarter. Hedge funds and other institutional investors own 4.00% of the company's stock.

Ubiquiti Company Profile

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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