Ubiquiti (NYSE:UI) Reaches New 12-Month High - Time to Buy?

Key Points

• Ubiquiti's stock reached a new 52-week high at $588.68, closing at $583.31, signaling strong trading activity with a volume of 155,832 shares.
• Several analysts have raised their price targets for Ubiquiti, with UBS Group and BWS Financial both setting a target of $600, indicating bullish sentiment.
• The company reported a significant earnings surprise, posting $3.54 EPS versus an estimate of $2.23, and announced a dividend increase to $0.80 per share from $0.60.

Ubiquiti Inc. (NYSE:UI - Get Free Report)'s share price reached a new 52-week high on Tuesday . The company traded as high as $588.68 and last traded at $583.31, with a volume of 155832 shares trading hands. The stock had previously closed at $577.05.

Analyst Upgrades and Downgrades

UI has been the topic of a number of analyst reports. UBS Group set a $600.00 price target on Ubiquiti in a research note on Monday, August 25th. BWS Financial raised their price target on Ubiquiti from $440.00 to $600.00 and gave the company a "buy" rating in a research note on Monday, August 25th. Finally, Barclays raised their price target on Ubiquiti from $247.00 to $299.00 and gave the company an "underweight" rating in a research note on Friday, August 22nd. One investment analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $499.67.

Ubiquiti Stock Performance

The stock has a market cap of $36.58 billion, a price-to-earnings ratio of 51.38 and a beta of 1.42. The company has a 50-day moving average of $468.55 and a 200-day moving average of $392.32.

Ubiquiti (NYSE:UI - Get Free Report) last issued its quarterly earnings results on Friday, August 22nd. The company reported $3.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.23 by $1.31. The firm had revenue of $759.15 million for the quarter, compared to analysts' expectations of $618.80 million. Ubiquiti had a return on equity of 166.22% and a net margin of 27.66%.During the same quarter in the previous year, the firm posted $1.74 EPS. As a group, equities research analysts forecast that Ubiquiti Inc. will post 7.21 EPS for the current year.

Ubiquiti Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, September 8th. Investors of record on Tuesday, September 2nd were paid a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Tuesday, September 2nd. This is an increase from Ubiquiti's previous quarterly dividend of $0.60. Ubiquiti's dividend payout ratio is currently 27.19%.

Institutional Investors Weigh In On Ubiquiti

Several hedge funds have recently modified their holdings of the company. Valeo Financial Advisors LLC lifted its stake in shares of Ubiquiti by 2.5% during the 2nd quarter. Valeo Financial Advisors LLC now owns 1,025 shares of the company's stock worth $422,000 after purchasing an additional 25 shares during the period. Advisory Services Network LLC boosted its holdings in Ubiquiti by 13.2% in the second quarter. Advisory Services Network LLC now owns 1,429 shares of the company's stock valued at $622,000 after acquiring an additional 167 shares during the last quarter. Capital Impact Advisors LLC grew its position in Ubiquiti by 1.6% during the second quarter. Capital Impact Advisors LLC now owns 23,056 shares of the company's stock valued at $9,491,000 after acquiring an additional 365 shares during the period. Caxton Associates LLP grew its position in Ubiquiti by 98.4% during the second quarter. Caxton Associates LLP now owns 11,800 shares of the company's stock valued at $4,857,000 after acquiring an additional 5,853 shares during the period. Finally, Corient Private Wealth LLC grew its position in Ubiquiti by 422.5% during the second quarter. Corient Private Wealth LLC now owns 3,511 shares of the company's stock valued at $1,445,000 after acquiring an additional 2,839 shares during the period. 4.00% of the stock is owned by institutional investors and hedge funds.

Ubiquiti Company Profile

Ubiquiti Inc develops networking technology for service providers, enterprises, and consumers. The company develops technology platforms for high-capacity distributed Internet access, unified information technology, and consumer electronics for professional, home, and personal use. Its service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing and related software; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, door access systems, and other WLAN products.