Ubiquiti (NYSE:UI) Hits New 1-Year High - What's Next?

Key Points

• Ubiquiti's shares reached a new 1-year high, trading at $546.26 with a market cap of $32.90 billion.
• Analysts have set new price targets for Ubiquiti, with BWS Financial and UBS both increasing their targets to $600.00, while Barclays set a lower target of $299.00.
• The company announced a quarterly dividend increase to $0.80 per share, up from the previous $0.60, reflecting a positive change in shareholder returns.

Shares of Ubiquiti Inc. (NYSE:UI - Get Free Report) reached a new 52-week high on Wednesday . The company traded as high as $546.26 and last traded at $542.25, with a volume of 128492 shares. The stock had previously closed at $528.52.

Analysts Set New Price Targets

UI has been the subject of several recent analyst reports. BWS Financial increased their price target on Ubiquiti from $440.00 to $600.00 and gave the stock a "buy" rating in a research note on Monday, August 25th. UBS Group set a $600.00 price target on Ubiquiti in a research note on Monday, August 25th. Finally, Barclays increased their price target on shares of Ubiquiti from $247.00 to $299.00 and gave the company an "underweight" rating in a report on Friday, August 22nd. One research analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, Ubiquiti currently has a consensus rating of "Hold" and an average target price of $499.67.

Ubiquiti Stock Up 2.9%

The company has a market cap of $32.90 billion, a P/E ratio of 46.20 and a beta of 1.42. The firm's 50 day moving average is $443.79 and its two-hundred day moving average is $380.53.

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

Ubiquiti Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 8th. Investors of record on Tuesday, September 2nd will be given a dividend of $0.80 per share. The ex-dividend date is Tuesday, September 2nd. This is a positive change from Ubiquiti's previous quarterly dividend of $0.60. This represents a $3.20 annualized dividend and a yield of 0.6%. Ubiquiti's dividend payout ratio (DPR) is presently 20.39%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Illinois Municipal Retirement Fund bought a new position in shares of Ubiquiti in the 1st quarter worth approximately $571,000. Federated Hermes Inc. purchased a new position in shares of Ubiquiti in the first quarter worth $404,000. Entropy Technologies LP bought a new position in Ubiquiti during the 1st quarter valued at about $327,000. SW Investment Management LLC boosted its holdings in Ubiquiti by 7.4% in the first quarter. SW Investment Management LLC now owns 290,000 shares of the company's stock worth $89,941,000 after purchasing an additional 20,000 shares during the last quarter. Finally, BNP Paribas Financial Markets bought a new stake in shares of Ubiquiti during the 4th quarter valued at about $484,000. Institutional investors own 4.00% of the company's stock.

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.

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