Ubiquiti (NYSE:UI) Reaches New 1-Year High After Dividend Announcement

Key Points

• Ubiquiti Inc. shares reached a new 12-month high of $514.00 following the announcement of a $0.80 dividend, which is a significant increase from the previous $0.60 dividend.
• The company reported earnings per share (EPS) of $3.54 for the last quarter, exceeding analyst expectations of $2.23, and recorded a revenue of $759.15 million.
• Analysts have mixed opinions on Ubiquiti, with one giving a "buy" rating and another a "sell," leading to an average target price of $369.50 for the stock.

Shares of Ubiquiti Inc. (NYSE:UI - Get Free Report) hit a new 52-week high during trading on Saturday following a dividend announcement from the company. The stock traded as high as $514.00 and last traded at $508.60, with a volume of 699091 shares trading hands. The stock had previously closed at $390.57.

The newly announced dividend which will be paid on Monday, September 8th. Stockholders of record on Tuesday, September 2nd will be paid a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is Tuesday, September 2nd. This is an increase from Ubiquiti's previous quarterly dividend of $0.60. Ubiquiti's dividend payout ratio is 27.19%.

Wall Street Analysts Forecast Growth

UI has been the topic of a number of research analyst reports. BWS Financial raised their price target on shares of Ubiquiti from $440.00 to $600.00 and gave the company a "buy" rating in a research note on Monday. UBS Group set a $600.00 price target on shares of Ubiquiti in a research note on Monday. Finally, Barclays raised their price target on shares of 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. According to data from MarketBeat.com, Ubiquiti currently has a consensus rating of "Hold" and an average target price of $499.67.

Ubiquiti Trading Up 1.2%

The firm's 50-day moving average is $435.22 and its 200 day moving average is $376.47. The firm has a market capitalization of $32.11 billion, a price-to-earnings ratio of 45.10 and a beta of 1.35.

Ubiquiti (NYSE:UI - Get Free Report) last posted its earnings results on Friday, August 22nd. The company reported $3.54 EPS for the quarter, topping the consensus estimate of $2.23 by $1.31. Ubiquiti had a net margin of 27.66% and a return on equity of 166.22%. The business had revenue of $759.15 million for the quarter, compared to the consensus estimate of $618.80 million. During the same period last year, the company earned $1.74 EPS. Analysts predict that Ubiquiti Inc. will post 7.21 EPS for the current year.

Institutional Investors Weigh In On Ubiquiti

Hedge funds have recently added to or reduced their stakes in the business. Golden State Wealth Management LLC bought a new position in Ubiquiti during the 1st quarter worth approximately $25,000. Brooklyn Investment Group raised its holdings in Ubiquiti by 78.8% during the 1st quarter. Brooklyn Investment Group now owns 93 shares of the company's stock worth $29,000 after purchasing an additional 41 shares during the last quarter. Versant Capital Management Inc raised its holdings in Ubiquiti by 484.2% during the 1st quarter. Versant Capital Management Inc now owns 111 shares of the company's stock worth $34,000 after purchasing an additional 92 shares during the last quarter. Cullen Frost Bankers Inc. raised its holdings in Ubiquiti by 1,075.0% during the 2nd quarter. Cullen Frost Bankers Inc. now owns 94 shares of the company's stock worth $39,000 after purchasing an additional 86 shares during the last quarter. Finally, Main Street Group LTD bought a new position in Ubiquiti during the 2nd quarter worth approximately $41,000. 4.00% of the stock is currently owned by institutional investors and hedge funds.

About Ubiquiti

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.