Ubiquiti (NYSE:UI) Reaches New 52-Week High - Here's Why

Key Points

• Ubiquiti Inc. shares hit a new 52-week high of $691.52, closing at $678.26, driven by increased investor interest and trading volume of 7,334 shares.
• Analysts have raised Ubiquiti's price targets, with BWS Financial and UBS both setting targets of $600.00, while the consensus rating remains a "Hold" with a target of $499.67.
• Ubiquiti recently announced a quarterly dividend increase to $0.80 per share, reflecting a positive financial outlook and a dividend yield of 0.5%.

Shares of Ubiquiti Inc. (NYSE:UI - Get Free Report) reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $691.52 and last traded at $678.26, with a volume of 7334 shares. The stock had previously closed at $671.82.

Analysts Set New Price Targets

Several brokerages have recently commented on UI. BWS Financial raised their price objective on shares of Ubiquiti from $440.00 to $600.00 and gave the company a "buy" rating in a research report on Monday, August 25th. UBS Group set a $600.00 price target on shares of Ubiquiti in a research note on Monday, August 25th. Barclays lifted their price objective on shares of Ubiquiti from $247.00 to $299.00 and gave the company an "underweight" rating in a report on Friday, August 22nd. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of Ubiquiti in a report on Saturday, September 27th. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $499.67.

Ubiquiti Trading Up 0.7%

The business's fifty day moving average price is $545.30 and its 200 day moving average price is $433.27. The firm has a market capitalization of $40.94 billion, a price-to-earnings ratio of 57.51 and a beta of 1.44.

Ubiquiti (NYSE:UI - Get Free Report) last released its quarterly earnings data on Friday, August 22nd. The company reported $3.54 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 previous year, the firm earned $1.74 EPS. As a group, sell-side analysts forecast that Ubiquiti Inc. will post 7.21 earnings per share for the current fiscal year.

Ubiquiti Increases Dividend

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

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of UI. AQR Capital Management LLC increased its position in Ubiquiti by 133.9% in the 1st quarter. AQR Capital Management LLC now owns 232,015 shares of the company's stock worth $70,521,000 after buying an additional 132,816 shares during the period. TD Asset Management Inc bought a new stake in Ubiquiti in the first quarter valued at $34,013,000. Long Walk Management LP acquired a new position in Ubiquiti in the second quarter worth $28,480,000. Epoch Investment Partners Inc. acquired a new position in shares of Ubiquiti during the first quarter valued at $18,897,000. Finally, Pacer Advisors Inc. lifted its stake in Ubiquiti by 76.2% in the first quarter. Pacer Advisors Inc. now owns 108,934 shares of the company's stock valued at $33,785,000 after buying an additional 47,109 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.

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