Ubiquiti (NYSE:UI) Sets New 12-Month High - Still a Buy?

Key Points

• Ubiquiti's stock price reached a new 52-week high at $727.02, marking a significant increase from its previous close of $686.85, with a trading volume of 78,949 shares.
• The company reported a strong earnings performance, with $3.54 EPS for the quarter, surpassing analysts' expectations of $2.23, alongside revenue of $759.15 million against a forecast of $618.80 million.
• Ubiquiti increased its quarterly dividend to $0.80 per share from $0.60, reflecting a positive change in its shareholder return strategy.

Shares of Ubiquiti Inc. (NYSE:UI - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $727.02 and last traded at $723.78, with a volume of 78949 shares trading hands. The stock had previously closed at $686.85.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the company. Barclays boosted their price target on Ubiquiti from $247.00 to $299.00 and gave the stock an "underweight" rating in a research report on Friday, August 22nd. UBS Group set a $600.00 target price on Ubiquiti in a report on Monday, August 25th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Ubiquiti in a research report on Wednesday, October 8th. Finally, BWS Financial upped their price objective on Ubiquiti from $600.00 to $720.00 and gave the company a "buy" rating in a report on Monday. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $539.67.

Ubiquiti Stock Performance

The firm's 50 day simple moving average is $565.12 and its 200-day simple moving average is $444.21. The company has a market capitalization of $46.20 billion, a price-to-earnings ratio of 64.89 and a beta of 1.44.

Ubiquiti (NYSE:UI - Get Free Report) last issued its earnings results on Friday, August 22nd. The company reported $3.54 earnings per share for the quarter, beating analysts' consensus estimates of $2.23 by $1.31. The company had revenue of $759.15 million for the quarter, compared to the consensus estimate 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 prior year, the company earned $1.74 EPS. As a group, equities analysts anticipate that Ubiquiti Inc. will post 7.21 earnings per share for the current fiscal year.

Ubiquiti Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 8th. Investors of record on Tuesday, September 2nd were given a dividend of $0.80 per share. The ex-dividend date of this dividend was Tuesday, September 2nd. This is a positive change from Ubiquiti's previous quarterly dividend of $0.60. This represents a $3.20 dividend on an annualized basis and a yield of 0.4%. Ubiquiti's payout ratio is 27.19%.

Institutional Investors Weigh In On Ubiquiti

Large investors have recently made changes to their positions in the company. AQR Capital Management LLC increased its position in Ubiquiti by 133.9% during the first 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 last quarter. TD Asset Management Inc acquired a new position in Ubiquiti during the first quarter valued at approximately $34,013,000. Long Walk Management LP acquired a new stake in shares of Ubiquiti in the second quarter worth $28,480,000. Epoch Investment Partners Inc. bought a new stake in shares of Ubiquiti during the 1st quarter worth $18,897,000. Finally, Pacer Advisors Inc. grew its stake in Ubiquiti by 76.2% in the 1st 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 last quarter. Institutional investors own 4.00% of the company's stock.

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.

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