Ubiquiti (NYSE:UI) Shares Gap Down on Disappointing Earnings

Key Points

• Shares plunged after a profit miss: Ubiquiti stock gapped down pre-market (from $926.69 to an $870.00 open) after reporting EPS of $3.88 versus the $4.29 consensus and revenue of $788.2M versus the expected $814.3M.
• Despite the miss, revenue grew 18.7% year-over-year and the company showed strong profitability metrics (net margin 29.9% and return on equity 113.21%).
• Analyst sentiment is mixed with a MarketBeat consensus of "Hold" and an average price target of $702.33, while individual targets and ratings range widely (e.g., BWS $980 buy vs. Barclays $527 underweight).

Ubiquiti Inc. (NYSE:UI - Get Free Report)'s share price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $926.69, but opened at $870.00. Ubiquiti shares last traded at $877.6850, with a volume of 52,010 shares.

The company reported $3.88 earnings per share for the quarter, missing analysts' consensus estimates of $4.29 by ($0.41). Ubiquiti had a net margin of 29.90% and a return on equity of 113.21%. The firm had revenue of $788.20 million during the quarter, compared to the consensus estimate of $814.30 million. Ubiquiti's revenue for the quarter was up 18.7% compared to the same quarter last year.

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Analysts Set New Price Targets

A number of analysts have commented on the company. Weiss Ratings upgraded Ubiquiti from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 23rd. Wall Street Zen cut Ubiquiti from a "buy" rating to a "hold" rating in a research report on Monday, April 27th. Zacks Research lowered Ubiquiti from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 21st. BWS Financial upped their price objective on Ubiquiti from $720.00 to $980.00 and gave the stock a "buy" rating in a research note on Monday, April 13th. Finally, Barclays upped their price objective on Ubiquiti from $455.00 to $527.00 and gave the stock an "underweight" rating in a research note on Friday, February 6th. Two equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Ubiquiti presently has a consensus rating of "Hold" and an average price target of $702.33.

Institutional Investors Weigh In On Ubiquiti

A number of hedge funds have recently made changes to their positions in UI. Vision Retirement LLC bought a new stake in Ubiquiti during the first quarter worth approximately $25,000. Blue Trust Inc. increased its stake in Ubiquiti by 87.5% during the fourth quarter. Blue Trust Inc. now owns 45 shares of the company's stock worth $25,000 after acquiring an additional 21 shares during the last quarter. Cherry Tree Wealth Management LLC purchased a new position in shares of Ubiquiti during the third quarter valued at approximately $33,000. Quarry LP purchased a new position in shares of Ubiquiti during the third quarter valued at approximately $34,000. Finally, CIBC Private Wealth Group LLC boosted its position in shares of Ubiquiti by 238.1% during the fourth quarter. CIBC Private Wealth Group LLC now owns 71 shares of the company's stock valued at $39,000 after buying an additional 50 shares during the period. 4.00% of the stock is currently owned by hedge funds and other institutional investors.

Ubiquiti Price Performance

The firm has a market cap of $53.45 billion, a PE ratio of 60.09 and a beta of 1.46. The company has a 50-day simple moving average of $870.91 and a 200-day simple moving average of $703.44.

About Ubiquiti

Ubiquiti Inc NYSE: UI is a U.S.-based technology company that designs and sells networking and wireless communication products for enterprise, service provider and consumer markets. Its product portfolio includes Wi‑Fi access points, routers and gateways, managed Ethernet switches, network management software, and IP surveillance systems. Ubiquiti's offerings are organized under several well‑known lines—most notably UniFi for managed LAN/Wi‑Fi and networked video, AmpliFi for consumer Wi‑Fi, and product families targeting service‑provider and point‑to‑point wireless broadband applications.

The company emphasizes integrated hardware and software solutions, with centralized management and cloud‑enabled control as core features of its platform approach.

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