Ubiquiti (NYSE:UI) Upgraded at Zacks Research

Key Points

• Zacks Research upgraded Ubiquiti from a “hold” to a “strong-buy,” adding to a mixed but generally positive analyst backdrop. MarketBeat says the stock now has a consensus rating of “Moderate Buy” with an average target price of $750.67.
• Ubiquiti shares were little changed, opening at $545.69 and trading up 0.3% on the day. The stock remains below both its 50-day average of $576.75 and 200-day average of $690.20.
• Latest earnings missed expectations: Ubiquiti reported $3.88 EPS versus $4.29 expected and revenue of $788.2 million versus $814.3 million expected, though revenue still rose 18.7% year over year. The company also posted strong profitability metrics, including a 30.43% net margin and 95.62% return on equity.

Ubiquiti (NYSE:UI - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Thursday,Zacks.com reports.

A number of other equities research analysts also recently weighed in on UI. Weiss Ratings downgraded shares of Ubiquiti from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, May 29th. BWS Financial reaffirmed a "buy" rating and set a $980.00 target price on shares of Ubiquiti in a report on Wednesday, July 8th. Barclays upped their target price on shares of Ubiquiti from $527.00 to $672.00 and gave the company an "underweight" rating in a research report on Monday, May 11th. Finally, Wall Street Zen downgraded Ubiquiti from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $750.67.

Ubiquiti Stock Up 0.3%

Shares of UI stock opened at $545.69 on Thursday. The stock has a 50-day moving average price of $576.75 and a 200 day moving average price of $690.20. The firm has a market cap of $33.02 billion, a price-to-earnings ratio of 35.07 and a beta of 1.31. Ubiquiti has a 12 month low of $380.00 and a 12 month high of $1,099.99.

Ubiquiti (NYSE:UI - Get Free Report) last released its earnings results on Friday, May 8th. The company reported $3.88 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.29 by ($0.41). The business had revenue of $788.20 million for the quarter, compared to analyst estimates of $814.30 million. Ubiquiti had a net margin of 30.43% and a return on equity of 95.62%. The business's revenue was up 18.7% on a year-over-year basis. Sell-side analysts predict that Ubiquiti will post 14.82 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Ubiquiti

Several hedge funds have recently bought and sold shares of UI. Corient Private Wealth LLC grew its holdings in shares of Ubiquiti by 73,940.4% in the 4th quarter. Corient Private Wealth LLC now owns 1,113,568 shares of the company's stock valued at $616,193,000 after buying an additional 1,112,064 shares during the period. Arrowstreet Capital Limited Partnership lifted its holdings in Ubiquiti by 11.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 183,464 shares of the company's stock worth $101,520,000 after acquiring an additional 19,504 shares in the last quarter. Wealth Enhancement Advisory Services LLC lifted its holdings in Ubiquiti by 244.3% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 155,916 shares of the company's stock worth $88,815,000 after acquiring an additional 110,632 shares in the last quarter. Morgan Stanley grew its stake in Ubiquiti by 7.7% in the fourth quarter. Morgan Stanley now owns 102,022 shares of the company's stock valued at $56,454,000 after acquiring an additional 7,338 shares during the period. Finally, Capital World Investors grew its stake in Ubiquiti by 16.2% in the fourth quarter. Capital World Investors now owns 100,056 shares of the company's stock valued at $55,366,000 after acquiring an additional 13,970 shares during the period. 4.00% of the stock is currently owned by institutional investors and hedge funds.

Ubiquiti Company Profile

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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