Uniti Group (NASDAQ:UNIT) Sets New 1-Year Low Following Weak Earnings

Key Points

• Uniti Group's stock reached a new 52-week low of $6.81 following a disappointing earnings report, last trading at $7.25 after losing 10.4% in value.
• The company reported $0.36 EPS, missing estimates by $0.06, with a total revenue of $300.73 million, falling short of the expected $304.06 million.
• Several analysts have reduced their price targets on Uniti Group's stock, with Citigroup setting a target of $5.30 and Wells Fargo lowering theirs to $4.50.

Uniti Group Inc. (NASDAQ:UNIT - Get Free Report) shares hit a new 52-week low during trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $6.81 and last traded at $7.25, with a volume of 4767005 shares trading hands. The stock had previously closed at $8.09.

The real estate investment trust reported $0.36 EPS for the quarter, missing the consensus estimate of $0.42 by ($0.06). The company had revenue of $300.73 million during the quarter, compared to the consensus estimate of $304.06 million. Uniti Group had a net margin of 2.96% and a negative return on equity of 1.43%. Uniti Group's revenue for the quarter was up 2.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.34 EPS.

Wall Street Analyst Weigh In

UNIT has been the subject of several recent research reports. Wall Street Zen cut shares of Uniti Group from a "hold" rating to a "sell" rating in a research report on Saturday. Wells Fargo & Company boosted their price objective on shares of Uniti Group from $4.50 to $7.50 and gave the company an "equal weight" rating in a research note on Thursday. Finally, Citigroup reiterated a "neutral" rating and set a $5.30 price target on shares of Uniti Group in a report on Friday, May 16th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, Uniti Group has an average rating of "Hold" and an average target price of $6.70.

Institutional Trading of Uniti Group

A number of institutional investors have recently made changes to their positions in the stock. Intech Investment Management LLC lifted its holdings in Uniti Group by 36.1% during the second quarter. Intech Investment Management LLC now owns 995,169 shares of the real estate investment trust's stock valued at $4,299,000 after purchasing an additional 263,902 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its position in Uniti Group by 7.9% during the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 63,018 shares of the real estate investment trust's stock valued at $272,000 after acquiring an additional 4,600 shares during the last quarter. Police & Firemen s Retirement System of New Jersey grew its holdings in shares of Uniti Group by 10.5% in the second quarter. Police & Firemen s Retirement System of New Jersey now owns 56,518 shares of the real estate investment trust's stock worth $244,000 after purchasing an additional 5,361 shares during the last quarter. M&G PLC bought a new position in shares of Uniti Group in the second quarter worth about $198,000. Finally, Jupiter Asset Management Ltd. purchased a new stake in Uniti Group in the second quarter worth about $731,000. Hedge funds and other institutional investors own 87.51% of the company's stock.

Uniti Group Stock Down 9.4%

The firm has a market capitalization of $939.67 million, a PE ratio of 23.08 and a beta of 1.47. The company's 50-day simple moving average is $4.85 and its 200 day simple moving average is $4.94.

About Uniti Group

Uniti Group, Inc is a real estate investment trust company, which engages in the acquisition, construction, and leasing of properties. It operates through the following business segments: Uniti Leasing, Uniti Fiber, and Corporate. The Uniti Leasing segment involves mission-critical communications assets on exclusive or shared-tenant basis, and dark fiber network.