Uniti Group (NASDAQ:UNIT) Reaches New 1-Year Low on Disappointing 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)'s share price hit a new 52-week low during mid-day trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $6.81 and last traded at $7.25, with a volume of 4767005 shares changing hands. The stock had previously closed at $8.09.

The real estate investment trust reported $0.36 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.42 by ($0.06). Uniti Group had a net margin of 2.96% and a negative return on equity of 1.43%. The company had revenue of $300.73 million for the quarter, compared to analyst estimates of $304.06 million. During the same quarter in the prior year, the firm earned $0.34 EPS. The company's revenue for the quarter was up 2.0% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on UNIT. Citigroup reiterated a "neutral" rating and issued a $5.30 price target on shares of Uniti Group in a research report on Friday, May 16th. Wells Fargo & Company upped 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.

Institutional Trading of Uniti Group

Hedge funds have recently modified their holdings of the business. JPMorgan Chase & Co. lifted its stake in Uniti Group by 42.0% in the 4th quarter. JPMorgan Chase & Co. now owns 1,787,257 shares of the real estate investment trust's stock worth $9,830,000 after acquiring an additional 529,050 shares in the last quarter. Franklin Resources Inc. increased its holdings in shares of Uniti Group by 3.0% in the 4th quarter. Franklin Resources Inc. now owns 109,243 shares of the real estate investment trust's stock valued at $601,000 after purchasing an additional 3,139 shares during the period. Geode Capital Management LLC lifted its position in shares of Uniti Group by 1.6% in the fourth quarter. Geode Capital Management LLC now owns 6,317,569 shares of the real estate investment trust's stock worth $34,754,000 after purchasing an additional 101,702 shares in the last quarter. Massachusetts Financial Services Co. MA purchased a new position in shares of Uniti Group during the 4th quarter valued at $207,000. Finally, ExodusPoint Capital Management LP purchased a new stake in shares of Uniti Group during the 4th quarter worth about $1,151,000. Hedge funds and other institutional investors own 87.51% of the company's stock.

Uniti Group Price Performance

The company has a market capitalization of $939.67 million, a P/E ratio of 23.08 and a beta of 1.47. The company has a fifty day simple moving average of $4.81 and a two-hundred day simple moving average of $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.