Uniti Group (NASDAQ:UNIT) Trading Down 7.9% After Earnings Miss

Key Points

• Uniti Group's stock fell by 7.9% to $7.45 following a disappointing earnings report, missing earnings per share estimates by $0.06.
• The company recorded a net margin of 2.96% and a negative return on equity of 1.43%, despite a 2% increase in quarterly revenue compared to the previous year.
• Institutional investors have shown increased interest, with significant stake increases by firms like Wealth Enhancement Advisory Services LLC and Franklin Resources Inc.

Uniti Group Inc. (NASDAQ:UNIT - Get Free Report)'s stock price fell 7.9% during trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $7.44 and last traded at $7.45. 919,517 shares changed hands during trading, a decline of 17% from the average session volume of 1,107,025 shares. 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). Uniti Group had a net margin of 2.96% and a negative return on equity of 1.43%. The business had revenue of $300.73 million during the quarter, compared to analysts' expectations of $304.06 million. During the same period last year, the company earned $0.34 earnings per share. The firm's revenue was up 2.0% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on UNIT shares. Wall Street Zen downgraded shares of Uniti Group from a "hold" rating to a "sell" rating in a research note on Saturday. Citigroup reiterated a "neutral" rating and issued a $5.30 price target on shares of Uniti Group in a research note on Friday, May 16th. Finally, Wells Fargo & Company lifted their price target on shares of Uniti Group from $4.50 to $7.50 and gave the stock an "equal weight" rating in a research note on Thursday. 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. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $6.70.

Institutional Trading of Uniti Group

A number of institutional investors and hedge funds have recently bought and sold shares of UNIT. KBC Group NV acquired a new stake in Uniti Group in the first quarter valued at approximately $28,000. Allworth Financial LP grew its position in Uniti Group by 775.7% in the second quarter. Allworth Financial LP now owns 7,811 shares of the real estate investment trust's stock valued at $34,000 after acquiring an additional 6,919 shares in the last quarter. Park Avenue Securities LLC acquired a new stake in Uniti Group in the second quarter valued at approximately $45,000. American Century Companies Inc. acquired a new stake in Uniti Group in the first quarter valued at approximately $65,000. Finally, Inspire Advisors LLC acquired a new stake in Uniti Group in the first quarter valued at approximately $66,000. Institutional investors and hedge funds own 87.51% of the company's stock.

Uniti Group Price Performance

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

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.