Uniti Group (NASDAQ:UNIT) Trading Down 7.9% on Disappointing Earnings

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) traded down 7.9% during mid-day 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 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.06). Uniti Group had a negative return on equity of 1.43% and a net margin of 2.96%. During the same period in the prior year, the company earned $0.34 earnings per share. The firm's quarterly revenue was up 2.0% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Wells Fargo & Company lowered their target price on Uniti Group from $5.00 to $4.50 and set an "equal weight" rating for the company in a report on Thursday, May 8th. Citigroup restated a "neutral" rating and issued a $5.30 price objective on shares of Uniti Group in a report on Friday, May 16th.

Institutional Investors Weigh In On Uniti Group

Hedge funds and other institutional investors have recently made changes to their positions in the business. Wealth Enhancement Advisory Services LLC increased its stake in Uniti Group by 10.9% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 24,834 shares of the real estate investment trust's stock valued at $137,000 after acquiring an additional 2,447 shares during the last quarter. Franklin Resources Inc. increased its stake in Uniti Group by 3.0% in the fourth quarter. Franklin Resources Inc. now owns 109,243 shares of the real estate investment trust's stock valued at $601,000 after acquiring an additional 3,139 shares during the last quarter. California State Teachers Retirement System increased its stake in Uniti Group by 1.5% in the fourth quarter. California State Teachers Retirement System now owns 228,227 shares of the real estate investment trust's stock valued at $1,255,000 after acquiring an additional 3,287 shares during the last quarter. Russell Investments Group Ltd. increased its stake in Uniti Group by 23.2% in the fourth quarter. Russell Investments Group Ltd. now owns 22,814 shares of the real estate investment trust's stock valued at $125,000 after acquiring an additional 4,293 shares during the last quarter. Finally, KBC Group NV bought a new position in Uniti Group in the first quarter valued at approximately $28,000. 87.51% of the stock is currently owned by institutional investors and hedge funds.

Uniti Group Stock Down 7.8%

The business's 50 day moving average is $4.65 and its 200-day moving average is $4.90. The firm has a market capitalization of $1.83 billion, a P/E ratio of 28.67 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.

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