Wall Street Zen Downgrades Ubiquiti (NYSE:UI) to Hold

Key Points

• Wall Street Zen downgraded Ubiquiti from a "buy" to a "hold"; analyst views are mixed otherwise and the stock's consensus rating is Hold with an average price target of $702.33.
• Ubiquiti beat last quarter's expectations, reporting $3.88 EPS vs. $3.08 estimated and $814.87M revenue vs. $716.95M, with 35.8% YoY revenue growth, a 29.9% net margin and 113.21% ROE.
• The stock is trading well above prior levels (opened at $1,031.33; 52‑week high $1,099.99), has a market cap of $62.42B and a P/E of 70.25, reflecting elevated valuation despite mixed analyst sentiment.

Ubiquiti (NYSE:UI - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Monday.

A number of other research analysts also recently weighed in on UI. Weiss Ratings upgraded shares of Ubiquiti from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 23rd. Zacks Research downgraded shares of Ubiquiti from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, April 21st. Barclays upped their price objective on shares of Ubiquiti from $455.00 to $527.00 and gave the stock an "underweight" rating in a research report on Friday, February 6th. Finally, BWS Financial upped their price objective on shares of Ubiquiti from $720.00 to $980.00 and gave the stock a "buy" rating in a research report on Monday, April 13th. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $702.33.

Ubiquiti Stock Performance

Shares of Ubiquiti stock opened at $1,031.33 on Monday. The firm has a 50-day simple moving average of $833.55 and a two-hundred day simple moving average of $690.12. The company has a market cap of $62.42 billion, a P/E ratio of 70.25 and a beta of 1.32. Ubiquiti has a fifty-two week low of $307.51 and a fifty-two week high of $1,099.99.

Ubiquiti (NYSE:UI - Get Free Report) last issued its quarterly earnings data on Friday, February 6th. The company reported $3.88 earnings per share for the quarter, topping analysts' consensus estimates of $3.08 by $0.80. The business had revenue of $814.87 million during the quarter, compared to the consensus estimate of $716.95 million. Ubiquiti had a net margin of 29.90% and a return on equity of 113.21%. The company's revenue was up 35.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.28 earnings per share. Equities research analysts forecast that Ubiquiti will post 14.04 EPS for the current year.

Institutional Trading of Ubiquiti

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Blue Trust Inc. grew its stake in Ubiquiti by 87.5% during the 4th quarter. Blue Trust Inc. now owns 45 shares of the company's stock valued at $25,000 after acquiring an additional 21 shares in the last quarter. Cherry Tree Wealth Management LLC purchased a new stake in Ubiquiti during the 3rd quarter valued at about $33,000. Quarry LP purchased a new stake in Ubiquiti during the 3rd quarter valued at about $34,000. CIBC Private Wealth Group LLC grew its stake in Ubiquiti by 238.1% during the 4th quarter. CIBC Private Wealth Group LLC now owns 71 shares of the company's stock valued at $39,000 after acquiring an additional 50 shares in the last quarter. Finally, CANADA LIFE ASSURANCE Co grew its stake in Ubiquiti by 216.0% during the 4th quarter. CANADA LIFE ASSURANCE Co now owns 79 shares of the company's stock valued at $44,000 after acquiring an additional 54 shares in the last quarter. Hedge funds and other institutional investors own 4.00% of the company's stock.

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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