Uniti Group (NASDAQ:UNIT) Lowered to Strong Sell Rating by Zacks Research

Key Points

• Zacks Research has downgraded Uniti Group (NASDAQ:UNIT) from a "hold" rating to a "strong sell" rating, amid concerns over its performance.
• The company reported a missed earnings estimate for the last quarter, with earnings per share at $0.36 compared to the expected $0.42.
• Despite the downgrade, Uniti Group's stock price saw a 3.8% increase on the day it opened at $7.11, indicating some investor interest amidst general market skepticism.

Uniti Group (NASDAQ:UNIT - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Wednesday, September 10th,Zacks.com reports.

Other analysts also recently issued reports about the stock. Wells Fargo & Company boosted their target price 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, August 7th. Wall Street Zen lowered Uniti Group from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Finally, Citigroup reaffirmed a "neutral" rating and set a $5.30 target price on shares of Uniti Group in a research note on Friday, May 16th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Uniti Group currently has a consensus rating of "Hold" and an average target price of $6.70.

Uniti Group Stock Performance

Shares of NASDAQ:UNIT traded up $0.14 during midday trading on Wednesday, reaching $6.73. The company had a trading volume of 757,570 shares, compared to its average volume of 1,470,203. The company has a fifty day simple moving average of $6.07 and a two-hundred day simple moving average of $5.11. The firm has a market cap of $995.17 million, a price-to-earnings ratio of 24.44 and a beta of 1.50. Uniti Group has a 1-year low of $5.68 and a 1-year high of $12.62.

Uniti Group (NASDAQ:UNIT - Get Free Report) last announced its earnings results on Tuesday, August 5th. 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 negative return on equity of 1.43% and a net margin of 2.96%.The firm had revenue of $300.73 million during the quarter, compared to analyst estimates of $304.06 million. During the same quarter in the previous year, the business earned $0.34 earnings per share. The business's quarterly revenue was up 2.0% compared to the same quarter last year. Uniti Group has set its FY 2025 guidance at EPS. Analysts expect that Uniti Group will post 1.28 EPS for the current year.

Institutional Investors Weigh In On Uniti Group

Institutional investors have recently bought and sold shares of the business. Osaic Holdings Inc. increased its holdings in Uniti Group by 20.6% in the 2nd quarter. Osaic Holdings Inc. now owns 10,511 shares of the real estate investment trust's stock valued at $46,000 after buying an additional 1,795 shares during the period. Thrivent Financial for Lutherans raised its holdings in shares of Uniti Group by 36.5% in the 2nd quarter. Thrivent Financial for Lutherans now owns 3,290,053 shares of the real estate investment trust's stock worth $14,213,000 after buying an additional 880,394 shares in the last quarter. Neuberger Berman Group LLC lifted its position in shares of Uniti Group by 12.1% during the 2nd quarter. Neuberger Berman Group LLC now owns 35,156 shares of the real estate investment trust's stock worth $152,000 after buying an additional 3,806 shares during the period. State of Wyoming boosted its stake in Uniti Group by 22.5% in the 2nd quarter. State of Wyoming now owns 62,567 shares of the real estate investment trust's stock valued at $270,000 after buying an additional 11,483 shares in the last quarter. Finally, CANADA LIFE ASSURANCE Co grew its position in Uniti Group by 3.1% in the second quarter. CANADA LIFE ASSURANCE Co now owns 259,142 shares of the real estate investment trust's stock valued at $1,120,000 after acquiring an additional 7,726 shares during the period. Institutional investors and hedge funds own 87.51% of the company's stock.

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.