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 investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Wednesday,Zacks.com reports.

Several other brokerages have also recently issued reports on UNIT. Citigroup restated a "neutral" rating and issued a $5.30 target price on shares of Uniti Group in a report on Friday, May 16th. Wells Fargo & Company upped their price target on Uniti Group from $4.50 to $7.50 and gave the company an "equal weight" rating in a research note on Thursday, August 7th. Finally, Wall Street Zen lowered Uniti Group from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. One research analyst has rated the stock with a Strong Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $6.70.

Uniti Group Trading Down 2.4%

NASDAQ:UNIT traded down $0.17 during trading hours on Wednesday, hitting $6.94. The company had a trading volume of 1,770,345 shares, compared to its average volume of 3,190,960. The company has a 50-day moving average of $5.98 and a 200 day moving average of $5.10. The company has a market cap of $1.03 billion, a P/E ratio of 25.22 and a beta of 1.51. 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 issued its earnings results on Tuesday, August 5th. 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). The company had revenue of $300.73 million during the quarter, compared to analysts' expectations of $304.06 million. Uniti Group had a net margin of 2.96% and a negative return on equity of 1.43%. The firm's quarterly revenue was up 2.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.34 earnings per share. Uniti Group has set its FY 2025 guidance at EPS. On average, analysts forecast that Uniti Group will post 1.28 earnings per share for the current year.

Hedge Funds Weigh In On Uniti Group

Several hedge funds have recently bought and sold shares of the company. Osaic Holdings Inc. lifted its stake in Uniti Group by 20.6% during the 2nd quarter. Osaic Holdings Inc. now owns 10,511 shares of the real estate investment trust's stock worth $46,000 after acquiring an additional 1,795 shares in the last quarter. Thrivent Financial for Lutherans lifted its stake in Uniti Group by 36.5% during 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 acquiring an additional 880,394 shares in the last quarter. Neuberger Berman Group LLC lifted its stake in 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 acquiring an additional 3,806 shares in the last quarter. State of Wyoming lifted its stake in Uniti Group by 22.5% during the 2nd quarter. State of Wyoming now owns 62,567 shares of the real estate investment trust's stock worth $270,000 after acquiring an additional 11,483 shares in the last quarter. Finally, CANADA LIFE ASSURANCE Co lifted its stake in Uniti Group by 3.1% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 259,142 shares of the real estate investment trust's stock worth $1,120,000 after acquiring an additional 7,726 shares in the last quarter. 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.