Ubiquiti Networks Inc. (UBNT) Cut to “Hold” at Zacks Investment Research
According to Zacks, “Ubiquiti has had an impeccable earnings surprise history in the last four trailing quarters, having beaten estimates strongly all through. Successful product launches, coupled with impressive performance from the Enterprise Technology segment, have boosted the company’s operations. Also, strong performance of UniFi AC access points and other products is driving sales growth for the company. The company’s competitively priced network and proprietary network communication platform have been driving significant demand for its products. However, macroeconomic problems like currency risks, rising labor costs in China and intensifying competition remain concerns.Also, risks related to intellectual property rights are very high for the company, particularly in some key markets including South America and China, which may pose as headwinds in the future. Moreover, stringent government legislations add to Ubiquiti’s woes.”
Several other equities research analysts have also issued reports on UBNT. Morgan Stanley set a $28.00 target price on shares of Ubiquiti Networks and gave the stock a sell rating in a report on Friday, August 5th. Wunderlich raised their target price on shares of Ubiquiti Networks from $48.00 to $55.00 and gave the stock a buy rating in a report on Friday, August 5th. Finally, Deutsche Bank AG set a $31.00 target price on shares of Ubiquiti Networks and gave the stock a hold rating in a report on Friday, August 5th. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and one has issued a buy rating to the company. The stock has an average rating of Hold and a consensus price target of $37.11.
Shares of Ubiquiti Networks (NASDAQ:UBNT) opened at 53.79 on Thursday. The firm has a 50-day moving average of $52.92 and a 200-day moving average of $42.84. The stock has a market cap of $4.40 billion, a PE ratio of 21.60 and a beta of 1.32. Ubiquiti Networks has a one year low of $25.75 and a one year high of $55.00.
Ubiquiti Networks (NASDAQ:UBNT) last released its quarterly earnings data on Thursday, August 4th. The company reported $0.69 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.64 by $0.05. Ubiquiti Networks had a net margin of 32.06% and a return on equity of 47.65%. The business earned $185.70 million during the quarter, compared to analyst estimates of $174.47 million. During the same quarter last year, the business earned $0.50 earnings per share. Ubiquiti Networks’s quarterly revenue was up 27.8% compared to the same quarter last year. On average, equities research analysts expect that Ubiquiti Networks will post $2.78 earnings per share for the current fiscal year.
In other Ubiquiti Networks news, VP Benjamin Moore sold 150,000 shares of the firm’s stock in a transaction dated Thursday, September 15th. The shares were sold at an average price of $51.20, for a total transaction of $7,680,000.00. Following the transaction, the vice president now owns 758 shares of the company’s stock, valued at approximately $38,809.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 69.08% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its position in Ubiquiti Networks by 2.9% in the second quarter. Vanguard Group Inc. now owns 1,882,457 shares of the company’s stock worth $72,776,000 after buying an additional 52,733 shares during the period. Dimensional Fund Advisors LP increased its position in Ubiquiti Networks by 8.9% in the second quarter. Dimensional Fund Advisors LP now owns 1,140,799 shares of the company’s stock worth $44,102,000 after buying an additional 92,770 shares during the period. BlackRock Institutional Trust Company N.A. increased its position in Ubiquiti Networks by 29.1% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 844,729 shares of the company’s stock worth $32,657,000 after buying an additional 190,506 shares during the period. Teachers Advisors Inc. increased its position in Ubiquiti Networks by 8.5% in the second quarter. Teachers Advisors Inc. now owns 295,709 shares of the company’s stock worth $11,432,000 after buying an additional 23,122 shares during the period. Finally, JPMorgan Chase & Co. increased its position in Ubiquiti Networks by 40.2% in the first quarter. JPMorgan Chase & Co. now owns 286,985 shares of the company’s stock worth $9,547,000 after buying an additional 82,220 shares during the period. 30.22% of the stock is currently owned by institutional investors and hedge funds.
About Ubiquiti Networks
Ubiquiti Networks, Inc, develops high performance networking technology for service providers and enterprises. The Company’s technology platforms for service providers enable carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing. The Company’s technology platforms for enterprises enable wireless local area network (WLAN) infrastructure, video surveillance products, and machine-to-machine communications.
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