Ubiquiti Networks (NASDAQ:UBNT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Monday.

According to Zacks, “Ubiquiti is enjoying impressive momentum in the UniFi product family, which has contributed strongly to top-line growth in recent times. The company’s shares have charted an impressive trajectory in the past six months, outperforming the industry's gain. Going forward, the company believes traction of the recently launched products will drive top-line growth. Ubiquiti expects its Enterprise Technology business to grab a higher market share in the rest of the fiscal year, fuelled by strong demand for its products. However, on the flip side, macroeconomic problems like currency risks, rising labor costs in key locations and natural disasters pose concerns for the company. Also, an extremely competitive environment, which includes big multinational wireless telecom players, poses a threat to the company. The company also faces issues with its sales channel and supply chain execution, which affects operations and can directly impact margins.”

Several other equities research analysts have also commented on UBNT. Vetr lowered shares of Ubiquiti Networks from a “hold” rating to a “sell” rating and set a $71.07 price target for the company. in a report on Thursday, January 4th. JMP Securities reissued a “market perform” rating on shares of Ubiquiti Networks in a report on Wednesday, September 27th. BidaskClub lowered shares of Ubiquiti Networks from a “strong-buy” rating to a “buy” rating in a report on Saturday, December 2nd. ValuEngine raised shares of Ubiquiti Networks from a “hold” rating to a “buy” rating in a report on Friday, November 10th. Finally, BMO Capital Markets dropped their target price on shares of Ubiquiti Networks from $66.00 to $60.00 and set a “positive” rating for the company in a report on Friday, November 10th. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating, one has assigned a buy rating and one has given a strong buy rating to the company. The stock has an average rating of “Hold” and a consensus price target of $62.21.

Shares of Ubiquiti Networks (NASDAQ:UBNT) traded up $0.31 during midday trading on Monday, reaching $74.31. 16,434 shares of the company traded hands, compared to its average volume of 268,800. The stock has a market cap of $5,750.00, a price-to-earnings ratio of 23.59, a PEG ratio of 1.15 and a beta of 0.51. Ubiquiti Networks has a 12 month low of $45.71 and a 12 month high of $76.93.

Ubiquiti Networks (NASDAQ:UBNT) last issued its quarterly earnings results on Thursday, November 9th. The Wireless communications provider reported $0.92 EPS for the quarter, topping the consensus estimate of $0.86 by $0.06. The company had revenue of $245.90 million during the quarter, compared to analyst estimates of $240.39 million. Ubiquiti Networks had a net margin of 28.76% and a return on equity of 45.45%. The firm’s revenue was up 20.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.79 EPS. sell-side analysts anticipate that Ubiquiti Networks will post 3.35 EPS for the current fiscal year.

Ubiquiti Networks announced that its board has initiated a share buyback program on Thursday, November 9th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the Wireless communications provider to reacquire shares of its stock through open market purchases. Shares buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

Several institutional investors have recently added to or reduced their stakes in the company. Disciplined Growth Investors Inc. MN grew its holdings in shares of Ubiquiti Networks by 34.4% during the second quarter. Disciplined Growth Investors Inc. MN now owns 1,616,027 shares of the Wireless communications provider’s stock worth $83,985,000 after buying an additional 413,560 shares in the last quarter. Jackson Square Partners LLC grew its holdings in shares of Ubiquiti Networks by 21.1% during the third quarter. Jackson Square Partners LLC now owns 1,316,083 shares of the Wireless communications provider’s stock worth $73,726,000 after buying an additional 228,986 shares in the last quarter. Renaissance Technologies LLC grew its holdings in shares of Ubiquiti Networks by 2.5% during the second quarter. Renaissance Technologies LLC now owns 784,300 shares of the Wireless communications provider’s stock worth $40,760,000 after buying an additional 19,300 shares in the last quarter. Lagoda Investment Management L.P. grew its holdings in shares of Ubiquiti Networks by 8.0% during the second quarter. Lagoda Investment Management L.P. now owns 455,894 shares of the Wireless communications provider’s stock worth $23,693,000 after buying an additional 33,765 shares in the last quarter. Finally, Anchor Capital Advisors LLC purchased a new stake in shares of Ubiquiti Networks during the third quarter worth $20,244,000. 33.80% of the stock is owned by institutional investors and hedge funds.

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About Ubiquiti Networks

Ubiquiti Networks, Inc develops performance networking technology for service providers and enterprises. The Company offers a portfolio of networking products and solutions. Its service provider product platforms provide carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing.

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