Ubiquiti (NYSE:UI) Shares Climb 6.2% – Here’s Why

Ubiquiti Inc. (NYSE:UI) shares rose 6.2% during trading on Thursday. The company traded as high as $598.08 and last traded at $602.7460. 36,921 shares traded hands during trading, a decline of 69% from the average session volume of 120,577 shares. The stock had previously closed at $567.53.

Analyst Upgrades and Downgrades

UI has been the subject of several research analyst reports. Barclays dropped their price objective on Ubiquiti from $672.00 to $489.00 and set an “underweight” rating for the company in a report on Monday, August 24th. BWS Financial reissued a “buy” rating and set a $980.00 target price on shares of Ubiquiti in a research note on Tuesday. Zacks Research upgraded Ubiquiti from a “hold” rating to a “strong-buy” rating in a report on Friday, September 18th. Finally, Weiss Ratings lowered Ubiquiti from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, August 21st. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Ubiquiti presently has an average rating of “Moderate Buy” and an average target price of $734.50.

Ubiquiti Stock Up 1.7%

The company has a market cap of $37.53 billion, a PE ratio of 39.12 and a beta of 1.30. The firm’s 50-day moving average is $571.08 and its 200-day moving average is $660.60.

Ubiquiti (NYSE:UI) last issued its quarterly earnings data on Friday, August 21st. The company reported $4.73 EPS for the quarter, topping the consensus estimate of $4.03 by $0.70. Ubiquiti had a net margin of 29.33% and a return on equity of 85.57%. The business had revenue of $937.32 million during the quarter, compared to analyst estimates of $850.50 million. During the same period last year, the business posted $4.41 earnings per share. As a group, equities research analysts anticipate that Ubiquiti Inc. will post 16.94 EPS for the current fiscal year.

Ubiquiti Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Monday, August 31st were paid a $1.00 dividend. The ex-dividend date of this dividend was Monday, August 31st. This is a positive change from Ubiquiti’s previous quarterly dividend of $0.80. This represents a $4.00 annualized dividend and a yield of 0.6%. Ubiquiti’s payout ratio is currently 25.24%.

Hedge Funds Weigh In On Ubiquiti

A number of institutional investors have recently added to or reduced their stakes in the company. Corient Private Wealth LLC boosted its holdings in shares of Ubiquiti by 73,940.4% during the 4th quarter. Corient Private Wealth LLC now owns 1,113,568 shares of the company’s stock valued at $616,193,000 after buying an additional 1,112,064 shares in the last quarter. BlackRock Inc. bought a new position in shares of Ubiquiti in the 2nd quarter worth about $163,010,000. Arrowstreet Capital Limited Partnership increased its stake in shares of Ubiquiti by 11.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 183,464 shares of the company’s stock worth $101,520,000 after acquiring an additional 19,504 shares in the last quarter. Capital World Investors lifted its position in Ubiquiti by 16.2% during the 4th quarter. Capital World Investors now owns 100,056 shares of the company’s stock valued at $55,366,000 after acquiring an additional 13,970 shares during the period. Finally, Bank of New York Mellon Corp purchased a new position in Ubiquiti during the 2nd quarter valued at about $30,086,000. Institutional investors own 4.00% of the company’s stock.

About Ubiquiti

Ubiquiti Inc develops and sells networking technology for businesses, service providers and consumers worldwide. The company designs products intended to deliver wireless connectivity, network management, security and other communications capabilities, with an emphasis on scalable and easy-to-deploy solutions.

Its product portfolio includes wireless access points, routers, switches, gateways, broadband wireless equipment, network management software, video surveillance systems, security and access-control products, and smart-home devices.