Ubiquiti (NYSE:UI) Shares Gap Down on Disappointing Earnings

Ubiquiti Inc. (NYSE:UI)’s share price gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $926.69, but opened at $870.00. Ubiquiti shares last traded at $877.6850, with a volume of 52,010 shares trading hands.

The company reported $3.88 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.29 by ($0.41). The business had revenue of $788.20 million for the quarter, compared to analysts’ expectations of $814.30 million. Ubiquiti had a net margin of 29.90% and a return on equity of 113.21%. Ubiquiti’s revenue for the quarter was up 18.7% compared to the same quarter last year.

Analyst Ratings Changes

Several research firms recently issued reports on UI. Zacks Research downgraded Ubiquiti from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, April 21st. Weiss Ratings raised Ubiquiti from a “hold (c+)” rating to a “buy (b-)” rating in a report on Monday, March 23rd. BWS Financial raised their price objective on Ubiquiti from $720.00 to $980.00 and gave the stock a “buy” rating in a research note on Monday, April 13th. Wall Street Zen downgraded Ubiquiti from a “buy” rating to a “hold” rating in a report on Monday, April 27th. Finally, Barclays increased their price target on shares of Ubiquiti from $455.00 to $527.00 and gave the stock an “underweight” rating in a report on Friday, February 6th. Two equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $702.33.

Hedge Funds Weigh In On Ubiquiti

A number of institutional investors have recently modified their holdings of UI. Vision Retirement LLC acquired a new position in shares of Ubiquiti in the 1st quarter valued at about $25,000. Blue Trust Inc. grew its holdings in Ubiquiti by 87.5% during the fourth quarter. Blue Trust Inc. now owns 45 shares of the company’s stock worth $25,000 after acquiring an additional 21 shares during the period. Cherry Tree Wealth Management LLC purchased a new position in Ubiquiti during the third quarter valued at approximately $33,000. Quarry LP purchased a new position in Ubiquiti during the third quarter valued at approximately $34,000. Finally, CIBC Private Wealth Group LLC lifted its holdings in Ubiquiti by 238.1% in the fourth quarter. CIBC Private Wealth Group LLC now owns 71 shares of the company’s stock valued at $39,000 after acquiring an additional 50 shares during the period. Hedge funds and other institutional investors own 4.00% of the company’s stock.

Ubiquiti Price Performance

The stock has a fifty day simple moving average of $870.91 and a 200-day simple moving average of $703.44. The company has a market capitalization of $53.45 billion, a price-to-earnings ratio of 60.09 and a beta of 1.46.

Ubiquiti Company Profile

Ubiquiti Inc (NYSE: UI) is a U.S.-based technology company that designs and sells networking and wireless communication products for enterprise, service provider and consumer markets. Its product portfolio includes Wi‑Fi access points, routers and gateways, managed Ethernet switches, network management software, and IP surveillance systems. Ubiquiti’s offerings are organized under several well‑known lines—most notably UniFi for managed LAN/Wi‑Fi and networked video, AmpliFi for consumer Wi‑Fi, and product families targeting service‑provider and point‑to‑point wireless broadband applications.

The company emphasizes integrated hardware and software solutions, with centralized management and cloud‑enabled control as core features of its platform approach.