Ubiquiti (NYSE:UI) Shares Down 10.7% on Disappointing Earnings

Ubiquiti Inc. (NYSE:UI) was down 10.7% during mid-day trading on Monday following a weaker than expected earnings announcement. The company traded as low as $735.07 and last traded at $751.78. Approximately 43,374 shares traded hands during mid-day trading, a decline of 58% from the average daily volume of 103,644 shares. The stock had previously closed at $842.10.

The company reported $3.88 EPS for the quarter, missing the consensus estimate of $4.29 by ($0.41). Ubiquiti had a return on equity of 106.03% and a net margin of 30.43%.The business had revenue of $788.20 million for the quarter, compared to analysts’ expectations of $814.30 million. The business’s revenue for the quarter was up 18.7% compared to the same quarter last year.

Ubiquiti Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, May 26th. Investors of record on Monday, May 18th will be given a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 0.4%. The ex-dividend date is Monday, May 18th. Ubiquiti’s payout ratio is presently 21.80%.

Analyst Ratings Changes

UI has been the subject of a number of recent analyst reports. Wall Street Zen lowered Ubiquiti from a “buy” rating to a “hold” rating in a research report on Monday, April 27th. Barclays reaffirmed an “underweight” rating and set a $672.00 price target on shares of Ubiquiti in a research report on Monday. BWS Financial upped their price target on Ubiquiti from $720.00 to $980.00 and gave the company a “buy” rating in a research report on Monday, April 13th. Zacks Research lowered Ubiquiti from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, April 21st. Finally, Weiss Ratings raised Ubiquiti from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, March 23rd. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Ubiquiti presently has a consensus rating of “Hold” and an average price target of $750.67.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Wealthspire Advisors LLC grew its holdings in shares of Ubiquiti by 3.3% during the 4th quarter. Wealthspire Advisors LLC now owns 506 shares of the company’s stock worth $280,000 after acquiring an additional 16 shares during the period. PNC Financial Services Group Inc. grew its holdings in shares of Ubiquiti by 7.1% during the 3rd quarter. PNC Financial Services Group Inc. now owns 256 shares of the company’s stock worth $169,000 after acquiring an additional 17 shares during the period. Stratos Wealth Partners LTD. grew its holdings in shares of Ubiquiti by 3.0% during the 4th quarter. Stratos Wealth Partners LTD. now owns 659 shares of the company’s stock worth $365,000 after acquiring an additional 19 shares during the period. Dimensional Fund Advisors LP grew its holdings in shares of Ubiquiti by 0.8% during the 3rd quarter. Dimensional Fund Advisors LP now owns 2,574 shares of the company’s stock worth $1,700,000 after acquiring an additional 20 shares during the period. Finally, Blue Trust Inc. grew its holdings in shares of Ubiquiti by 87.5% during the 4th 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. Hedge funds and other institutional investors own 4.00% of the company’s stock.

Ubiquiti Trading Down 12.0%

The business has a fifty day simple moving average of $870.91 and a two-hundred day simple moving average of $703.44. The stock has a market cap of $44.84 billion, a PE ratio of 47.62 and a beta of 1.46.

About Ubiquiti

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.