Ubiquiti (NYSE:UI) Trading Down 5.4% – What’s Next?

Shares of Ubiquiti Inc. (NYSE:UI) traded down 5.4% on Wednesday . The company traded as low as $538.97 and last traded at $548.9110. 66,145 shares changed hands during trading, a decline of 44% from the average session volume of 117,712 shares. The stock had previously closed at $580.53.

Analyst Ratings Changes

Several brokerages have recently issued reports on UI. Zacks Research cut shares of Ubiquiti from a “strong-buy” rating to a “hold” rating in a report on Friday, August 14th. Weiss Ratings cut shares of Ubiquiti from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, August 21st. BWS Financial restated a “buy” rating and issued a $980.00 price objective on shares of Ubiquiti in a research note on Thursday, August 27th. Finally, Barclays cut their target price on Ubiquiti from $672.00 to $489.00 and set an “underweight” rating on the stock in a research report on Monday, August 24th. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $734.50.

Ubiquiti Stock Performance

The company has a 50-day moving average of $558.69 and a 200-day moving average of $681.08. The stock has a market cap of $32.48 billion, a price-to-earnings ratio of 33.86 and a beta of 1.31.

Ubiquiti (NYSE:UI) last posted its quarterly earnings data on Friday, August 21st. The company reported $4.73 earnings per share for the quarter, topping analysts’ consensus estimates of $4.03 by $0.70. Ubiquiti had a return on equity of 85.57% and a net margin of 29.33%.The company had revenue of $937.32 million during the quarter, compared to analysts’ expectations of $850.50 million. During the same period last year, the firm earned $4.41 EPS. As a group, equities research analysts forecast that Ubiquiti Inc. will post 15.53 EPS for the current year.

Ubiquiti Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 8th. Investors of record on Monday, August 31st were issued a dividend of $1.00 per share. This is a boost from Ubiquiti’s previous quarterly dividend of $0.80. This represents a $4.00 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, August 31st. Ubiquiti’s dividend payout ratio is 25.24%.

Hedge Funds Weigh In On Ubiquiti

Institutional investors have recently bought and sold shares of the company. Goldman Sachs Group Inc. increased its stake in shares of Ubiquiti by 33.8% during the first quarter. Goldman Sachs Group Inc. now owns 33,836 shares of the company’s stock worth $10,494,000 after acquiring an additional 8,551 shares during the period. Woodline Partners LP lifted its position in Ubiquiti by 22.1% in the first quarter. Woodline Partners LP now owns 1,214 shares of the company’s stock valued at $377,000 after purchasing an additional 220 shares during the period. Jane Street Group LLC boosted its holdings in Ubiquiti by 12.9% in the 1st quarter. Jane Street Group LLC now owns 13,768 shares of the company’s stock valued at $4,270,000 after purchasing an additional 1,570 shares in the last quarter. Cetera Investment Advisers purchased a new stake in Ubiquiti in the 2nd quarter valued at approximately $312,000. Finally, Legal & General Group Plc increased its position in Ubiquiti by 23.2% during the 2nd quarter. Legal & General Group Plc now owns 792 shares of the company’s stock worth $326,000 after purchasing an additional 149 shares during the period. 4.00% of the stock is owned by institutional investors and hedge funds.

About Ubiquiti

Ubiquiti Inc develops and sells networking technology for businesses, service providers and consumers. Its products include wireless access points, routers, gateways, switches, security cameras, access-control systems and network management software.

The company markets its products through several technology platforms and brands, including UniFi for enterprise and small-business networking, and airMAX, LTU and related products for wireless internet service providers. Ubiquiti also offers consumer-focused networking products under the AmpliFi brand and operates software and services designed to help customers manage their networks.

Founded in 2003 by Robert Pera, Ubiquiti serves customers internationally through distributors, online channels and other sales partners.