Ubiquiti Networks Inc. (UBNT) Cut to “Hold” at Zacks Investment Research
Ubiquiti Networks Inc. (NASDAQ:UBNT) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Thursday.
According to Zacks, “Ubiquiti has had an impeccable earnings surprise history in the last four trailing quarters, having beaten estimates strongly all through. Successful product launches, coupled with impressive performance from the Enterprise Technology segment, have boosted the company’s operations. Also, strong performance of UniFi AC access points and other products is driving sales growth for the company. The company’s competitively priced network and proprietary network communication platform have been driving significant demand for its products. However, macroeconomic problems like currency risks, rising labor costs in China and intensifying competition remain concerns.Also, risks related to intellectual property rights are very high for the company, particularly in some key markets including South America and China, which may pose as headwinds in the future. Moreover, stringent government legislations add to Ubiquiti’s woes.”
UBNT has been the topic of a number of other reports. Morgan Stanley set a $28.00 price target on shares of Ubiquiti Networks and gave the company a “sell” rating in a report on Friday, August 5th. Wunderlich raised their price target on shares of Ubiquiti Networks from $48.00 to $55.00 and gave the company a “buy” rating in a report on Friday, August 5th. Finally, Deutsche Bank AG set a $31.00 price target on shares of Ubiquiti Networks and gave the company a “hold” rating in a report on Friday, August 5th. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and one has issued a buy rating to the company. Ubiquiti Networks currently has an average rating of “Hold” and a consensus target price of $37.11.
Ubiquiti Networks (NASDAQ:UBNT) opened at 53.79 on Thursday. Ubiquiti Networks has a 12 month low of $25.75 and a 12 month high of $54.73. The company’s 50-day moving average is $52.51 and its 200-day moving average is $42.22. The stock has a market capitalization of $4.40 billion, a PE ratio of 21.60 and a beta of 1.32.
Ubiquiti Networks (NASDAQ:UBNT) last issued its earnings results on Thursday, August 4th. The company reported $0.69 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.64 by $0.05. Ubiquiti Networks had a net margin of 32.06% and a return on equity of 47.65%. The company had revenue of $185.70 million for the quarter, compared to analysts’ expectations of $174.47 million. During the same period in the prior year, the business earned $0.50 EPS. The firm’s quarterly revenue was up 27.8% on a year-over-year basis. Equities research analysts forecast that Ubiquiti Networks will post $2.78 EPS for the current year.
In other Ubiquiti Networks news, VP Benjamin Moore sold 150,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 15th. The shares were sold at an average price of $51.20, for a total transaction of $7,680,000.00. Following the completion of the transaction, the vice president now directly owns 758 shares of the company’s stock, valued at approximately $38,809.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 69.08% of the company’s stock.
Institutional investors have recently bought and sold shares of the company. UBS Asset Management Americas Inc. raised its position in Ubiquiti Networks by 2.1% in the second quarter. UBS Asset Management Americas Inc. now owns 19,800 shares of the company’s stock worth $765,000 after buying an additional 400 shares in the last quarter. AQR Capital Management LLC raised its position in Ubiquiti Networks by 0.5% in the second quarter. AQR Capital Management LLC now owns 97,443 shares of the company’s stock worth $3,767,000 after buying an additional 455 shares in the last quarter. Teacher Retirement System of Texas raised its position in Ubiquiti Networks by 13.8% in the second quarter. Teacher Retirement System of Texas now owns 4,140 shares of the company’s stock worth $160,000 after buying an additional 501 shares in the last quarter. Bayesian Capital Management LP raised its position in Ubiquiti Networks by 8.1% in the first quarter. Bayesian Capital Management LP now owns 9,300 shares of the company’s stock worth $309,000 after buying an additional 700 shares in the last quarter. Finally, California Public Employees Retirement System raised its position in Ubiquiti Networks by 1.1% in the second quarter. California Public Employees Retirement System now owns 73,200 shares of the company’s stock worth $2,830,000 after buying an additional 800 shares in the last quarter. 30.22% of the stock is owned by institutional investors.
Ubiquiti Networks Company Profile
Ubiquiti Networks, Inc, develops high performance networking technology for service providers and enterprises. The Company’s technology platforms for service providers enable carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing. The Company’s technology platforms for enterprises enable wireless local area network (WLAN) infrastructure, video surveillance products, and machine-to-machine communications.
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