Ubiquiti (NYSE:UI) Stock Price Up 8.4% on Strong Earnings

Ubiquiti Inc. (NYSE:UI) shares rose 8.4% during mid-day trading on Monday following a stronger than expected earnings report. The stock traded as high as $671.32 and last traded at $674.5940. Approximately 40,288 shares changed hands during trading, a decline of 63% from the average daily volume of 108,703 shares. The stock had previously closed at $622.33.

The company reported $3.88 EPS for the quarter, beating analysts’ consensus estimates of $3.08 by $0.80. The company had revenue of $814.87 million for the quarter, compared to analysts’ expectations of $716.95 million. Ubiquiti had a net margin of 29.90% and a return on equity of 129.52%. Ubiquiti’s revenue for the quarter was up 35.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.28 earnings per share.

Ubiquiti Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, February 23rd. Shareholders of record on Tuesday, February 17th will be given a $0.80 dividend. The ex-dividend date of this dividend is Tuesday, February 17th. This represents a $3.20 dividend on an annualized basis and a yield of 0.5%. Ubiquiti’s payout ratio is presently 21.80%.

Wall Street Analysts Forecast Growth

UI has been the subject of a number of research reports. Wall Street Zen raised Ubiquiti from a “hold” rating to a “buy” rating in a research note on Saturday. Barclays raised their target price on Ubiquiti from $455.00 to $527.00 and gave the company an “underweight” rating in a report on Friday. Zacks Research upgraded shares of Ubiquiti from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, December 3rd. Weiss Ratings reissued a “hold (c+)” rating on shares of Ubiquiti in a research note on Monday, December 29th. Finally, BWS Financial restated a “buy” rating and issued a $720.00 price objective on shares of Ubiquiti in a report on Thursday, January 15th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $615.67.

Insider Buying and Selling

In related news, CAO Kevin Radigan sold 350 shares of Ubiquiti stock in a transaction on Wednesday, November 12th. The shares were sold at an average price of $576.58, for a total transaction of $201,803.00. Following the sale, the chief accounting officer directly owned 2,768 shares in the company, valued at $1,595,973.44. This trade represents a 11.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 93.10% of the stock is owned by corporate insiders.

Institutional Trading of Ubiquiti

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Arrowstreet Capital Limited Partnership increased its position in Ubiquiti by 47.4% during the third quarter. Arrowstreet Capital Limited Partnership now owns 163,960 shares of the company’s stock worth $108,309,000 after buying an additional 52,744 shares during the period. Wealth Enhancement Advisory Services LLC increased its holdings in shares of Ubiquiti by 244.3% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 155,916 shares of the company’s stock valued at $88,815,000 after acquiring an additional 110,632 shares during the period. Pacer Advisors Inc. increased its holdings in shares of Ubiquiti by 40.3% in the 3rd quarter. Pacer Advisors Inc. now owns 105,858 shares of the company’s stock valued at $69,928,000 after acquiring an additional 30,420 shares during the period. M&T Bank Corp raised its position in Ubiquiti by 7,845.7% in the 4th quarter. M&T Bank Corp now owns 98,527 shares of the company’s stock valued at $54,520,000 after purchasing an additional 97,287 shares during the last quarter. Finally, Vanguard Group Inc. boosted its stake in Ubiquiti by 1.4% during the 4th quarter. Vanguard Group Inc. now owns 96,943 shares of the company’s stock worth $53,643,000 after purchasing an additional 1,382 shares during the period. Institutional investors and hedge funds own 4.00% of the company’s stock.

Ubiquiti Stock Up 7.5%

The stock has a fifty day moving average price of $563.82 and a 200-day moving average price of $580.99. The firm has a market cap of $40.48 billion, a price-to-earnings ratio of 45.68 and a beta of 1.40.

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.