Ubiquiti (NYSE:UI) Trading Down 5.4% – Here’s Why

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

Wall Street Analyst Weigh In

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

Ubiquiti Price Performance

The stock’s 50-day moving average price is $558.84 and its 200-day moving average price is $683.98. The company has a market cap of $30.98 billion, a P/E ratio of 32.10 and a beta of 1.31.

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

Ubiquiti Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Stockholders 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 0.8%. The ex-dividend date of this dividend was Monday, August 31st. Ubiquiti’s payout ratio is 25.24%.

Institutional Investors Weigh In On Ubiquiti

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Engineers Gate Manager LP bought a new stake in shares of Ubiquiti in the second quarter valued at approximately $2,006,000. IFP Advisors Inc increased its stake in Ubiquiti by 125.5% during the 2nd quarter. IFP Advisors Inc now owns 442 shares of the company’s stock worth $236,000 after acquiring an additional 246 shares during the period. Corient Private Wealth LP increased its stake in Ubiquiti by 11.1% during the 2nd quarter. Corient Private Wealth LP now owns 5,819 shares of the company’s stock worth $3,108,000 after acquiring an additional 583 shares during the period. Amundi raised its holdings in Ubiquiti by 88.5% in the 2nd quarter. Amundi now owns 2,155 shares of the company’s stock valued at $1,151,000 after acquiring an additional 1,012 shares in the last quarter. Finally, California State Teachers Retirement System raised its holdings in Ubiquiti by 13,771.0% in the 2nd quarter. California State Teachers Retirement System now owns 32,042 shares of the company’s stock valued at $17,111,000 after acquiring an additional 31,811 shares in the last quarter. 4.00% of the stock is currently owned by institutional investors and hedge funds.

About Ubiquiti

Ubiquiti Inc (NYSE:UI) develops and sells networking technology for businesses, internet service providers and consumers. Its products are designed to provide wireless and wired connectivity, network management, security and other communications capabilities, with an emphasis on scalable systems that can be deployed across homes, offices, campuses and service-provider networks.

The company’s principal product platforms include UniFi, which offers Wi-Fi access points, switches, gateways, security cameras, access-control systems and network-management software; and UISP, which supports internet service providers with wireless broadband, fiber and network infrastructure products.