Ubiquiti (NYSE:UI) Shares Up 8.4% After Earnings Beat

Ubiquiti Inc. (NYSE:UI) shot up 8.4% during trading on Monday after the company announced better than expected quarterly earnings. The stock traded as high as $671.32 and last traded at $674.5940. 40,288 shares were traded during mid-day trading, a decline of 63% from the average session volume of 108,703 shares. The stock had previously closed at $622.33.

The company reported $3.88 EPS for the quarter, topping the consensus estimate of $3.08 by $0.80. The business had revenue of $814.87 million for the quarter, compared to analyst estimates of $716.95 million. Ubiquiti had a return on equity of 129.52% and a net margin of 29.90%.The company’s quarterly revenue was up 35.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.28 EPS.

Ubiquiti Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, February 23rd. Stockholders 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 dividend yield of 0.5%. Ubiquiti’s payout ratio is currently 21.80%.

Wall Street Analysts Forecast Growth

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

Insider Transactions at Ubiquiti

In other Ubiquiti 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 value of $201,803.00. Following the completion of the transaction, the chief accounting officer owned 2,768 shares of the company’s stock, valued at $1,595,973.44. The trade was a 11.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. 93.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Ubiquiti

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

Ubiquiti Price Performance

The firm’s 50 day moving average price is $563.82 and its 200-day moving average price is $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.

Ubiquiti Company Profile

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.