Ubiquiti (NYSE:UI) Shares Gap Up on Strong Earnings

Ubiquiti Inc. (NYSE:UI)’s stock price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $514.20, but opened at $573.07. Ubiquiti shares last traded at $590.3070, with a volume of 22,002 shares.

The company reported $5.32 EPS for the quarter, beating analysts’ consensus estimates of $4.25 by $1.07. Ubiquiti had a net margin of 29.33% and a return on equity of 85.57%. The business had revenue of $1.03 billion during the quarter, compared to analyst estimates of $977.45 million.

Analysts Set New Price Targets

Several analysts have issued reports on the company. Zacks Research upgraded Ubiquiti from a “hold” rating to a “strong-buy” rating in a research note on Friday, September 18th. Barclays decreased their price objective on Ubiquiti from $672.00 to $489.00 and set an “underweight” rating for the company in a report on Monday, August 24th. BWS Financial reissued a “buy” rating and issued a $980.00 price objective on shares of Ubiquiti in a report on Tuesday, September 29th. Finally, Weiss Ratings cut Ubiquiti from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, October 30th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $734.50.

Institutional Trading of Ubiquiti

Institutional investors and hedge funds have recently bought and sold shares of the company. Valeo Financial Advisors LLC grew its position in shares of Ubiquiti by 1.7% during the 3rd quarter. Valeo Financial Advisors LLC now owns 1,076 shares of the company’s stock valued at $611,000 after purchasing an additional 18 shares in the last quarter. Greenleaf Trust raised its position in shares of Ubiquiti by 4.3% in the third quarter. Greenleaf Trust now owns 504 shares of the company’s stock worth $286,000 after buying an additional 21 shares in the last quarter. Fortitude Family Office LLC raised its position in shares of Ubiquiti by 109.5% in the third quarter. Fortitude Family Office LLC now owns 44 shares of the company’s stock worth $25,000 after buying an additional 23 shares in the last quarter. Choreo LLC boosted its stake in Ubiquiti by 2.8% during the third quarter. Choreo LLC now owns 880 shares of the company’s stock valued at $500,000 after buying an additional 24 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its stake in Ubiquiti by 20.8% during the first quarter. EverSource Wealth Advisors LLC now owns 145 shares of the company’s stock valued at $115,000 after buying an additional 25 shares during the period. 4.00% of the stock is currently owned by hedge funds and other institutional investors.

Ubiquiti Price Performance

The company has a 50 day moving average of $586.66 and a 200-day moving average of $657.03. The company has a market cap of $35.66 billion, a P/E ratio of 37.18 and a beta of 1.34.

Ubiquiti Company Profile

Ubiquiti Inc develops and sells networking technology for businesses, service providers and consumers worldwide. The company’s products are designed to provide wireless connectivity, routing, switching, network management and related communications capabilities.

Ubiquiti’s product portfolio includes the UniFi platform for enterprise and small-business networks, with products such as wireless access points, switches, gateways, security cameras and access-control systems. It also offers solutions for wireless internet service providers and other network operators through its UISP and related product lines, as well as consumer-oriented connectivity products under brands including AmpliFi.

Founded in 2005 by Robert Pera, Ubiquiti distributes its products internationally through distributors, online channels and other sales partners.