Zacks Investment Research downgraded shares of Ubiquiti Networks (NASDAQ:UBNT) from a buy rating to a hold rating in a research report sent to investors on Thursday, November 16th.
According to Zacks, “Ubiquiti’s first-quarter fiscal 2018 earnings beat the Zacks Consensus Estimate by 16.5%. The company saw impressive momentum in the UniFi product family which drove top-line growth and earnings. Ubiquiti’s shares have charted an impressive trajectory in the past six months, outperforming the industry's gain. Going forward, the company believes traction of the recently launched products will drive top-line growth. However, on the flip side, macroeconomic problems like currency risks, rising labor costs in key locations and natural disasters pose concerns for the company. Also, an extremely competitive environment, which includes big multinational wireless telecom players, poses a threat to the company. In addition, the company faces issues with its sales channel and supply chain execution, which affects operations and can directly impact margins.”
Several other brokerages have also issued reports on UBNT. Deutsche Bank lifted their price target on Ubiquiti Networks from $40.00 to $44.00 and gave the stock a hold rating in a research note on Monday, August 7th. Credit Suisse Group reissued a sell rating and issued a $54.00 target price on shares of Ubiquiti Networks in a research note on Friday, August 4th. BidaskClub raised Ubiquiti Networks from a buy rating to a strong-buy rating in a research report on Tuesday, August 8th. ValuEngine lowered Ubiquiti Networks from a buy rating to a hold rating in a research report on Thursday, August 3rd. Finally, BMO Capital Markets lowered their price target on Ubiquiti Networks from $66.00 to $60.00 and set a positive rating for the company in a research report on Friday, November 10th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and three have assigned a buy rating to the company’s stock. The stock has a consensus rating of Hold and an average price target of $56.86.
Shares of Ubiquiti Networks (NASDAQ:UBNT) traded down $0.73 during midday trading on Thursday, hitting $66.11. The stock had a trading volume of 316,075 shares, compared to its average volume of 612,045. Ubiquiti Networks has a one year low of $45.71 and a one year high of $68.14. The stock has a market capitalization of $5,202.96, a PE ratio of 21.29, a PEG ratio of 1.05 and a beta of 0.51.
Ubiquiti Networks (NASDAQ:UBNT) last posted its earnings results on Thursday, November 9th. The Wireless communications provider reported $0.92 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.86 by $0.06. Ubiquiti Networks had a return on equity of 45.45% and a net margin of 28.76%. The business had revenue of $245.90 million during the quarter, compared to analysts’ expectations of $240.39 million. During the same period in the previous year, the business earned $0.79 earnings per share. The firm’s revenue was up 20.1% on a year-over-year basis. equities analysts anticipate that Ubiquiti Networks will post 3.35 EPS for the current fiscal year.
Ubiquiti Networks announced that its board has authorized a stock repurchase program on Tuesday, September 5th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the Wireless communications provider to reacquire up to 18% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.
Several institutional investors have recently bought and sold shares of UBNT. EdgePoint Investment Group Inc. boosted its stake in Ubiquiti Networks by 10.0% during the 2nd quarter. EdgePoint Investment Group Inc. now owns 6,325,182 shares of the Wireless communications provider’s stock valued at $328,720,000 after purchasing an additional 575,640 shares during the last quarter. Vanguard Group Inc. boosted its stake in Ubiquiti Networks by 4.5% during the 1st quarter. Vanguard Group Inc. now owns 2,001,643 shares of the Wireless communications provider’s stock valued at $100,601,000 after purchasing an additional 86,845 shares during the last quarter. BlackRock Inc. lifted its holdings in shares of Ubiquiti Networks by 11,607.1% during the 1st quarter. BlackRock Inc. now owns 1,965,976 shares of the Wireless communications provider’s stock valued at $98,810,000 after buying an additional 1,949,183 shares during the period. Disciplined Growth Investors Inc. MN lifted its holdings in shares of Ubiquiti Networks by 34.4% during the 2nd quarter. Disciplined Growth Investors Inc. MN now owns 1,616,027 shares of the Wireless communications provider’s stock valued at $83,985,000 after buying an additional 413,560 shares during the period. Finally, Jackson Square Partners LLC lifted its holdings in shares of Ubiquiti Networks by 21.1% during the 3rd quarter. Jackson Square Partners LLC now owns 1,316,083 shares of the Wireless communications provider’s stock valued at $73,726,000 after buying an additional 228,986 shares during the period. Institutional investors own 33.83% of the company’s stock.
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About Ubiquiti Networks
Ubiquiti Networks, Inc develops performance networking technology for service providers and enterprises. The Company offers a portfolio of networking products and solutions. Its service provider product platforms provide carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing.
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