Ubiquiti Networks (NASDAQ:UBNT) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Thursday.
According to Zacks, “Ubiquiti’s second-quarter fiscal 2018 earnings missed the Zacks Consensus Estimate by 6.2%, but rose 5.6% year over year. Revenues also rose 17.2% over the prior-year quarter, driven by impressive momentum in the UniFi product family. Ubiquiti’s shares have charted an impressive trajectory in the past year, outperforming the industry's average gain. Going forward, the company believes traction of the recently launched products will drive top-line growth. However, 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’s operating expenses have been climbing steeply and can directly impact margins.”
A number of other equities analysts have also recently issued reports on the company. ValuEngine cut Ubiquiti Networks from a “buy” rating to a “hold” rating in a report on Thursday, November 16th. BMO Capital Markets lowered their target price on Ubiquiti Networks from $66.00 to $60.00 and set a “positive” rating for the company in a report on Friday, November 10th. BidaskClub raised Ubiquiti Networks from a “buy” rating to a “strong-buy” rating in a report on Tuesday, December 19th. Vetr cut Ubiquiti Networks from a “hold” rating to a “sell” rating and set a $71.07 target price for the company. in a report on Thursday, January 4th. Finally, TheStreet cut Ubiquiti Networks from an “a” rating to a “c+” rating in a report on Friday, February 9th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating, one has issued a buy rating and one has issued a strong buy rating to the company. Ubiquiti Networks has a consensus rating of “Hold” and an average target price of $65.75.
Ubiquiti Networks (NASDAQ:UBNT) last announced its quarterly earnings data on Thursday, February 8th. The Wireless communications provider reported $0.76 earnings per share for the quarter, topping the consensus estimate of $0.70 by $0.06. Ubiquiti Networks had a return on equity of 47.42% and a net margin of 15.73%. The business had revenue of $250.80 million during the quarter, compared to the consensus estimate of $239.89 million. During the same period in the prior year, the company earned $0.72 EPS. Ubiquiti Networks’s revenue for the quarter was up 17.5% on a year-over-year basis. analysts anticipate that Ubiquiti Networks will post 3.08 EPS for the current year.
Ubiquiti Networks announced that its Board of Directors has authorized a stock repurchase plan on Thursday, November 9th that authorizes the company to repurchase $50.00 million in shares. This repurchase authorization authorizes the Wireless communications provider to buy shares of its stock through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.
Several hedge funds have recently modified their holdings of the company. Jackson Square Partners LLC increased its stake in shares of Ubiquiti Networks by 21.1% in the third 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. Hunt Lane Capital LP increased its stake in shares of Ubiquiti Networks by 10.9% in the fourth quarter. Hunt Lane Capital LP now owns 698,544 shares of the Wireless communications provider’s stock valued at $49,611,000 after buying an additional 68,544 shares during the period. Anchor Capital Advisors LLC acquired a new stake in shares of Ubiquiti Networks in the third quarter valued at about $20,244,000. Sei Investments Co. increased its stake in shares of Ubiquiti Networks by 18.5% in the third quarter. Sei Investments Co. now owns 312,994 shares of the Wireless communications provider’s stock valued at $17,534,000 after buying an additional 48,918 shares during the period. Finally, Macquarie Group Ltd. increased its stake in shares of Ubiquiti Networks by 15.7% in the third quarter. Macquarie Group Ltd. now owns 255,750 shares of the Wireless communications provider’s stock valued at $14,327,000 after buying an additional 34,625 shares during the period. 33.33% of the stock is owned by institutional investors.
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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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