Zacks Investment Research upgraded shares of Ubiquiti Networks (NASDAQ:UBNT) from a hold rating to a buy rating in a report published on Friday. The brokerage currently has $82.00 price target on the Wireless communications provider’s stock.
According to Zacks, “Ubiquiti is experiencing impressive momentum in the UniFi product family recently. Ubiquiti’s excellent global business model, which is highly flexible and adaptable to any kind of change in markets, has helped it steer past challenges and maximize growth. Over the past few quarters both of Ubiquiti’s business segments are experiencing solid prospects, which, in turn, have stoked its top line. Especially, the Enterprise Technology business is expected to grab a higher market share for the rest of the fiscal year, fuelled by strong demand for its products. Going forward, the company believes traction of the recently launched products will drive top-line growth. The company’s shares have charted an impressive trajectory in the past six months, outperforming the industry's gain. However, macroeconomic problems like currency risks, rising labor costs in key locations and natural disasters pose concerns for the company.”
A number of other research analysts also recently weighed in on UBNT. JMP Securities reissued a market perform rating on shares of Ubiquiti Networks in a research note on Wednesday, September 27th. Vetr downgraded Ubiquiti Networks from a strong-buy rating to a buy rating and set a $62.28 price target on the stock. in a research note on Wednesday, October 4th. BMO Capital Markets cut their price target on Ubiquiti Networks from $66.00 to $60.00 and set a positive rating on the stock in a research note on Friday, November 10th. ValuEngine raised Ubiquiti Networks from a hold rating to a buy rating in a research note on Friday, November 10th. Finally, BidaskClub downgraded Ubiquiti Networks from a strong-buy rating to a buy rating in a research note on Saturday, December 2nd. Two investment analysts have rated the stock with a sell rating, four have given a hold rating, one has issued a buy rating and one has given a strong buy rating to the company. The company currently has a consensus rating of Hold and an average target price of $62.21.
Ubiquiti Networks (NASDAQ:UBNT) last posted its quarterly earnings results on Thursday, November 9th. The Wireless communications provider reported $0.92 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.86 by $0.06. The company had revenue of $245.90 million for the quarter, compared to the consensus estimate of $240.39 million. Ubiquiti Networks had a return on equity of 45.45% and a net margin of 28.76%. The firm’s quarterly revenue was up 20.1% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.79 EPS. equities research analysts anticipate that Ubiquiti Networks will post 3.35 earnings per share for the current year.
Ubiquiti Networks announced that its Board of Directors has approved a stock buyback program on Monday, September 18th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the Wireless communications provider to buy up to 2.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its stock is undervalued.
A number of institutional investors have recently modified their holdings of UBNT. Schwab Charles Investment Management Inc. raised its stake in Ubiquiti Networks by 5.4% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 142,522 shares of the Wireless communications provider’s stock worth $7,407,000 after buying an additional 7,334 shares during the period. SG Americas Securities LLC acquired a new stake in Ubiquiti Networks during the 2nd quarter worth $144,000. Bank of New York Mellon Corp raised its stake in Ubiquiti Networks by 1.0% during the 2nd quarter. Bank of New York Mellon Corp now owns 154,884 shares of the Wireless communications provider’s stock worth $8,049,000 after buying an additional 1,482 shares during the period. BNP Paribas Arbitrage SA raised its stake in Ubiquiti Networks by 138.8% during the 2nd quarter. BNP Paribas Arbitrage SA now owns 4,198 shares of the Wireless communications provider’s stock worth $218,000 after buying an additional 2,440 shares during the period. Finally, Pacer Advisors Inc. raised its stake in Ubiquiti Networks by 11.8% during the 2nd quarter. Pacer Advisors Inc. now owns 3,019 shares of the Wireless communications provider’s stock worth $157,000 after buying an additional 319 shares during the period. 33.80% of the stock is currently owned by institutional investors and hedge funds.
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Ubiquiti Networks Company Profile
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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