Zacks Investment Research Lowers Ubiquiti Networks (UBNT) to Hold

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Zacks Investment Research cut shares of Ubiquiti Networks (NASDAQ:UBNT) from a buy rating to a hold rating in a research report released on Friday morning.

According to Zacks, “Ubiquiti boasts a competitively priced and proprietary network communication platform that is well equipped to meet end-market customer needs. The company remains committed toward reducing operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information. Disruptive pricing and higher average selling prices of products should continue to drive revenues. The stock has also outperformed the industry in the past year on average. However, potential impact of tariffs imposed on certain imported products from China remains a cause of concern. Longer operating histories, greater brand recognition, larger customer bases and significantly greater resources of competitors add to the company’s woes. Substantial investments in research and development efforts will further dent Ubiquiti’s margins in the short term. Exposure to intellectual property-related risks remains anothern concern for Ubiquiti.”

Other research analysts have also issued reports about the company. BidaskClub lowered Ubiquiti Networks from a strong-buy rating to a buy rating in a research report on Saturday, December 22nd. Credit Suisse Group set a $86.00 price objective on Ubiquiti Networks and gave the stock a hold rating in a research report on Wednesday, January 16th. JMP Securities reissued a hold rating on shares of Ubiquiti Networks in a research report on Tuesday, November 13th. BMO Capital Markets lifted their price objective on Ubiquiti Networks to $99.00 and gave the stock a market perform rating in a research report on Monday, November 12th. Finally, Bank of America lifted their price objective on Ubiquiti Networks from $52.50 to $62.00 and gave the stock an underperform rating in a research report on Monday, October 29th. One analyst has rated the stock with a sell rating, five have given a hold rating, one has given a buy rating and one has issued a strong buy rating to the company. The company currently has an average rating of Hold and a consensus target price of $96.60.

UBNT stock opened at $128.99 on Friday. Ubiquiti Networks has a 1-year low of $49.40 and a 1-year high of $130.52. The company has a debt-to-equity ratio of 1.68, a current ratio of 6.12 and a quick ratio of 5.20. The stock has a market capitalization of $8.82 billion, a PE ratio of 35.24, a price-to-earnings-growth ratio of 2.40 and a beta of 1.04.

Ubiquiti Networks (NASDAQ:UBNT) last posted its quarterly earnings data on Friday, February 8th. The Wireless communications provider reported $1.33 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.03 by $0.30. Ubiquiti Networks had a return on equity of 113.64% and a net margin of 30.29%. The firm had revenue of $307.28 million during the quarter, compared to analyst estimates of $276.44 million. During the same period last year, the company posted $0.76 EPS. The business’s quarterly revenue was up 22.5% on a year-over-year basis. Analysts expect that Ubiquiti Networks will post 3.69 earnings per share for the current year.

The company also recently announced a quarterly dividend, which will be paid on Monday, February 25th. Stockholders of record on Monday, February 18th will be paid a $0.25 dividend. The ex-dividend date is Thursday, February 14th. This represents a $1.00 annualized dividend and a dividend yield of 0.78%. Ubiquiti Networks’s dividend payout ratio is presently 27.32%.

In other news, Director Ronald Sege sold 6,250 shares of the firm’s stock in a transaction dated Wednesday, November 28th. The stock was sold at an average price of $110.19, for a total value of $688,687.50. Following the completion of the sale, the director now directly owns 6,250 shares in the company, valued at approximately $688,687.50. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 78.70% of the company’s stock.

Institutional investors and hedge funds have recently modified their holdings of the company. Enlightenment Research LLC acquired a new stake in shares of Ubiquiti Networks in the 4th quarter valued at about $80,000. Bremer Trust National Association acquired a new stake in shares of Ubiquiti Networks in the 4th quarter valued at about $80,000. WealthTrust Fairport LLC acquired a new stake in shares of Ubiquiti Networks in the 3rd quarter valued at about $117,000. Strs Ohio acquired a new stake in shares of Ubiquiti Networks in the 4th quarter valued at about $175,000. Finally, Meeder Asset Management Inc. acquired a new stake in shares of Ubiquiti Networks in the 4th quarter valued at about $176,000. Institutional investors own 24.26% of the company’s stock.

About Ubiquiti Networks

Ubiquiti Networks, Inc develops networking technology for service providers, enterprises, and consumers. It focuses on three principal technologies, including high-capacity distributed Internet access, unified information technology, and consumer electronics for home and personal use. The company's service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, and other WLAN products, as well as offers consumer products under the Ubiquiti Labs brand name.

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