Ubiquiti Networks (NASDAQ:UBNT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Friday. The brokerage presently has a $82.00 price target on the Wireless communications provider’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 11.32% from the company’s previous close.
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.”
Other research analysts have also issued reports about the stock. BMO Capital Markets decreased their price objective on shares of Ubiquiti Networks from $66.00 to $60.00 and set a “positive” rating for the company in a report on Friday, November 10th. Vetr lowered shares of Ubiquiti Networks from a “strong-buy” rating to a “buy” rating and set a $62.28 price objective for the company. in a report on Wednesday, October 4th. ValuEngine upgraded shares of Ubiquiti Networks from a “hold” rating to a “buy” rating in a report on Friday, November 10th. BidaskClub lowered shares of Ubiquiti Networks from a “strong-buy” rating to a “buy” rating in a report on Saturday, December 2nd. Finally, JMP Securities restated a “market perform” rating on shares of Ubiquiti Networks in a report on Wednesday, September 27th. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating, two have assigned a buy rating and one has given a strong buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus price target of $62.21.
Ubiquiti Networks (NASDAQ:UBNT) last issued its quarterly earnings data 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 net margin of 30.47% and a return on equity of 51.68%. The business had revenue of $245.90 million during the quarter, compared to analyst estimates of $240.39 million. During the same period in the prior year, the business earned $0.79 EPS. The company’s revenue for the quarter was up 20.1% on a year-over-year basis. equities analysts expect that Ubiquiti Networks will post 3.35 EPS for the current year.
Ubiquiti Networks announced that its board has authorized a share buyback program on Monday, September 18th that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the Wireless communications provider to repurchase up to 2.5% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board of directors believes its shares are undervalued.
Several large investors have recently added to or reduced their stakes in UBNT. Schwab Charles Investment Management Inc. grew its position in shares of Ubiquiti Networks by 5.4% in 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 purchased a new stake in shares of Ubiquiti Networks in the 2nd quarter worth about $144,000. Bank of New York Mellon Corp grew its position in shares of Ubiquiti Networks by 1.0% in 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 grew its position in shares of Ubiquiti Networks by 138.8% in 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. grew its position in shares of Ubiquiti Networks by 11.8% in 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 hedge funds and other institutional investors.
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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