Ubiquiti Networks (UBNT) Stock Price Down 14.1% on Disappointing Earnings

Shares of Ubiquiti Networks Inc (NASDAQ:UBNT) dropped 14.1% on Thursday following a weaker than expected earnings announcement. The stock traded as low as $66.00 and last traded at $67.46. Approximately 1,906,593 shares changed hands during trading, an increase of 407% from the average daily volume of 375,937 shares. The stock had previously closed at $78.50.

The Wireless communications provider reported $0.76 earnings per share for the quarter, missing analysts’ consensus estimates of $0.89 by ($0.13). Ubiquiti Networks had a net margin of 28.76% and a return on equity of 45.45%. The firm had revenue of $250.80 million during the quarter, compared to analysts’ expectations of $239.89 million. During the same quarter last year, the business earned $0.72 earnings per share. The business’s quarterly revenue was up 17.5% on a year-over-year basis.

Ubiquiti Networks declared that its board has authorized a share repurchase plan on Thursday, November 9th that permits the company to repurchase $50.00 million in outstanding shares. This repurchase authorization permits the Wireless communications provider to repurchase shares of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

A number of research firms recently weighed in on UBNT. Zacks Investment Research upgraded shares of Ubiquiti Networks from a “hold” rating to a “buy” rating and set a $82.00 price objective on the stock in a research report on Friday, January 12th. Vetr upgraded shares of Ubiquiti Networks from a “sell” rating to a “hold” rating and set a $74.74 price objective on the stock in a research report on Monday, January 22nd. ValuEngine lowered shares of Ubiquiti Networks from a “buy” rating to a “hold” rating in a research report on Thursday, November 16th. BidaskClub lowered shares of Ubiquiti Networks from a “strong-buy” rating to a “buy” rating in a research report on Saturday, December 2nd. Finally, BMO Capital Markets lowered their price objective on shares of Ubiquiti Networks from $66.00 to $60.00 and set a “positive” rating on the stock in a research report on Friday, November 10th. Two analysts have rated the stock with a sell rating, four have given a hold rating, one has assigned a buy rating and one has issued a strong buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average price target of $62.95.

A number of large investors have recently bought and sold shares of the stock. PNC Financial Services Group Inc. boosted its position in shares of Ubiquiti Networks by 4.3% during the 2nd quarter. PNC Financial Services Group Inc. now owns 1,958 shares of the Wireless communications provider’s stock worth $102,000 after purchasing an additional 80 shares in the last quarter. UBS Asset Management Americas Inc. boosted its position in shares of Ubiquiti Networks by 6.1% during the 2nd quarter. UBS Asset Management Americas Inc. now owns 15,894 shares of the Wireless communications provider’s stock worth $826,000 after purchasing an additional 916 shares in the last quarter. M&T Bank Corp boosted its position in shares of Ubiquiti Networks by 18.1% during the 2nd quarter. M&T Bank Corp now owns 6,351 shares of the Wireless communications provider’s stock worth $330,000 after purchasing an additional 975 shares in the last quarter. Voya Investment Management LLC boosted its position in shares of Ubiquiti Networks by 8.6% during the 2nd quarter. Voya Investment Management LLC now owns 12,920 shares of the Wireless communications provider’s stock worth $671,000 after purchasing an additional 1,027 shares in the last quarter. Finally, American International Group Inc. boosted its position in shares of Ubiquiti Networks by 8.1% during the 3rd quarter. American International Group Inc. now owns 15,508 shares of the Wireless communications provider’s stock worth $869,000 after purchasing an additional 1,159 shares in the last quarter. Hedge funds and other institutional investors own 33.48% of the company’s stock.

The company has a market cap of $6,131.62, a PE ratio of 21.42, a P/E/G ratio of 1.34 and a beta of 0.58.

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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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