Ubiquiti Networks (UBNT) Rating Lowered to Hold at Zacks Investment Research

Ubiquiti Networks (NASDAQ:UBNT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Monday.

According to Zacks, “Ubiquiti is enjoying impressive momentum in the UniFi product family, which has contributed strongly to top-line growth in recent times. The company’s shares have charted an impressive trajectory in the past six months, outperforming the industry's gain. Going forward, the company believes traction of the recently launched products will drive top-line growth. Ubiquiti expects its Enterprise Technology business to grab a higher market share in the rest of the fiscal year, fuelled by strong demand for its products. However, on the flip side, 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. The company also faces issues with its sales channel and supply chain execution, which affects operations and can directly impact margins.”

Several other equities analysts have also recently issued reports on UBNT. Vetr cut shares of Ubiquiti Networks from a “hold” rating to a “sell” rating and set a $71.07 target price for the company. in a research note on Thursday, January 4th. JMP Securities reiterated a “market perform” rating on shares of Ubiquiti Networks in a research note on Wednesday, September 27th. BidaskClub cut shares of Ubiquiti Networks from a “strong-buy” rating to a “buy” rating in a research note on Saturday, December 2nd. ValuEngine upgraded shares of Ubiquiti Networks from a “hold” rating to a “buy” rating in a research note on Friday, November 10th. Finally, BMO Capital Markets decreased their target price on shares of Ubiquiti Networks from $66.00 to $60.00 and set a “positive” rating for the company in a research note on Friday, November 10th. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating, one has issued a buy rating and one has given a strong buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus target price of $62.21.

Shares of Ubiquiti Networks (UBNT) traded up $0.31 during midday trading on Monday, reaching $74.31. 16,434 shares of the company’s stock traded hands, compared to its average volume of 268,800. Ubiquiti Networks has a twelve month low of $45.71 and a twelve month high of $76.93. The firm has a market cap of $5,750.00, a PE ratio of 23.59, a price-to-earnings-growth ratio of 1.15 and a beta of 0.51.

Ubiquiti Networks (NASDAQ:UBNT) last announced its quarterly earnings data on Thursday, November 9th. The Wireless communications provider reported $0.92 EPS for the quarter, beating the consensus estimate of $0.86 by $0.06. Ubiquiti Networks had a net margin of 28.76% and a return on equity of 45.45%. The business had revenue of $245.90 million during the quarter, compared to analysts’ expectations of $240.39 million. During the same period in the previous year, the business posted $0.79 EPS. The business’s quarterly revenue was up 20.1% compared to the same quarter last year. sell-side analysts forecast that Ubiquiti Networks will post 3.35 earnings per share for the current year.

Ubiquiti Networks declared that its board has initiated a stock repurchase plan on Thursday, November 9th that permits the company to repurchase $50.00 million in 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.

Several institutional investors and hedge funds have recently bought and sold shares of the stock. California Public Employees Retirement System lifted its stake in shares of Ubiquiti Networks by 5.3% in the 3rd quarter. California Public Employees Retirement System now owns 90,460 shares of the Wireless communications provider’s stock valued at $5,068,000 after purchasing an additional 4,560 shares during the period. Janney Montgomery Scott LLC purchased a new stake in Ubiquiti Networks in the 3rd quarter worth $1,046,000. Jackson Square Partners LLC increased its holdings in Ubiquiti Networks by 21.1% in the 3rd quarter. Jackson Square Partners LLC now owns 1,316,083 shares of the Wireless communications provider’s stock worth $73,726,000 after acquiring an additional 228,986 shares in the last quarter. Engineers Gate Manager LP purchased a new stake in Ubiquiti Networks in the 3rd quarter worth $1,271,000. Finally, Envestnet Asset Management Inc. increased its holdings in Ubiquiti Networks by 8,033.0% in the 3rd quarter. Envestnet Asset Management Inc. now owns 16,998 shares of the Wireless communications provider’s stock worth $953,000 after acquiring an additional 16,789 shares in the last quarter. Hedge funds and other institutional investors own 33.80% of the company’s stock.

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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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