Ubiquiti Networks (NASDAQ:UBNT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.
According to Zacks, “Ubiquiti is currently experiencing macroeconomic issues like currency risks, rising labor costs in key locations and natural disasters, which pose concerns for the company. The extremely competitive environment, which includes big multinational wireless telecom players, service providers as well as newly established companies, poses a threat to the company. Longer operating histories, greater brand recognition, larger customer bases and significantly greater resources of competitors add to the company’s woes. In addition, the company faces issues with its sales channel and supply chain execution, which affects operations and can directly impact margins. However, 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.”
Several other research analysts have also recently commented on the stock. Vetr upgraded shares of Ubiquiti Networks from a “sell” rating to a “hold” rating and set a $74.74 target price for the company in a report on Monday. BidaskClub upgraded shares of Ubiquiti Networks from a “buy” rating to a “strong-buy” rating in a report on Tuesday, December 19th. ValuEngine cut shares of Ubiquiti Networks from a “buy” rating to a “hold” rating in a report on Thursday, November 16th. BMO Capital Markets reduced their target price 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. 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, four have issued a hold rating, one has given a buy rating and one has issued a strong buy rating to the company. The stock has a consensus rating of “Hold” and a consensus price target of $62.95.
Ubiquiti Networks (NASDAQ:UBNT) last released its quarterly earnings results on Thursday, November 9th. The Wireless communications provider reported $0.92 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.86 by $0.06. The company had revenue of $245.90 million during the quarter, compared to analysts’ expectations of $240.39 million. Ubiquiti Networks had a net margin of 28.76% and a return on equity of 45.45%. The business’s quarterly revenue was up 20.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.79 earnings per share. equities research analysts predict that Ubiquiti Networks will post 3.35 earnings per share for the current fiscal year.
Ubiquiti Networks declared that its Board of Directors has approved a stock buyback program on Thursday, November 9th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the Wireless communications provider to reacquire shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.
A number of institutional investors and hedge funds have recently made changes to their positions in the stock. PNC Financial Services Group Inc. lifted its stake in Ubiquiti Networks by 4.3% in the second quarter. PNC Financial Services Group Inc. now owns 1,958 shares of the Wireless communications provider’s stock valued at $102,000 after acquiring an additional 80 shares during the last quarter. UBS Asset Management Americas Inc. lifted its stake in Ubiquiti Networks by 6.1% in the second quarter. UBS Asset Management Americas Inc. now owns 15,894 shares of the Wireless communications provider’s stock valued at $826,000 after acquiring an additional 916 shares during the last quarter. M&T Bank Corp lifted its stake in Ubiquiti Networks by 18.1% in the second quarter. M&T Bank Corp now owns 6,351 shares of the Wireless communications provider’s stock valued at $330,000 after acquiring an additional 975 shares during the last quarter. Voya Investment Management LLC lifted its stake in Ubiquiti Networks by 8.6% in the second quarter. Voya Investment Management LLC now owns 12,920 shares of the Wireless communications provider’s stock valued at $671,000 after acquiring an additional 1,027 shares during the last quarter. Finally, American International Group Inc. lifted its stake in Ubiquiti Networks by 8.1% in the third quarter. American International Group Inc. now owns 15,508 shares of the Wireless communications provider’s stock valued at $869,000 after acquiring an additional 1,159 shares during the last quarter. Institutional investors and hedge funds own 33.83% 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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