Zacks Investment Research Downgrades Ubiquiti Networks (UBNT) to Hold

Zacks Investment Research cut shares of Ubiquiti Networks (NASDAQ:UBNT) from a buy rating to a hold rating in a report published on Monday.

According to Zacks, “Ubiquiti reported solid second-quarter fiscal 2019 results wherein both the bottom line and the top line surpassed the respective Zacks Consensus Estimate, and increased year over year. The company boasts a proprietary network communication platform that is well-equipped to meet end-market customer needs. It remains committed toward reducing operational costs by using a self-sustaining mechanism for rapid product support. Ubiquiti is witnessing impressive growth momentum in the UniFi product family in recent times. The stock has outperformed the industry over the past year on an average. However, potential impact of tariffs imposed on certain products imported into the United States from China remains a cause of concern. Ubiquiti is exposed to geopolitical instability on account of its geographically diverse scale of operations. The company operates in an extremely price-competitive environment which includes telecom service providers.”

A number of other equities research analysts have also recently issued reports on the stock. Bank of America lifted their price target on shares of Ubiquiti Networks from $52.50 to $62.00 and gave the company an underperform rating in a research note on Monday, October 29th. BidaskClub raised shares of Ubiquiti Networks from a buy rating to a strong-buy rating in a research note on Friday, November 2nd. Credit Suisse Group set a $86.00 price target on shares of Ubiquiti Networks and gave the company a hold rating in a research note on Wednesday, January 16th. BMO Capital Markets lifted their price target on shares of Ubiquiti Networks to $99.00 and gave the company a market perform rating in a research note on Monday, November 12th. Finally, JMP Securities reissued a hold rating on shares of Ubiquiti Networks in a research note on Tuesday, November 13th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and two have given a strong buy rating to the stock. The company presently has a consensus rating of Hold and an average target price of $101.00.

Shares of NASDAQ:UBNT opened at $136.25 on Monday. Ubiquiti Networks has a twelve month low of $49.40 and a twelve month high of $137.69. The company has a debt-to-equity ratio of 3.58, a quick ratio of 5.20 and a current ratio of 3.73. The company has a market capitalization of $9.61 billion, a P/E ratio of 37.23, a price-to-earnings-growth ratio of 1.78 and a beta of 1.04.

Ubiquiti Networks (NASDAQ:UBNT) last issued its quarterly earnings results 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 net margin of 30.29% and a return on equity of 132.49%. The company had revenue of $307.28 million for the quarter, compared to the consensus estimate of $276.44 million. During the same quarter in the prior year, the company earned $0.76 EPS. Ubiquiti Networks’s quarterly revenue was up 22.5% on a year-over-year basis. On average, analysts forecast that Ubiquiti Networks will post 3.69 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Monday, February 25th. Shareholders of record on Monday, February 18th will be issued a $0.25 dividend. The ex-dividend date is Thursday, February 14th. This represents a $1.00 dividend on an annualized basis and a yield of 0.73%. Ubiquiti Networks’s payout ratio is currently 27.32%.

In other Ubiquiti Networks news, Director Ronald Sege sold 6,250 shares of the firm’s stock in a transaction on Wednesday, November 28th. The stock was sold at an average price of $110.19, for a total value of $688,687.50. Following the transaction, the director now owns 6,250 shares in the company, valued at approximately $688,687.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 78.70% of the company’s stock.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Enlightenment Research LLC acquired a new position in Ubiquiti Networks in the 4th quarter valued at about $80,000. Bremer Trust National Association acquired a new position in Ubiquiti Networks in the 4th quarter valued at about $80,000. NumerixS Investment Technologies Inc acquired a new position in Ubiquiti Networks in the 4th quarter valued at about $99,000. WealthTrust Fairport LLC acquired a new position in Ubiquiti Networks in the 3rd quarter valued at about $117,000. Finally, Strs Ohio acquired a new position in Ubiquiti Networks in the 4th quarter valued at about $175,000. Institutional investors and hedge funds 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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