Ubiquiti (NYSE:UI) Stock Price Up 8.4% Following Strong Earnings

Ubiquiti Inc. (NYSE:UI)’s stock price was up 8.4% on Monday after the company announced better than expected quarterly earnings. The stock traded as high as $671.32 and last traded at $674.5940. Approximately 40,288 shares were traded during trading, a decline of 63% from the average daily volume of 108,703 shares. The stock had previously closed at $622.33.

The company reported $3.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.08 by $0.80. The business had revenue of $814.87 million for the quarter, compared to analysts’ expectations of $716.95 million. Ubiquiti had a return on equity of 129.52% and a net margin of 29.90%.The firm’s quarterly revenue was up 35.8% compared to the same quarter last year. During the same quarter last year, the business earned $2.28 earnings per share.

Ubiquiti Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, February 23rd. Investors of record on Tuesday, February 17th will be paid a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Tuesday, February 17th. Ubiquiti’s payout ratio is 21.80%.

Wall Street Analysts Forecast Growth

UI has been the subject of a number of analyst reports. Wall Street Zen raised shares of Ubiquiti from a “hold” rating to a “buy” rating in a report on Saturday. Zacks Research raised Ubiquiti from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, December 3rd. Weiss Ratings reissued a “hold (c+)” rating on shares of Ubiquiti in a research note on Monday, December 29th. Barclays raised their target price on Ubiquiti from $455.00 to $527.00 and gave the stock an “underweight” rating in a report on Friday. Finally, BWS Financial reaffirmed a “buy” rating and issued a $720.00 price target on shares of Ubiquiti in a research note on Monday. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $615.67.

Insider Activity

In related news, CAO Kevin Radigan sold 350 shares of the stock in a transaction that occurred on Wednesday, November 12th. The stock was sold at an average price of $576.58, for a total transaction of $201,803.00. Following the completion of the sale, the chief accounting officer directly owned 2,768 shares of the company’s stock, valued at approximately $1,595,973.44. This represents a 11.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 93.10% of the company’s stock.

Hedge Funds Weigh In On Ubiquiti

Several hedge funds have recently made changes to their positions in UI. Geode Capital Management LLC raised its holdings in shares of Ubiquiti by 2.4% in the fourth quarter. Geode Capital Management LLC now owns 73,092 shares of the company’s stock valued at $40,458,000 after purchasing an additional 1,696 shares during the last quarter. Legato Capital Management LLC bought a new position in Ubiquiti in the fourth quarter valued at $303,000. Banque Cantonale Vaudoise acquired a new stake in Ubiquiti in the 4th quarter valued at $94,000. Handelsbanken Fonder AB lifted its position in Ubiquiti by 18.5% during the 4th quarter. Handelsbanken Fonder AB now owns 1,540 shares of the company’s stock worth $852,000 after buying an additional 240 shares in the last quarter. Finally, Wisconsin Capital Management LLC bought a new stake in Ubiquiti during the 4th quarter worth about $553,000. 4.00% of the stock is owned by institutional investors.

Ubiquiti Trading Up 14.4%

The company has a market capitalization of $43.07 billion, a price-to-earnings ratio of 48.50 and a beta of 1.40. The stock’s 50 day moving average price is $566.75 and its 200 day moving average price is $582.86.

About Ubiquiti

Ubiquiti Inc (NYSE: UI) is a U.S.-based technology company that designs and sells networking and wireless communication products for enterprise, service provider and consumer markets. Its product portfolio includes Wi‑Fi access points, routers and gateways, managed Ethernet switches, network management software, and IP surveillance systems. Ubiquiti’s offerings are organized under several well‑known lines—most notably UniFi for managed LAN/Wi‑Fi and networked video, AmpliFi for consumer Wi‑Fi, and product families targeting service‑provider and point‑to‑point wireless broadband applications.

The company emphasizes integrated hardware and software solutions, with centralized management and cloud‑enabled control as core features of its platform approach.