Wells Fargo slashes price target on Uniti Group Inc. [UNIT] – find out why.

Uniti Group Inc. [NASDAQ: UNIT] gained 0.14% or 0.01 points to close at $10.41 with a heavy trading volume of 6414038 shares. The company report on October 6, 2020 that Uniti Group Inc. Launches New Nationwide Dark Fiber Services.

Uniti Group Inc. (“Uniti”) (Nasdaq: UNIT) announced today that it will begin offering nationwide dark fiber services on 31,000 fiber route miles, spanning 35 states across Tier I, II and III markets. Uniti has full ownership and use of this fiber network consisting of 2.2 million fiber strand miles as part of its previously announced settlement agreement with Windstream. Combined with its existing network, Uniti is now able to offer dark fiber services on over 3 million strand miles of fiber. Metro, regional, and long haul fiber will be available in these markets through IRU or lease structures. Conduit infrastructure will also be available in select markets.

Ron Mudry, Senior Vice President, Chief Revenue Officer of Uniti, commented, “This year has proven more than ever that the need for reliable, scalable networks, and secure connectivity is critical. Our expanded national fiber network will help content and media providers, data center operators, Internet service providers, wireless carriers and other network service providers address their most important needs. Changing demand trends and work practices are challenging networks to address rapidly escalating bandwidth demand, increased content streaming, growing remote workforces, rise in virtual learning, and the continued momentum of 5G solutions. I am very excited about the numerous opportunities this new network will provide for our customers to help them grow their businesses and expand their market reach.”.

It opened the trading session at $10.44, the shares rose to $10.59 and dropped to $10.39, the range by which the price of stock traded the whole day. The daily chart for UNIT points out that the company has recorded 100.19% gains over the past six months. However, it is still -114.2% lower than its most recent low trading price.

If we look at the average trading volume of 1.67M shares, UNIT reached to a volume of 6414038 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Uniti Group Inc. [UNIT]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for UNIT shares is $10.14 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on UNIT stock is a recommendation set at 2.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Wells Fargo have made an estimate for Uniti Group Inc. shares, keeping their opinion on the stock as Equal Weight, with their previous recommendation back on August 12, 2020. While these analysts kept the previous recommendation, Barclays raised their target price to Equal Weight. The new note on the price target was released on July 15, 2020, representing the official price target for Uniti Group Inc. stock. Previously, the target price had yet another raise to $13, while Raymond James analysts kept a Strong Buy rating on UNIT stock.

The Average True Range (ATR) for Uniti Group Inc. is set at 0.43, with the Price to Sales ratio for UNIT stock in the period of the last 12 months amounting to 1.89. Price to Free Cash Flow for UNIT in the course of the last twelve months was 10.14 with Quick ratio for the last quarter at 0.10.

Trading performance analysis for UNIT stock

Uniti Group Inc. [UNIT] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.19. With this latest performance, UNIT shares gained by 15.22% in over the last four-week period, additionally plugging by 100.19% over the last 6 months – not to mention a rise of 44.08% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for UNIT stock in for the last two-week period is set at 59.07, with the RSI for the last a single of trading hit 62.61, and the three-weeks RSI is set at 57.94 for Uniti Group Inc. [UNIT]. The present Moving Average for the last 50 days of trading for this stock 9.85, while it was recorded at 10.45 for the last single week of trading, and 8.40 for the last 200 days.

Uniti Group Inc. [UNIT]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Uniti Group Inc. [UNIT] shares currently have an operating margin of +2.55 and a Gross Margin at +48.09. Uniti Group Inc.’s Net Margin is presently recorded at +0.92.

Return on Total Capital for UNIT is now 0.77, given the latest momentum, and Return on Invested Capital for the company is 0.29. Additionally, UNIT Total Debt to Total Capital is recorded at 143.14, with Total Debt to Total Assets ending up at 103.62.

Reflecting on the efficiency of the workforce at the company, Uniti Group Inc. [UNIT] managed to generate an average of $11,160 per employee. Receivables Turnover for the company is 8.87 with a Total Asset Turnover recorded at a value of 0.23.Uniti Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.10 and a Current Ratio set at 0.10.

Uniti Group Inc. [UNIT]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Uniti Group Inc. posted -0.1/share EPS, while the average EPS was predicted by analysts to be reported at 0/share. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for UNIT. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Uniti Group Inc. go to 8.60%.

An analysis of insider ownership at Uniti Group Inc. [UNIT]

There are presently around $1,661 million, or 85.20% of UNIT stock, in the hands of institutional investors. The top three institutional holders of UNIT stocks are: VANGUARD GROUP INC with ownership of 30,870,000, which is approximately 2.743% of the company’s market cap and around 0.50% of the total institutional ownership; BLACKROCK INC., holding 29,737,897 shares of the stock with an approximate value of $309.57 million in UNIT stocks shares; and NOMURA HOLDINGS INC, currently with $115.52 million in UNIT stock with ownership of nearly -8.084% of the company’s market capitalization.

Positions in Uniti Group Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 106 institutional holders increased their position in Uniti Group Inc. [NASDAQ:UNIT] by around 13,244,911 shares. Additionally, 111 investors decreased positions by around 14,301,590 shares, while 63 investors held positions by with 132,018,351 shares. The mentioned changes placed institutional holdings at 159,564,852 shares, according to the latest SEC report filing. UNIT stock had 35 new institutional investments in for a total of 3,237,620 shares, while 38 institutional investors sold positions of 5,763,304 shares during the same period.

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