Uniti Group Inc. (UNIT) Loud Thud Doesn’t Negate The Long-Term Story

Despite closing 0.49 points higher on 07 November, Uniti Group Inc. (NASDAQ:UNIT) remains a key investment for many, but the stock is also a popular trading vehicle. Here’s how to trade it using charts and trading levels Thursday. The shares accumulated 2.46 percent at $20.41 with a heavy trade volume of 2.828 million shares. After opening the session at $19.96, the shares went as high as $20.56 and as low as $19.75, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.54 billion and now has 173.67 million shares outstanding. Uniti Group Inc. (UNIT) stock has gained 4.99 percent of market value in 21 trading days.

UNIT stock has a trailing 3-year beta of 0.81, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0 a share in the trailing twelve months. The stock’s value has surged 14.73 percent year to date (YTD) against a rise of 23.47 percent in 12 month’s time. The company’s shares still trade -12.85 percent away from its 1-year high of $23.42 and 46.41 percent up from 52-week low of $13.94. The average consensus rating on the company is 2.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Uniti Group Inc. (UNIT) will probably climb 9.02 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $26-month high price target. This represents a whopping 27.39 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $23, which represents a return potential of 12.69 percent when compared to the closing price of the stock of $20.41 on Wednesday, November 07. The lowest price target for the stock is $15 — slightly more than -26.51 percent from UNIT’s current share price.

History has shown that shares in Uniti Group Inc. have gone up on 4 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. Investors will get their next glimpse of UNIT’s Q4 earnings on February 28. Analysts are forecasting revenue to climb 8.5 percent to $267M in the fiscal fourth quarter, while earnings are seen soaring by nearly -50 percent to $0.06 per share. It earned $0.01 per share, worse than the $0.03, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $253M, worse than the $254M analysts expected. Earnings are estimated to increase by -451.7 percent this year, 325 percent next year and continue to increase by 15.5 percent annually for the next 5 years.

Let’s take a look at some insider activity at Uniti Group Inc. (NASDAQ:UNIT) and see the pattern. The earliest insider trade took place on 08/23/2017. Solomon David L gathered a total of 1.3 thousand shares of company at average share price of $19.1. The total for the purchase was set at $24.83 thousand. After this transaction, the Director account balance stood at 20.14 thousand shares. The stock grew 6.23 percent since that insider purchase. On 08/21/2017, Gunderman Kenny, President and CEO, purchased 4 thousand shares at a price per share of $18.88. This added 75.52 thousand shares to the insider’s fortune and the stock saw a 7.47 percent rally in value since the news became public. This transaction left 272.55 thousand shares in the President and CEO account.

On 08/18/2017, Principal Accounting Officer Schuhmacher Blake performed a purchase transaction worth $9.49 thousand. This purchase at $18.98 each has added 0.5 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 6.9 percent increase since the transaction was reported. The insider now is left with 16.67 thousand shares remaining in the account. Gunderman Kenny, who performs the President and CEO job, bought 2 thousand shares for $38.46 thousand. The acquisition occurred on 08/17/2017 was priced at $19.23 per share. The share price soared 5.51 percent since the reporting date. Gunderman Kenny now left with a stake of 268.55 thousand UNIT stock worth $5.48 million after the insider buying.

The stock is currently hovering around the first support level of $19.92. Below this, the next support is placed in the zone of $19.43. Till the time, the UNIT stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 58.62 on daily chart, which may remain a cause for concern. If the price breaks below $19.43 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $20.73 mark may result into a pull-back move towards $21.05 level.

Further, it is sporting a 3.6 on the Price-to-Sales ratio. Compare this with the industry average P/S of 8.62.