The Case for and Against Uniti Group Inc. (UNIT)

Uniti Group Inc. (UNIT) is an interesting player in the Financial space, with a focus on REIT – Industrial. The stock has been active on the tape, currently trading at $16.10, down from yesterday’s close by -2.01%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Money managers are always interested in a company that can find the right recipe of fundamental data because it reflects something important going on underneath the surface. Uniti Group Inc. (UNIT) currently trades with a market capitalization of $2.84 Billion. That value represents a market adjusting for revenues that have been growing by 22.46 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For UNIT, the company currently has $49.92 Million of cash on the books, which is offset by $ current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $286.4 Million over the past twelve months. Generally speaking, earnings are expected to hold steady in coming quarters. Analysts are forecasting earnings of $0.02 on a per share basis this quarter. Perhaps, that suggests something about why 62.56% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, Uniti Group Inc. recorded a 52-week high of $29.65. It is now trading 13.55% off that level. The stock is trading $16.03 its 50-day moving average by -0.07%. The stock carved out a 52-week low down at $13.81.

In recent action, Uniti Group Inc. (UNIT) has made a move of -2.60% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 17.32, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 17.09% with $174.83 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of UNIT.

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