NEW YORK (TheStreet) -- Ubiquiti Networks (UBNT) stock is gaining Thursday after the communications tech company announced its board had authorized a share buyback program of up to $75 million. The company expects the repurchase program to commence June 2. The share repurchase program will be funded primarily using proceeds from the company's existing credit facility.
"Given our confidence in our long-term growth prospects and technology platforms, we believe that our shares are undervalued," said CFO Craig Foster in a statement.
By midday, shares had added 4.5% to $35.70.
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TheStreet Ratings team rates UBIQUITI NETWORKS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate UBIQUITI NETWORKS INC (UBNT) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."