This Network-Tech Stock Is Rising 23%. It Hiked Its Dividend and More.

Ubiquiti raised its quarterly dividend to 80 cents a share. (Courtesy Ubiquiti)

Shares of Ubiquiti were spiking Friday after the network-technology company hiked its quarterly dividend, announced a new stock buyback program, and posted strong quarterly earnings.

The company reported adjusted earnings of $3.54 a share on revenue of $759 million for its fiscal fourth quarter. Revenue grew nearly 50% from the prior year, and the company’s gross profit margin expanded to 45.1% from 40.2%.

Ubiquiti shares were rising 23% to $481.18 a share Friday. The stock has climbed over 140% in the last 12 months.

Beyond the impressive fourth-quarter earnings, two pieces of positive news helped lift the stock. First, the company’s board approved a share repurchase program authorizing up to $500 million in buybacks. Second, the company declared its intent to pay quarterly dividends of at least 80 cents a share in fiscal 2026.

Ubiquiti had paid shareholders a dividend of 60 cents a share since September 2021.

Write to Nate Wolf at nate.wolf@barrons.com