8 Best Low Float Stocks to Invest in Now

6. Ubiquiti Inc. (NYSE:UI)

Number of Hedge Fund Holders: 23

Ubiquiti Inc. (NYSE:UI) is a technology company that designs and manufactures networking and communication products for enterprises and service providers. Its portfolio includes wireless networking equipment, routers, switches, security cameras, and access points, primarily sold under the UniFi, AmpliFi, and EdgeMax brands. UI focuses on scalable, high-performance solutions for Wi-Fi, broadband access, and enterprise IT infrastructure. The company operates through a direct-to-consumer and distributor-based sales model, serving customers worldwide. Its products are widely used in businesses, homes, and internet service provider networks.

Ubiquiti Inc. (NYSE:UI) delivered significant revenue growth in Q3 2024, with total revenues increasing by 29% to $599.9 million, compared to $465.0 million in the same quarter of the prior year. This growth was fueled by both the Enterprise Technology and Service Provider Technology platforms, with Enterprise Technology revenue rising 32% to $518.2 million and Service Provider Technology revenue increasing 11% to $81.7 million. The company’s gross profit margin improved to 41%, up from 38% in Q3 2023, driven by a favorable product mix, reduced warehouse-related expenses, and lower excess inventory charges. However, these gains were partially offset by higher shipping and tariff costs.

Ubiquiti Inc. (NYSE:UI) posted higher operating expenses, with R&D expenses increasing by 8% to $40.0 million and SG&A expenses surging 45% to $28.5 million. The rise in SG&A was largely attributed to higher bad debt expenses from a customer default and increased fees related to webstore credit card processing. Despite these cost increases, interest and other expenses fell by 37% to $11.4 million due to reduced borrowings and lower interest rates, offset slightly by higher foreign exchange losses. Additionally, the company’s effective tax rate decreased to 18.3% from 20.2% in Q3 2023, reflecting changes in the mix of income earned across tax jurisdictions. With only 4.18 million shares in the public float, UI is one of the best low float stocks to invest in now.