UNIT Should I Buy
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$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
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Not a good buy right now. UNIT is in a strong short-term uptrend, but it’s also technically overbought after a sharp +10.64% regular-session jump and is trading just below key resistance (R1 ~8.34). With no supportive news catalyst, mixed/cautious Wall Street stance (including an Underperform), and elevated leverage/EBITDA concerns still central to the bear case, the current setup looks more like “chase risk” than a clean entry for an impatient buyer. I would avoid initiating new longs at this level and only reconsider on a pullback toward ~7.75 support or a clean breakout above ~8.34 with follow-through.
Trend is bullish but stretched. Moving averages are aligned positively (SMA_5 > SMA_20 > SMA_200), and MACD histogram is above zero and expanding (0.0126), confirming upside momentum. However, RSI(6) is 81.1 (overbought), increasing the odds of a near-term pause/pullback after today’s surge. Key levels: Pivot 7.752 (important near-term support), S1 7.164, S2 6.8; Resistance R1 8.34 then R2 8.704. Price is currently near resistance, making the risk/reward for a fresh entry less attractive. Pattern-based short-horizon expectation is modest: ~60% chance of ~+0.76% next day, ~-0.43% next week, ~+1.8% next month.
Intellectia Proprietary Trading Signals
Bullish technical structure (MA stack + positive MACD) and strong price momentum (+10.64% regular session; green post-market). Options market sentiment is call-skewed (low put/call ratios). Barclays recently raised its price target to $8 (Equal Weight), signaling some incremental confidence in valuation framework. Reported 2025/Q3 showed very large YoY revenue and earnings increases (though quality/durability needs scrutiny).
after a sharp one-day move, and price is pressing into resistance (~8.34), increasing pullback risk for an immediate entry. Wall Street remains mixed-to-cautious: BofA keeps an Underperform and cited declining EBITDA/elevated leverage; Wells Fargo also stays sidelined citing operational risk and lack of near-term catalysts. No positive news flow in the last week to justify chasing. Elevated implied volatility implies pricier hedging and higher market-implied uncertainty. Next earnings: QDEC 2025 on 2026-02-26 (pre-market) with EPS estimate shown as -0.39, which can re-focus attention on normalized profitability.
Latest reported quarter: 2025/Q3. Revenue rose to $722.6M (+147.3% YoY) and net income surged to $1.5636B (+13039.5% YoY) with EPS $4.92 (+6050% YoY). Despite these headline gains, gross margin fell to 32.7% (-46.44% YoY), which is a notable deterioration in operating quality. The extreme YoY jumps suggest potential one-offs/extraordinary items may be inflating bottom-line comparisons, so the margin drop and upcoming earnings expectations matter for assessing sustainable growth.
Recent trend: mixed and still cautious. Barclays (2026-01-29) raised PT to $8 from $7 and stayed Equal Weight (more constructive on methodology/valuation). Earlier, BofA (2025-11-10) cut PT to $6 and kept Underperform, citing declining EBITDA and elevated leverage. Wells Fargo (2025-11-07) cut PT to $7 and kept Equal Weight, noting balance sheet improvements but highlighting operational risk and limited near-term catalysts. Overall ‘pros’ view: some stabilization/balance-sheet progress and fiber build ramp potential; ‘cons’ view: leverage/EBITDA pressure and insufficient near-term catalysts—net result is not a strong Wall Street-backed buy at current levels.
