Weekly Pick: UNIT
A multi-year turnaround consolidates above breakout support
UNIT scores Tier 1 in my model and stands out because it combines accelerating revenue, strong institutional sponsorship, and one of the cleaner long-term technical structures on my watchlist.
The chart is in the early stages of a multi-year trend reversal following an extended base-building process. After a powerful breakout earlier this year, the stock is now consolidating above support while the longer-term trend continues to improve.
Uniti Group Inc
Uniti Group owns and leases communications infrastructure that forms part of the backbone of the internet and telecommunications network across the United States.
The company primarily owns fiber optic networks, cell tower-related assets, and other communications infrastructure that telecom companies use to deliver internet, wireless, and data services to customers.
Uniti operates like a landlord. They lease infrastructure to communications providers under long-term agreements and collect recurring rental income.
As demand for bandwidth, cloud computing, streaming, artificial intelligence, and data consumption continues to grow, the need for fiber infrastructure is expected to increase as well. Fiber networks are expensive and time-consuming to build, creating meaningful barriers to entry for competitors.
Fundamentals & Ownership
Market Cap: $2.83B
Current P/E: 3.56 | Forward P/E: N/A
Institutional Ownership: 90.8%
Insider Ownership: 6.2%
Short Float: 6.1%
Accelerating sales growth up more than 25% over the past year.
Operating Margin: 12.8%
The company still carries high leverage, so this is not a pristine balance sheet. For me, the attraction is the technical setup: a multi-year base, a major breakout, and a constructive consolidation above support.
The very high institutional ownership matters because the float is largely in sticky professional hands while the stock emerges from a long-term bottoming structure. Institutions are patient and won’t dump a position unless something very significant in their outlook changes.
Technicals
On the Daily, the stock has been consolidating above the 50EMA since April.
On the Weekly, the stock is in full bull structure above the EMA.
On the Monthly, the stock has closed above the 50EMA for the past 3 months.
RSI is constructive on all time frames.
Daily
Weekly
Monthly
Risks
The company carries a high debt load and remains sensitive to interest rates and capital market conditions.
A decisive break below the Weekly 8EMA would invalidate the current setup.
How I’m Trading It
Shares and August/November calls.
There’s heavy OI on multiple strikes with August expiration, and heavy OI in the November $13s. Spreads in the option chain are wider than I like and that will factor into the strikes I take.
I trade what I post.
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