Institutional Investor Thrivent Expands Stake in Fiber REIT Uniti

A significant increase in shareholding by Thrivent Financial has put a fresh spotlight on fiber network provider Uniti Group Inc., underscoring continued institutional confidence. The move comes as a recent dip in U.S. Treasury yields may create a more favorable macro backdrop for real estate investment trusts.

Thrivent Financial substantially increased its position in Uniti during the second quarter of 2025, purchasing an additional 880,394 shares. This represents a 36.5% boost, raising its total holdings to approximately 3.29 million shares, or about 2.22% of the company. Based on the previous day's closing price of $7.37 per share, the market value of this stake is roughly $14.21 million. Uniti's market capitalization stands near $1.09 billion.

The broader institutional landscape for Uniti is pronounced, with institutions controlling 87.51% of all shares outstanding. The stock trades at a notably low price-to-earnings (P/E) ratio of 1.44, a figure often scrutinized for potential undervaluation relative to earnings capacity.

Should investors sell immediately? Or is it worth buying Uniti?

Macroeconomic Tailwinds Emerge

A supportive shift in the financial climate may be underway. The yield on the benchmark 10-year U.S. Treasury note recently fell to 4.13%, marking a two-week low. This decline was triggered by November's Consumer Price Index (CPI) reading of 2.7%, which came in below the anticipated 3.1%. For income-oriented, REIT-like entities such as Uniti, lower benchmark yields are generally positive. They reduce the cost of capital and can enhance the appeal of dividend-yielding assets when compared to government bonds.

Divergence Between Investors and Analysts

Despite the constructive institutional activity, Wall Street analysts maintain a cautious near-term stance. The consensus rating among researchers is "Hold," with an average price target of $6.55. This target sits meaningfully below the last traded price of $7.37, highlighting a clear divergence in perspective. The accumulation by funds suggests a longer-term, strategic positioning, while analysts appear to be awaiting more concrete operational catalysts and growth drivers.

The sustainability of the recent yield retreat could influence demand for infrastructure-focused REITs. However, for Uniti to capitalize on this environment and re-rate beyond current analyst expectations, the company will likely need to demonstrate tangible operational progress in its upcoming quarterly results. Solid execution may be the key to bridging the gap between investor accumulation and analyst valuation.