Diameter Capital Increases Stake in Uniti Group with $32.78 Million Purchase
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 18 2026
0mins
Source: Fool
- Share Acquisition: On May 15, 2026, Diameter Capital Partners disclosed the purchase of 4,181,528 shares of Uniti Group, valued at approximately $32.78 million, indicating strong confidence in the company.
- Increased Stake: Following this acquisition, Diameter Capital's total holdings in Uniti rose to 5,681,528 shares, with the quarter-end value increasing by $42.78 million from the previous filing, demonstrating a solid commitment to its investment in Uniti.
- Strong Market Performance: As of May 14, 2026, Uniti's stock price stood at $11.25, reflecting a 42.6% increase over the past year and outperforming the S&P 500 by 15.29 percentage points, showcasing its robust market position.
- Positive Industry Outlook: Uniti, a REIT focused on communications infrastructure, is benefiting from surging demand driven by artificial intelligence, planning to invest over $1 billion in fiber network construction by 2029, which, while pressuring near-term profitability, presents significant long-term growth potential.
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Analyst Views on UNIT
Wall Street analysts forecast UNIT stock price to fall
4 Analyst Rating
1 Buy
2 Hold
1 Sell
Hold
Current: 11.350
Low
6.00
Averages
6.88
High
8.00
Current: 11.350
Low
6.00
Averages
6.88
High
8.00
About UNIT
Uniti Group Inc. is a premier insurgent fiber provider dedicated to enabling mission-critical connectivity across the United States. It offers advanced communications services, including fiber-based broadband to residential and business customers, managed cloud communications and security services for enterprises and government entities and tailored wave and transport solutions for carriers, content providers and large cloud computing and storage service providers. Its segments include Kinetic, Uniti Solutions, and Fiber Infrastructure. Kinetic segment offers local and long-distance voice services and Web conferencing products. Uniti Solutions segment includes software solutions and network connectivity. Fiber Infrastructure segment offers network bandwidth to other telecommunications carriers, network operators, content providers and storage service providers. Its portfolio of services is offered through a suite of brands: Uniti Wholesale, Kinetic, Uniti Fiber, and Uniti Solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Kinetic Surpasses 2 Million Fiber Premises Milestone
- User Coverage Expansion: Kinetic has successfully built over 2 million fiber premises across its 18-state service area, marking a significant milestone in the company's aggressive fiber broadband expansion, showcasing strong growth potential in rural and suburban markets.
- Infrastructure Investment: The company's ongoing investment in fiber infrastructure, particularly in the greater Lexington, KY area, reflects a deep understanding of the growing demand for high-speed internet services, which is expected to enhance market share and competitiveness.
- Customer Experience Enhancement: The Chief Customer Officer of Kinetic noted that over 50% of its customer base and revenue now come from fiber services, emphasizing the company's commitment to providing reliable internet service and professional support to enhance customer satisfaction and loyalty.
- Strategic Partnerships and Innovation: Kinetic launched a new bundle with YouTube TV and was named the 2026 Telecommunications Company of the Year, demonstrating its ongoing efforts in technological innovation and market recognition, further solidifying its leadership position in the fiber internet market.
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Uniti Group Launches $1.14 Billion Secured Notes Offering
- Bond Offering Size: Uniti Group, through its subsidiary Kinetic ABS Issuer LLC, has commenced an offering of $1.14 billion in secured fiber network revenue term notes, expected to mature in June 2033, aimed at strengthening the company's capital structure and supporting future growth.
- Asset Backing Context: The notes will be secured by residential fiber network assets and related customer agreements across several states including Texas, Arkansas, and Kentucky, demonstrating the company's robust foundation and potential revenue-generating capabilities in these markets.
- Liquidity Support Measures: In conjunction with the notes offering, Uniti plans to increase the maximum commitment under its existing liquidity funding note facility and extend its maturity date to meet the liquidity reserve requirements of the transaction, thereby ensuring financial stability amid market fluctuations.
- Planned Use of Proceeds: Uniti intends to utilize the net proceeds from the notes offering for general corporate purposes, which may include success-based capital expenditures and repayment of outstanding debt, helping to optimize the company's financial position and enhance its competitive edge in the market.
See More
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- Community Gigabit Coverage: Kinetic announced that over 75% of homes in the Hazard community now have access to its high-speed next-generation internet, marking a significant advancement in the region's digital infrastructure and enhancing residents' quality of life.
- Support for Economic Growth: Currently, 8,900 homes benefit from Kinetic's future-proof internet, providing faster and more reliable connectivity that supports work, education, streaming, and telehealth, thereby promoting economic growth and opportunities.
- Business Growth Potential: Research indicates that fiber-connected communities experience a 213% higher business growth rate, a 10% increase in self-employment, and a 14-17% rise in home values, demonstrating the significant economic benefits of Kinetic's investments.
- Commitment to Ongoing Investment: Kinetic was named the 2026 Best Rural Fiber Provider and continues to expand its fiber network in Kentucky, demonstrating its commitment to providing high-quality internet services to more homes and businesses.
See More
Searchlight Capital Fully Exits Uniti Group Shares
- Shareholding Change: Searchlight Capital sold its entire holding of 2,273,504 Uniti Group shares in Q1 2026, with an estimated trade size of $17.82 million, marking a complete exit from the position which now represents 0% of its assets under management.
- Asset Management Impact: The transaction resulted in a 16.29% reduction in Searchlight's 13F reportable assets, with a quarter-end position value decline of $15.94 million, highlighting the direct impact of market fluctuations on the fund's assets.
- Financial Performance: Despite Uniti Group achieving $441.6 million in adjusted EBITDA in Q1, indicating strong customer growth, the company reported a net loss due to high interest expenses and significant capital requirements, raising concerns about its financial flexibility.
- Future Growth Target: Uniti's management aims to pass 3.5 million homes with fiber by the end of 2029, and while facing challenges in network expansion, the ability to convert new fiber passings into paying customers will be crucial for future stock performance.
See More
Searchlight Capital Fully Exits Uniti Group Stake
- Stake Change: According to a May 15, 2026 SEC filing, Searchlight Capital sold its entire holding of 2,273,504 Uniti Group shares in Q1, resulting in a $15.94 million decline in the stake's quarter-end value due to trading activity and price fluctuations.
- Asset Management Status: Following the sale, Uniti Group now represents 0% of Searchlight Capital's 13F reportable assets, with its top holding LILAK valued at $108.89 million, accounting for 99.5% of total AUM.
- Financial Performance: As of May 14, 2026, Uniti Group shares were priced at $11.25, reflecting a 42.6% increase over the past year, outperforming the S&P 500 by 15.29 percentage points, indicating strong market performance.
- Future Challenges: Uniti Group's transformation faces two main challenges: expanding the Kinetic consumer network and monetizing wholesale fiber demand; despite strong customer growth in Q1, the company reported a net loss due to high interest expenses and capital requirements, prompting investors to assess its ability to translate fiber expansion into financial flexibility.
See More
Diameter Capital Increases Stake in Uniti Group with $32.78 Million Purchase
- Share Acquisition: On May 15, 2026, Diameter Capital Partners disclosed the purchase of 4,181,528 shares of Uniti Group, valued at approximately $32.78 million, indicating strong confidence in the company.
- Increased Stake: Following this acquisition, Diameter Capital's total holdings in Uniti rose to 5,681,528 shares, with the quarter-end value increasing by $42.78 million from the previous filing, demonstrating a solid commitment to its investment in Uniti.
- Strong Market Performance: As of May 14, 2026, Uniti's stock price stood at $11.25, reflecting a 42.6% increase over the past year and outperforming the S&P 500 by 15.29 percentage points, showcasing its robust market position.
- Positive Industry Outlook: Uniti, a REIT focused on communications infrastructure, is benefiting from surging demand driven by artificial intelligence, planning to invest over $1 billion in fiber network construction by 2029, which, while pressuring near-term profitability, presents significant long-term growth potential.
See More
Kinetic Surpasses 2 Million Fiber Premises Milestone
- User Coverage Expansion: Kinetic has successfully built over 2 million fiber premises across its 18-state service area, marking a significant milestone in the company's aggressive fiber broadband expansion, showcasing strong growth potential in rural and suburban markets.
- Infrastructure Investment: The company's ongoing investment in fiber infrastructure, particularly in the greater Lexington, KY area, reflects a deep understanding of the growing demand for high-speed internet services, which is expected to enhance market share and competitiveness.
- Customer Experience Enhancement: The Chief Customer Officer of Kinetic noted that over 50% of its customer base and revenue now come from fiber services, emphasizing the company's commitment to providing reliable internet service and professional support to enhance customer satisfaction and loyalty.
- Strategic Partnerships and Innovation: Kinetic launched a new bundle with YouTube TV and was named the 2026 Telecommunications Company of the Year, demonstrating its ongoing efforts in technological innovation and market recognition, further solidifying its leadership position in the fiber internet market.
See More
Uniti Group Launches $1.14 Billion Secured Notes Offering
- Bond Offering Size: Uniti Group, through its subsidiary Kinetic ABS Issuer LLC, has commenced an offering of $1.14 billion in secured fiber network revenue term notes, expected to mature in June 2033, aimed at strengthening the company's capital structure and supporting future growth.
- Asset Backing Context: The notes will be secured by residential fiber network assets and related customer agreements across several states including Texas, Arkansas, and Kentucky, demonstrating the company's robust foundation and potential revenue-generating capabilities in these markets.
- Liquidity Support Measures: In conjunction with the notes offering, Uniti plans to increase the maximum commitment under its existing liquidity funding note facility and extend its maturity date to meet the liquidity reserve requirements of the transaction, thereby ensuring financial stability amid market fluctuations.
- Planned Use of Proceeds: Uniti intends to utilize the net proceeds from the notes offering for general corporate purposes, which may include success-based capital expenditures and repayment of outstanding debt, helping to optimize the company's financial position and enhance its competitive edge in the market.
See More
Kinetic Achieves Gigabit Internet Access in Hazard Community
- Community Gigabit Coverage: Kinetic announced that over 75% of homes in the Hazard community now have access to its high-speed next-generation internet, marking a significant advancement in the region's digital infrastructure and enhancing residents' quality of life.
- Support for Economic Growth: Currently, 8,900 homes benefit from Kinetic's future-proof internet, providing faster and more reliable connectivity that supports work, education, streaming, and telehealth, thereby promoting economic growth and opportunities.
- Business Growth Potential: Research indicates that fiber-connected communities experience a 213% higher business growth rate, a 10% increase in self-employment, and a 14-17% rise in home values, demonstrating the significant economic benefits of Kinetic's investments.
- Commitment to Ongoing Investment: Kinetic was named the 2026 Best Rural Fiber Provider and continues to expand its fiber network in Kentucky, demonstrating its commitment to providing high-quality internet services to more homes and businesses.
See More
Searchlight Capital Fully Exits Uniti Group Shares
- Shareholding Change: Searchlight Capital sold its entire holding of 2,273,504 Uniti Group shares in Q1 2026, with an estimated trade size of $17.82 million, marking a complete exit from the position which now represents 0% of its assets under management.
- Asset Management Impact: The transaction resulted in a 16.29% reduction in Searchlight's 13F reportable assets, with a quarter-end position value decline of $15.94 million, highlighting the direct impact of market fluctuations on the fund's assets.
- Financial Performance: Despite Uniti Group achieving $441.6 million in adjusted EBITDA in Q1, indicating strong customer growth, the company reported a net loss due to high interest expenses and significant capital requirements, raising concerns about its financial flexibility.
- Future Growth Target: Uniti's management aims to pass 3.5 million homes with fiber by the end of 2029, and while facing challenges in network expansion, the ability to convert new fiber passings into paying customers will be crucial for future stock performance.
See More
Searchlight Capital Fully Exits Uniti Group Stake
- Stake Change: According to a May 15, 2026 SEC filing, Searchlight Capital sold its entire holding of 2,273,504 Uniti Group shares in Q1, resulting in a $15.94 million decline in the stake's quarter-end value due to trading activity and price fluctuations.
- Asset Management Status: Following the sale, Uniti Group now represents 0% of Searchlight Capital's 13F reportable assets, with its top holding LILAK valued at $108.89 million, accounting for 99.5% of total AUM.
- Financial Performance: As of May 14, 2026, Uniti Group shares were priced at $11.25, reflecting a 42.6% increase over the past year, outperforming the S&P 500 by 15.29 percentage points, indicating strong market performance.
- Future Challenges: Uniti Group's transformation faces two main challenges: expanding the Kinetic consumer network and monetizing wholesale fiber demand; despite strong customer growth in Q1, the company reported a net loss due to high interest expenses and capital requirements, prompting investors to assess its ability to translate fiber expansion into financial flexibility.
See More
Diameter Capital Increases Stake in Uniti Group with $32.78 Million Purchase
- Share Acquisition: On May 15, 2026, Diameter Capital Partners disclosed the purchase of 4,181,528 shares of Uniti Group, valued at approximately $32.78 million, indicating strong confidence in the company.
- Increased Stake: Following this acquisition, Diameter Capital's total holdings in Uniti rose to 5,681,528 shares, with the quarter-end value increasing by $42.78 million from the previous filing, demonstrating a solid commitment to its investment in Uniti.
- Strong Market Performance: As of May 14, 2026, Uniti's stock price stood at $11.25, reflecting a 42.6% increase over the past year and outperforming the S&P 500 by 15.29 percentage points, showcasing its robust market position.
- Positive Industry Outlook: Uniti, a REIT focused on communications infrastructure, is benefiting from surging demand driven by artificial intelligence, planning to invest over $1 billion in fiber network construction by 2029, which, while pressuring near-term profitability, presents significant long-term growth potential.
See More
