Unity Software (NYSE:U) Shares Gap Up After Better-Than-Expected Earnings

Unity Software Inc. (NYSE:U) shares gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $35.87, but opened at $42.10. Unity Software shares last traded at $38.5850, with a volume of 9,853,247 shares changing hands.

The company reported $0.20 earnings per share for the quarter, beating analysts’ consensus estimates of $0.17 by $0.03. The company had revenue of $470.62 million for the quarter, compared to the consensus estimate of $452.87 million. Unity Software had a negative return on equity of 9.45% and a negative net margin of 24.15%.Unity Software’s revenue was up 5.4% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.31) earnings per share. Unity Software has set its Q4 2025 guidance at EPS.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. Deutsche Bank Aktiengesellschaft started coverage on shares of Unity Software in a research report on Wednesday, October 22nd. They set a “hold” rating and a $39.00 price objective on the stock. Hsbc Global Res cut Unity Software from a “strong-buy” rating to a “hold” rating in a report on Tuesday, September 30th. Arete lowered Unity Software from a “buy” rating to a “neutral” rating and set a $36.00 price objective for the company. in a research note on Thursday, October 16th. Weiss Ratings reissued a “sell (d-)” rating on shares of Unity Software in a research note on Wednesday, October 8th. Finally, JMP Securities upped their price target on Unity Software from $30.00 to $35.00 and gave the stock a “market outperform” rating in a research note on Thursday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $37.10.

Insider Buying and Selling at Unity Software

In other Unity Software news, Director Tomer Bar-Zeev sold 250,000 shares of the company’s stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $39.83, for a total transaction of $9,957,500.00. Following the completion of the sale, the director owned 1,548,146 shares of the company’s stock, valued at $61,662,655.18. This represents a 13.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director David Helgason sold 1,350,000 shares of the company’s stock in a transaction that occurred on Monday, September 8th. The stock was sold at an average price of $44.43, for a total value of $59,980,500.00. Following the transaction, the director owned 6,139,173 shares of the company’s stock, valued at approximately $272,763,456.39. This trade represents a 18.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 2,401,951 shares of company stock valued at $101,957,409 in the last ninety days. Company insiders own 3.61% of the company’s stock.

Institutional Investors Weigh In On Unity Software

Large investors have recently modified their holdings of the business. Root Financial Partners LLC bought a new stake in Unity Software during the 3rd quarter worth about $27,000. Salem Investment Counselors Inc. bought a new position in shares of Unity Software during the third quarter worth approximately $40,000. CX Institutional acquired a new stake in Unity Software during the 2nd quarter worth approximately $25,000. Atlantic Union Bankshares Corp bought a new position in Unity Software during the 2nd quarter worth $28,000. Finally, Cornerstone Planning Group LLC boosted its holdings in Unity Software by 30,300.0% in the 1st quarter. Cornerstone Planning Group LLC now owns 1,216 shares of the company’s stock valued at $25,000 after purchasing an additional 1,212 shares during the period. 73.46% of the stock is currently owned by institutional investors.

Unity Software Stock Performance

The company has a debt-to-equity ratio of 0.70, a quick ratio of 2.73 and a current ratio of 2.78. The stock has a 50 day simple moving average of $39.99 and a 200 day simple moving average of $32.01.

About Unity Software

Unity Software Inc operates a real-time 3D development platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company offers its solutions directly through its online store and field sales operations in North America, Denmark, Finland, the United Kingdom, Germany, Japan, China, Singapore, and South Korea, as well as indirectly through independent distributors and resellers worldwide.