Unity Software (NYSE:U) Shares Down 8.2% – Time to Sell?

Unity Software Inc. (NYSE:U)’s share price fell 8.2% on Tuesday . The stock traded as low as $26.90 and last traded at $26.4550. 1,996,818 shares changed hands during trading, a decline of 83% from the average session volume of 12,091,689 shares. The stock had previously closed at $28.81.

Analyst Ratings Changes

U has been the topic of a number of research reports. BTIG Research upgraded Unity Software from a “neutral” rating to a “buy” rating and set a $60.00 price target on the stock in a research report on Thursday, December 11th. Macquarie raised shares of Unity Software from a “neutral” rating to an “outperform” rating and upped their price objective for the company from $33.00 to $50.00 in a research note on Friday, November 7th. Jefferies Financial Group lifted their target price on shares of Unity Software from $49.00 to $55.00 and gave the stock a “buy” rating in a research report on Monday, January 5th. The Goldman Sachs Group upped their price target on shares of Unity Software from $42.00 to $47.00 and gave the company a “neutral” rating in a research report on Tuesday, January 13th. Finally, Arete Research upgraded Unity Software from a “neutral” rating to a “buy” rating and set a $48.00 price objective on the stock in a report on Monday, December 1st. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $45.27.

Unity Software Stock Performance

The company has a 50-day simple moving average of $43.73 and a two-hundred day simple moving average of $40.32. The company has a debt-to-equity ratio of 0.70, a quick ratio of 2.78 and a current ratio of 2.78. The firm has a market capitalization of $10.68 billion, a P/E ratio of -23.63, a PEG ratio of 30.50 and a beta of 2.04.

Unity Software (NYSE:U) last released its earnings results on Wednesday, November 5th. The company reported $0.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.17 by $0.03. Unity Software had a negative net margin of 24.15% and a negative return on equity of 9.45%. The firm had revenue of $470.62 million during the quarter, compared to analyst estimates of $452.87 million. During the same period last year, the business earned ($0.31) earnings per share. The business’s revenue was up 5.4% on a year-over-year basis. As a group, equities analysts forecast that Unity Software Inc. will post -1.25 EPS for the current year.

Insider Buying and Selling at Unity Software

In other news, Director David Helgason sold 8,347 shares of Unity Software stock in a transaction on Thursday, December 11th. The shares were sold at an average price of $49.16, for a total transaction of $410,338.52. Following the transaction, the director owned 7,635 shares in the company, valued at $375,336.60. This trade represents a 52.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Jarrod Yahes sold 27,742 shares of the firm’s stock in a transaction that occurred on Wednesday, November 26th. The stock was sold at an average price of $42.79, for a total transaction of $1,187,080.18. Following the sale, the chief financial officer owned 546,129 shares in the company, valued at approximately $23,368,859.91. The trade was a 4.83% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 1,397,935 shares of company stock worth $65,679,498. 3.61% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. GAMMA Investing LLC grew its stake in shares of Unity Software by 10.8% in the third quarter. GAMMA Investing LLC now owns 2,967 shares of the company’s stock worth $119,000 after acquiring an additional 288 shares in the last quarter. Newbridge Financial Services Group Inc. raised its position in Unity Software by 12.9% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 2,696 shares of the company’s stock valued at $108,000 after purchasing an additional 308 shares during the last quarter. Xponance Inc. grew its position in Unity Software by 1.8% during the 3rd quarter. Xponance Inc. now owns 18,291 shares of the company’s stock worth $732,000 after purchasing an additional 328 shares during the last quarter. Larson Financial Group LLC boosted its stake in shares of Unity Software by 88.1% during the third quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock worth $29,000 after buying an additional 341 shares during the period. Finally, Allworth Financial LP increased its position in Unity Software by 28.4% in the 2nd quarter. Allworth Financial LP now owns 1,865 shares of the company’s stock valued at $45,000 after acquiring an additional 412 shares during the period. 73.46% of the stock is currently owned by hedge funds and other institutional investors.

About Unity Software

Unity Software is a leading provider of a real-time 3D development platform that enables creators across industries to design, build and operate interactive, real-time experiences. Originally focused on the game development market, Unity’s technology now extends into sectors such as film, automotive, architecture, engineering and construction, delivering immersive content for mobile, desktop, console, augmented reality and virtual reality devices. The company’s core offering comprises a suite of authoring tools, runtime engines and cloud services that streamline the creation and deployment of interactive 3D applications.

The Unity Editor serves as the central hub where developers design scenes, script behavior and iterate on assets.