Unity Software (NYSE:U – Get Free Report) was upgraded by research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued on Thursday, Zacks reports.
U has been the subject of a number of other research reports. Oppenheimer reissued an “outperform” rating and set a $64.00 target price (up from $47.00) on shares of Unity Software in a report on Friday. BTIG Research reiterated a “buy” rating and set a $60.00 price target (up from $53.00) on shares of Unity Software in a research report on Thursday. Deutsche Bank Aktiengesellschaft upgraded Unity Software from a “hold” rating to a “buy” rating and boosted their price target for the stock from $31.00 to $50.00 in a research report on Friday, August 7th. Wedbush increased their price objective on Unity Software from $55.00 to $63.00 and gave the company an “outperform” rating in a research note on Friday. Finally, Citizens Jmp raised their price objective on Unity Software from $45.00 to $70.00 and gave the company a “market outperform” rating in a report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $56.32.
Read Our Latest Analysis on Unity Software
Unity Software Price Performance
Shares of U stock traded up $2.75 on Thursday, reaching $51.55. 23,615,425 shares of the company were exchanged, compared to its average volume of 8,798,267. Unity Software has a 1 year low of $16.78 and a 1 year high of $52.91. The company has a debt-to-equity ratio of 0.55, a quick ratio of 2.03 and a current ratio of 2.03. The business has a 50-day moving average price of $42.48 and a 200 day moving average price of $31.84. The company has a market cap of $22.69 billion, a price-to-earnings ratio of -63.65, a P/E/G ratio of 1.69 and a beta of 2.08.
Unity Software (NYSE:U – Get Free Report) last issued its quarterly earnings results on Thursday, November 5th. The company reported $0.44 earnings per share for the quarter, beating analysts’ consensus estimates of $0.03 by $0.41. Unity Software had a negative net margin of 28.97% and a positive return on equity of 4.64%. The firm had revenue of $622.09 million for the quarter, compared to analyst estimates of $567.03 million. During the same period last year, the company posted $0.20 EPS. Unity Software’s quarterly revenue was up 32.2% compared to the same quarter last year. Equities research analysts forecast that Unity Software will post 0.55 earnings per share for the current fiscal year.
Insider Buying and Selling at Unity Software
In other news, CFO Jarrod Yahes sold 26,017 shares of the business’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $45.31, for a total transaction of $1,178,830.27. Following the transaction, the chief financial officer directly owned 678,343 shares in the company, valued at $30,735,721.33. The trade was a 3.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Matthew Bromberg sold 16,383 shares of the company’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $45.31, for a total value of $742,313.73. Following the completion of the sale, the chief executive officer owned 1,541,131 shares of the company’s stock, valued at $69,828,645.61. This trade represents a 1.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 109,547 shares of company stock valued at $4,884,202. Company insiders own 0.77% of the company’s stock.
Institutional Trading of Unity Software
A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Atreides Management LP purchased a new stake in shares of Unity Software during the 2nd quarter valued at approximately $292,826,000. Resolute Advisors LLC grew its position in Unity Software by 473.3% in the second quarter. Resolute Advisors LLC now owns 4,766,219 shares of the company’s stock worth $136,219,000 after acquiring an additional 3,934,840 shares during the period. Assenagon Asset Management S.A. grew its position in Unity Software by 9,886.8% in the third quarter. Assenagon Asset Management S.A. now owns 2,645,007 shares of the company’s stock worth $108,260,000 after acquiring an additional 2,618,522 shares during the period. Renaissance Technologies LLC acquired a new stake in Unity Software during the first quarter worth $54,534,000. Finally, Avala Global LP acquired a new stake in Unity Software during the second quarter worth $62,522,000. Institutional investors and hedge funds own 73.46% of the company’s stock.
More Unity Software News
Here are the key news stories impacting Unity Software this week:
- Positive Sentiment: Q3 results beat expectations: Unity reported revenue of $622.1 million, up 32.2% year over year, and adjusted earnings of $0.44 per share. It also posted its first GAAP quarterly profit since its 2020 IPO, with net income of $122 million. Unity Q3 earnings beat estimates on Vector strength and margin gains
- Positive Sentiment: AI-driven advertising is gaining traction: Revenue from Vector, Unity’s AI-powered advertising platform, surged 126%, helping widen margins and bolstering the growth outlook. Unity Q3 earnings call highlights Vector growth and AI expansion
- Positive Sentiment: Outlook topped analyst expectations: Unity’s Q4 revenue guidance was well above consensus, with management anticipating 65%–67% growth in strategic revenue and an adjusted EBITDA margin of about 42%. Unity forecasts Q4 strategic revenue and margin
- Positive Sentiment: Analyst targets moved higher: Needham and Citizens JMP raised targets to $70; Oppenheimer and Wells Fargo raised theirs to $64, while Citigroup lifted its target to $59. Needham price-target update
- Neutral Sentiment: Takeover reports add uncertainty: Silver Lake and Saudi Arabia’s Public Investment Fund reportedly held discussions about acquiring Unity. Talks are described as early-stage, with no confirmed agreement or final terms. Silver Lake and PIF takeover approach report
- Negative Sentiment: Creator tools are a caveat: While advertising is growing rapidly, a report noted that Unity’s creator-tools business is slowing, which could temper the broader growth story if that weakness persists. Vector ads lift Unity to first GAAP profit
Unity Software Company Profile
Unity Software Inc develops software and services for creating, operating and monetizing interactive, real-time content. Its core product is the Unity engine, a development platform used to build video games and experiences for mobile devices, personal computers, consoles, augmented and virtual reality systems, and other platforms.
The company also provides tools and services that support the development and operation of interactive applications, including collaboration and cloud-based development tools, multiplayer and voice communication capabilities, analytics, advertising, and in-app monetization solutions.
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