Raymond James Financial Upgrades Unity Software (NYSE:U) to "Outperform"

Key Points

• Raymond James upgraded Unity Software to “outperform” from “market perform” and set a $54 price target, implying approximately 18.7% upside from the reported share price.
• Unity’s analyst outlook is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $45.61; however, Zacks recently downgraded the stock to “hold.”
• The company exceeded quarterly expectations, reporting $0.28 adjusted EPS versus a $0.11 loss estimate and $546.5 million in revenue, up 24% year over year, though it remains unprofitable on a net-income basis.

Unity Software (NYSE:U - Get Free Report) was upgraded by stock analysts at Raymond James Financial from a "market perform" rating to an "outperform" rating in a research note issued on Thursday, Marketbeat reports. The firm presently has a $54.00 price target on the stock. Raymond James Financial's price target would suggest a potential upside of 18.67% from the stock's current price.

U has been the subject of a number of other reports. HSBC upgraded Unity Software from a "hold" rating to a "buy" rating and set a $47.10 price objective for the company in a research report on Friday, August 7th. Benchmark raised shares of Unity Software from a "hold" rating to a "buy" rating and set a $50.00 price target on the stock in a research note on Friday, August 7th. Deutsche Bank Aktiengesellschaft raised shares of 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 report on Friday, August 7th. Weiss Ratings upgraded shares of Unity Software from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, August 4th. Finally, Zacks Research downgraded shares of Unity Software from a "strong-buy" rating to a "hold" rating in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $45.61.

Unity Software Trading Up 1.2%

U stock opened at $45.51 on Thursday. The company's 50-day simple moving average is $42.41 and its 200-day simple moving average is $32.23. The company has a quick ratio of 2.03, a current ratio of 2.03 and a debt-to-equity ratio of 0.55. Unity Software has a 52-week low of $16.78 and a 52-week high of $52.15. The firm has a market cap of $20.03 billion, a P/E ratio of -33.46, a PEG ratio of 1.97 and a beta of 2.11.

Unity Software (NYSE:U - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.28 earnings per share for the quarter, beating the consensus estimate of ($0.11) by $0.39. The firm had revenue of $546.47 million during the quarter, compared to analyst estimates of $514.72 million. Unity Software had a positive return on equity of 4.64% and a negative net margin of 28.97%.Unity Software's revenue for the quarter was up 24.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.18 EPS. As a group, equities analysts forecast that Unity Software will post 0.55 EPS for the current fiscal year.

Insider Buying and Selling at Unity Software

In other news, CEO Matthew Bromberg sold 16,383 shares of the firm's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $45.31, for a total value of $742,313.73. Following the transaction, the chief executive officer directly owned 1,541,131 shares of the company's stock, valued at approximately $69,828,645.61. This trade represents a 1.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Rebecca Boyden sold 1,032 shares of the business's stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $45.32, for a total transaction of $46,770.24. Following the transaction, the senior vice president owned 308,413 shares in the company, valued at $13,977,277.16. The trade was a 0.33% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 109,547 shares of company stock valued at $4,884,202 over the last ninety days. 0.77% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Unity Software

Institutional investors have recently added to or reduced their stakes in the stock. Renaissance Technologies LLC purchased a new position in Unity Software in the first quarter worth approximately $54,534,000. Entropy Technologies LP purchased a new stake in Unity Software in the first quarter valued at $1,985,000. Corient Private Wealth LP lifted its stake in shares of Unity Software by 194.1% in the 2nd quarter. Corient Private Wealth LP now owns 48,691 shares of the company's stock valued at $1,392,000 after purchasing an additional 32,135 shares during the last quarter. HB Wealth Management LLC lifted its stake in shares of Unity Software by 10.8% in the 2nd quarter. HB Wealth Management LLC now owns 274,554 shares of the company's stock valued at $7,847,000 after purchasing an additional 26,762 shares during the last quarter. Finally, Susquehanna Fundamental Investments LLC grew its holdings in shares of Unity Software by 1,196.6% during the 2nd quarter. Susquehanna Fundamental Investments LLC now owns 150,611 shares of the company's stock worth $4,304,000 after purchasing an additional 138,995 shares during the period. Hedge funds and other institutional investors own 73.46% of the company's stock.

Trending Headlines about Unity Software

Here are the key news stories impacting Unity Software this week:

• Positive Sentiment: Google partnership expands Unity’s growth opportunity. Alphabet and Unity plan to launch an AI-powered game-creation platform, beginning with Playground and later expanding to Unity Spark. Users will be able to create playable games through natural-language prompts without coding, potentially bringing millions of new creators into Unity’s ecosystem. Google and Unity Team to Let Users Build Their Own Games
• Positive Sentiment: Investors see potential for broader adoption and margin leverage. Google’s AI models and infrastructure could help Unity offer advanced creation tools without bearing the full cost of developing and operating its own large-scale AI infrastructure. The partnership may also attract creators from competing platforms such as Roblox. Unity Software Surges on Google AI Gaming Partnership
• Neutral Sentiment: Management is targeting quality, not “AI slop.” CEO Matthew Bromberg said the company wants the Google-powered platform to reach consoles and emphasized creating meaningful games rather than low-quality AI-generated content. This could support Unity’s brand, but the commercial impact remains dependent on product adoption and monetization. Unity CEO Wants Google AI Gaming Platform to Reach Consoles
• Negative Sentiment: Zacks downgraded Unity from “strong-buy” to “hold.” The rating change may temper enthusiasm, particularly after the recent rally. Unity remains unprofitable on a net-income basis, although its latest reported quarter showed stronger-than-expected earnings and 24% year-over-year revenue growth.

About Unity Software

Unity Software Inc develops software and services for creating, operating and monetizing interactive, real-time 2D and 3D content. Its platform is widely used to build video games for mobile devices, personal computers, consoles and the web, as well as applications for industries such as automotive, architecture, engineering, construction, manufacturing and entertainment.

The company's core offering is the Unity development platform, which includes tools for graphics, physics, animation, audio, scripting and cross-platform deployment.

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