Unity Software (NYSE:U) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Unity Software from “Buy” to “Hold,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $45.16.
• Unity reported stronger-than-expected quarterly results, with revenue of $546.47 million—up 24% year over year—and earnings per share of $0.28 versus estimates of a $0.11 loss.
• Institutional investors hold 73.46% of Unity’s shares, while insiders have sold about $4.88 million worth of stock over the past 90 days, primarily to cover tax obligations from equity awards.

Unity Software (NYSE:U - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday, Wall Street Zen reports.

A number of other analysts also recently issued reports on U. Piper Sandler lifted their target price on Unity Software from $45.00 to $55.00 and gave the company an "overweight" rating in a research report on Friday, August 7th. Citigroup increased their price target on Unity Software from $40.00 to $48.00 and gave the company a "buy" rating in a research report on Monday, August 10th. BTIG Research raised their price target on Unity Software from $43.00 to $51.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Citizens Jmp raised their target price on shares of Unity Software from $37.00 to $45.00 and gave the company a "market outperform" rating in a research note on Friday, August 7th. Finally, Benchmark upgraded Unity Software from a "hold" rating to a "buy" rating and set a $50.00 price target for the company in a report on Friday, August 7th. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $45.16.

Unity Software Price Performance

NYSE U opened at $44.00 on Friday. The firm's 50 day moving average is $37.92 and its 200-day moving average is $29.22. The company has a quick ratio of 2.03, a current ratio of 2.03 and a debt-to-equity ratio of 0.55. The company has a market capitalization of $19.37 billion, a PE ratio of -32.36, a price-to-earnings-growth ratio of 1.84 and a beta of 2.06. Unity Software has a 12-month low of $16.78 and a 12-month high of $52.15.

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

Insider Transactions at Unity Software

In other news, SVP Rebecca Boyden sold 1,032 shares of the business's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $45.32, for a total value of $46,770.24. Following the completion of the sale, the senior vice president owned 308,413 shares of the company's stock, valued at approximately $13,977,277.16. The trade was a 0.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jarrod Yahes sold 26,017 shares of the company's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $45.31, for a total transaction of $1,178,830.27. Following the completion of the transaction, the chief financial officer owned 678,343 shares in the company, valued at $30,735,721.33. This trade represents a 3.69% 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. In the last 90 days, insiders sold 109,547 shares of company stock valued at $4,884,202. Corporate insiders own 0.77% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in U. California State Teachers Retirement System increased its position in shares of Unity Software by 2,948.2% in the second quarter. California State Teachers Retirement System now owns 11,202,931 shares of the company's stock worth $320,180,000 after purchasing an additional 10,835,410 shares during the period. Atreides Management LP acquired a new stake in Unity Software during the second quarter worth about $292,826,000. Wellington Management Group LLP grew its stake in Unity Software by 58.7% during the third quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company's stock worth $729,284,000 after buying an additional 6,734,285 shares in the last quarter. Norges Bank bought a new position in Unity Software in the 4th quarter valued at about $230,285,000. Finally, Resolute Advisors LLC increased its holdings in Unity Software by 473.3% in the 2nd quarter. Resolute Advisors LLC now owns 4,766,219 shares of the company's stock valued at $136,219,000 after buying an additional 3,934,840 shares during the period. Institutional investors and hedge funds own 73.46% of the company's stock.

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 media.

The company's core offerings include the Unity Engine and related development tools, which support graphics, physics, animation, audio, scripting and deployment across multiple platforms.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.