Unity Software (NYSE:U) Given New $49.00 Price Target at UBS Group

Key Points

• UBS raised Unity Software’s price target to $49 from $48 while maintaining a “neutral” rating, implying approximately 24% upside from the prior close.
• Analyst sentiment is generally positive: MarketBeat reports a “Moderate Buy” consensus rating and an average target price of $48.86, supported by 17 Buy ratings and one Strong Buy.
• Unity’s latest quarterly results exceeded expectations, with adjusted EPS of $0.28 versus a projected loss of $0.11 and revenue of $546.47 million, up 24% year over year.

Unity Software (NYSE:U - Get Free Report) had its price objective upped by equities research analysts at UBS Group from $48.00 to $49.00 in a report released on Wednesday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. UBS Group's target price would suggest a potential upside of 24.31% from the stock's previous close.

U has been the subject of several other research reports. Wells Fargo & Company increased their price target on Unity Software from $48.00 to $53.00 and gave the company an "overweight" rating in a research note on Monday, October 12th. Weiss Ratings raised Unity Software from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Tuesday, August 4th. Wall Street Zen upgraded Unity Software from a "hold" rating to a "buy" rating in a report on Monday, October 12th. HSBC upgraded Unity Software from a "hold" rating to a "buy" rating and set a $47.10 target price on the stock in a report on Friday, August 7th. Finally, Zacks Research downgraded shares of Unity Software from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, October 6th. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $48.86.

Unity Software Price Performance

Shares of NYSE U traded down $0.68 during mid-day trading on Wednesday, hitting $39.42. 7,943,330 shares of the stock traded hands, compared to its average volume of 12,523,966. The company has a market cap of $17.35 billion, a PE ratio of -28.98, a price-to-earnings-growth ratio of 1.79 and a beta of 2.11. Unity Software has a twelve month low of $16.78 and a twelve month high of $52.15. The company has a debt-to-equity ratio of 0.55, a current ratio of 2.03 and a quick ratio of 2.03. The firm has a 50 day simple moving average of $43.04 and a two-hundred day simple moving average of $31.91.

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

Insiders Place Their Bets

In related news, CFO Jarrod Yahes sold 26,017 shares of the firm'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 completion of the sale, the chief financial officer owned 678,343 shares of the company's stock, valued at $30,735,721.33. This trade represents a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 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 Unity Software stock in a transaction that occurred on Tuesday, August 25th. The stock was 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 approximately $69,828,645.61. The trade was a 1.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 109,547 shares of company stock valued at $4,884,202 over the last 90 days. 0.77% of the stock is owned by company insiders.

Institutional Trading of Unity Software

Several large investors have recently modified their holdings of U. Renaissance Technologies LLC acquired a new position in shares of Unity Software during the first quarter valued at about $54,534,000. Sanders Morris Harris LLC bought a new stake in shares of Unity Software during the third quarter worth about $1,345,000. Entropy Technologies LP acquired a new stake in shares of Unity Software in the 1st quarter worth about $1,985,000. Corient Private Wealth LP raised its holdings 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 worth $1,392,000 after acquiring an additional 32,135 shares during the last quarter. Finally, HB Wealth Management LLC raised its holdings 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 worth $7,847,000 after acquiring an additional 26,762 shares during the last quarter. Institutional investors and hedge funds own 73.46% of the company's stock.

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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