Unity Software (NYSE:U) Given New $70.00 Price Target at Needham & Company LLC

Key Points

• Needham raised its Unity price target to $70 from $54 and maintained a buy rating, implying 44.17% upside from the prior close. Analysts’ consensus rating is “Moderate Buy,” with an average target of $52.05.
• Unity’s third-quarter results beat expectations: revenue rose 32.2% year over year to $622.1 million, and EPS was $0.44 versus the $0.03 consensus. The company also issued a strong fourth-quarter revenue outlook.
• Silver Lake and Saudi Arabia’s PIF have reportedly approached Unity about a possible acquisition, but no deal has been announced.

Unity Software (NYSE:U - Get Free Report) had its price objective boosted by Needham & Company LLC from $54.00 to $70.00 in a report issued on Friday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. Needham & Company LLC's price objective suggests a potential upside of 44.17% from the company's previous close.

Other equities research analysts have also issued research reports about the stock. Piper Sandler reaffirmed an "overweight" rating on shares of Unity Software in a report on Monday, October 5th. Citizens Jmp increased their price objective on shares of Unity Software from $37.00 to $45.00 and gave the company a "market outperform" rating in a research report on Friday, August 7th. Benchmark raised Unity Software from a "hold" rating to a "buy" rating and set a $50.00 target price on the stock in a research report on Friday, August 7th. Morgan Stanley boosted their target price on Unity Software from $50.00 to $55.00 and gave the stock an "overweight" rating in a research note on Tuesday, October 13th. Finally, Oppenheimer reaffirmed an "outperform" rating on shares of Unity Software in a report on Thursday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $52.05.

Unity Software Stock Up 14.3%

U stock opened at $48.55 on Friday. The business has a 50 day moving average of $42.32 and a 200 day moving average of $31.79. The firm has a market cap of $21.37 billion, a PE ratio of -35.70, a price-to-earnings-growth ratio of 1.85 and a beta of 2.08. Unity Software has a twelve month low of $16.78 and a twelve month high of $52.15. 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 (NYSE:U - Get Free Report) last issued its earnings results on Thursday, November 5th. The company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate 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 company had revenue of $622.09 million for the quarter, compared to analysts' expectations of $567.03 million. During the same quarter last year, the company posted $0.20 earnings per share. The firm's quarterly revenue was up 32.2% on a year-over-year basis. On average, research analysts forecast that Unity Software will post 0.55 EPS for the current fiscal year.

Insider Activity at Unity Software

In other Unity Software news, CEO Matthew S. Bromberg sold 16,383 shares of the business'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 transaction, the chief executive officer owned 1,541,131 shares of the company's stock, valued at $69,828,645.61. The trade was a 1.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 stock in a transaction 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 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 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. Insiders have sold a total of 109,547 shares of company stock valued at $4,884,202 in the last ninety days. 0.77% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Unity Software

Institutional investors have recently modified their holdings of the company. Eurizon Capital SGR S.p.A. grew its position in shares of Unity Software by 332.8% in the 3rd quarter. Eurizon Capital SGR S.p.A. now owns 11,119 shares of the company's stock valued at $452,000 after acquiring an additional 8,550 shares during the period. Austin Wealth Management LLC acquired a new stake in Unity Software during the third quarter worth about $273,000. Maryland State Retirement & Pension System lifted its stake in Unity Software by 24.0% during the third quarter. Maryland State Retirement & Pension System now owns 22,313 shares of the company's stock worth $913,000 after purchasing an additional 4,324 shares during the last quarter. Advisor Resource Council acquired a new stake in Unity Software in the third quarter valued at about $218,000. Finally, Ritholtz Wealth Management increased its position in Unity Software by 88.8% during the 3rd quarter. Ritholtz Wealth Management now owns 14,902 shares of the company's stock worth $610,000 after purchasing an additional 7,007 shares in the last quarter. 73.46% of the stock is currently owned by institutional investors.

Key Headlines Impacting Unity Software

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

• Positive Sentiment: Takeover interest may imply a premium. Reports say Silver Lake and Saudi Arabia’s Public Investment Fund (PIF) have approached Unity about a potential acquisition, with reported values ranging from roughly $21.5 billion to $25 billion. A deal could offer shareholders a premium, though no agreement has been announced. Silver Lake, Saudi Arabia’s PIF Made Takeover Approach for Unity Software
• Positive Sentiment: Q3 results substantially beat expectations. Unity reported $622.1 million in revenue, up 32.2% year over year, and adjusted EPS of $0.44, well above analyst estimates. The company also posted its first GAAP quarterly profit since its 2020 IPO, with net income of $122 million. Unity Software Inc (U) (Q3 2026) Earnings Call Highlights
• Positive Sentiment: Management issued a strong Q4 outlook. Unity guided to approximately $688 million–$696 million in revenue, above the cited analyst consensus of about $602 million. Growth in its AI-powered Vector advertising business was a key driver: Vector revenue rose 126% year over year, and the company forecast a 42% adjusted EBITDA margin. Unity forecasts Q4 strategic revenue and adjusted EBITDA margin
• Neutral Sentiment: The buyout remains uncertain. The reported approach is not a completed transaction, so investors may continue to weigh the possibility of a takeover against the risk that discussions do not lead to an offer. Silver Lake, PIF have held recent talks to buy Unity, sources say

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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