Unity Software (NYSE:U) Price Target Raised to $53.00

Key Points

• BTIG Research raised Unity Software’s price target to $53 from $51 and maintained a “buy” rating, implying 15.65% upside from the prior close. Analysts overall give the stock a “Moderate Buy” consensus with an average target of $45.66.
• Unity reported stronger-than-expected quarterly results, with EPS of $0.28 versus the consensus estimate of a $0.11 loss and revenue of $546.47 million, up 24% year over year.
• Investor sentiment is supported by Unity’s Google partnership and planned AI-powered game-creation tools, but valuation and ongoing losses remain concerns; Zacks downgraded the stock to “hold,” and insiders have sold shares recently.

Unity Software (NYSE:U - Get Free Report) had its price target lifted by research analysts at BTIG Research from $51.00 to $53.00 in a report issued on Friday, Benzinga reports. The firm presently has a "buy" rating on the stock. BTIG Research's target price indicates a potential upside of 15.65% from the stock's previous close.

Other analysts have also issued reports about the stock. Zacks Research lowered shares of Unity Software from a "strong-buy" rating to a "hold" rating in a research note on Tuesday. Weiss Ratings raised shares of Unity Software from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, August 4th. Oppenheimer restated an "outperform" rating on shares of Unity Software in a report on Thursday. Wells Fargo & Company upped their price target on shares of Unity Software from $36.00 to $48.00 and gave the stock an "overweight" rating in a research report on Friday, August 7th. Finally, Wedbush increased their price objective on shares of Unity Software from $32.00 to $36.00 and gave the company an "outperform" rating in a research note on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued 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.com, the company has a consensus rating of "Moderate Buy" and an average target price of $45.66.

Unity Software Stock Up 0.9%

Shares of NYSE:U opened at $45.83 on Friday. The business's 50 day moving average is $42.66 and its 200 day moving average is $32.42. The stock has a market cap of $20.17 billion, a P/E ratio of -33.70, a price-to-earnings-growth ratio of 1.99 and a beta of 2.11. Unity Software has a 52-week low of $16.78 and a 52-week 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, 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 positive return on equity of 4.64% and a negative net margin of 28.97%.The business had revenue of $546.47 million during the quarter, compared to analyst estimates of $514.72 million. During the same period in the previous year, the company posted $0.18 EPS. Unity Software's revenue was up 24.0% on a year-over-year basis. Sell-side analysts predict that Unity Software will post 0.55 EPS for the current year.

Insider Activity

In other Unity Software news, CFO Jarrod Yahes sold 26,017 shares of the business'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 $1,178,830.27. Following the completion of the transaction, the chief financial officer directly owned 678,343 shares in the company, valued at approximately $30,735,721.33. The trade was a 3.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 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 stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $45.32, for a total transaction of $46,770.24. Following the sale, the senior vice president directly 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. 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. Over the last three months, insiders have sold 109,547 shares of company stock valued at $4,884,202. Company insiders own 0.77% of the company's stock.

Institutional Investors Weigh In On Unity Software

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Global Retirement Partners LLC purchased a new position in Unity Software in the second quarter worth $56,000. Versant Capital Management Inc boosted its position in shares of Unity Software by 37.6% in the 2nd quarter. Versant Capital Management Inc now owns 2,041 shares of the company's stock worth $58,000 after purchasing an additional 558 shares in the last quarter. Elevation Wealth Partners LLC boosted its position in shares of Unity Software by 105.2% in the 2nd quarter. Elevation Wealth Partners LLC now owns 2,286 shares of the company's stock worth $65,000 after purchasing an additional 1,172 shares in the last quarter. Summit Securities Group LLC purchased a new position in Unity Software during the 1st quarter worth $54,000. Finally, Pacer Advisors Inc. grew its stake in Unity Software by 59.5% during the 1st quarter. Pacer Advisors Inc. now owns 2,626 shares of the company's stock worth $58,000 after buying an additional 980 shares during the last quarter. Hedge funds and other institutional investors own 73.46% of the company's stock.

Key Headlines Impacting Unity Software

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

• Positive Sentiment: Raymond James upgraded Unity to “outperform” from “market perform” and set a $54 price target. The firm cited Unity’s partnership with Google and believes the stock can continue rallying, providing a catalyst for the recent advance. Unity Software rises on back of Raymond James upgrade
• Positive Sentiment: Jefferies also raised its price target to $54 and maintained a “buy” rating. The additional analyst support reinforces the view that Unity’s improving growth outlook and artificial-intelligence strategy could justify further upside. Why Is Unity Software Stock Gaining Thursday?
• Positive Sentiment: Google and Unity are developing an AI-powered game-creation platform. The planned Playground and Unity Spark products would let users create playable games with text prompts, potentially expanding Unity’s creator base and funneling new users toward its professional engine. Google’s infrastructure and distribution could also help Unity pursue the opportunity without bearing all AI-development costs. Google, Unity launch platform to create video games from prompts
• Neutral Sentiment: Investor enthusiasm is tempered by valuation and profitability concerns. Unity remains loss-making despite recent earnings and revenue beats, while the AI platform’s commercial impact and launch timing are still unproven. Zacks Research downgraded the stock from “strong buy” to “hold,” highlighting the mixed analyst outlook. Unity Stock Still Looks Undervalued

Unity Software Company Profile

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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