Unity Software (NYSE:U) Rating Lowered to "Hold" at 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, posting $0.28 in EPS versus a $0.11 loss estimate and revenue of $546.47 million, up 24% year over year.
• The stock opened at $43.57, while insiders sold approximately $4.88 million in shares over the past 90 days, primarily to cover tax obligations from vested equity awards; institutional investors own 73.46% of the company.

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

Other research analysts also recently issued reports about the company. Citigroup lifted their target price on Unity Software from $40.00 to $48.00 and gave the stock a "buy" rating in a research note on Monday, August 10th. Raymond James Financial assumed coverage on Unity Software in a report on Monday, June 29th. They set a "market perform" rating for the company. Bank of America raised shares of Unity Software from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $30.00 to $50.00 in a research report on Friday, August 7th. Zacks Research upgraded shares of Unity Software from a "hold" rating to a "strong-buy" rating in a report on Monday, July 13th. Finally, Deutsche Bank Aktiengesellschaft raised shares of Unity Software from a "hold" rating to a "buy" rating and increased their price objective for the company from $31.00 to $50.00 in a research report on Friday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Unity Software presently has a consensus rating of "Moderate Buy" and a consensus target price of $45.16.

Unity Software Stock Down 0.1%

Unity Software stock opened at $43.57 on Friday. The firm has a market capitalization of $19.17 billion, a PE ratio of -32.04, a P/E/G ratio of 1.91 and a beta of 2.11. The company's 50-day moving average is $41.58 and its 200-day moving average is $31.60. Unity Software has a fifty-two week low of $16.78 and a fifty-two week 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.

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

Insider Transactions at Unity Software

In other Unity Software news, SVP Rebecca Boyden sold 1,032 shares of the stock in a transaction on 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. This trade represents a 0.33% 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 value of $1,178,830.27. Following the transaction, the chief financial officer 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. 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.

Hedge Funds Weigh In On Unity Software

A number of hedge funds have recently bought and sold shares of the business. Atreides Management LP acquired a new position in shares of Unity Software during the 2nd quarter worth approximately $292,826,000. Resolute Advisors LLC increased its stake in Unity Software by 473.3% during the 2nd quarter. Resolute Advisors LLC now owns 4,766,219 shares of the company's stock worth $136,219,000 after acquiring an additional 3,934,840 shares during the period. Dimensional Fund Advisors LP raised its holdings in Unity Software by 52.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,245,014 shares of the company's stock valued at $93,089,000 after acquiring an additional 1,465,962 shares in the last quarter. Amundi raised its holdings in Unity Software by 4.7% in the 2nd quarter. Amundi now owns 2,334,695 shares of the company's stock valued at $66,726,000 after acquiring an additional 105,268 shares in the last quarter. Finally, Avala Global LP bought a new stake in shares of Unity Software during the 2nd quarter valued at $62,522,000. 73.46% of the stock is owned by institutional investors.

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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