Unity Software (NYSE:U) Stock Bumped Up to Buy by Wall Street Zen

Key Points

• Wall Street Zen upgraded Unity Software from “hold” to “buy,” joining a broadly positive analyst view. The stock has a consensus “Moderate Buy” rating and a $45.16 price target.
• Unity reported quarterly revenue of $546.47 million, up 24% year over year and above estimates, while earnings per share of $0.28 exceeded the expected loss of $0.11.
• Institutional ownership stands at 73.46%, with several major investors adding positions, although insiders sold roughly $4.88 million of shares over the past 90 days.

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

Several other research firms have also recently commented on U. Needham & Company LLC lifted their target price on Unity Software from $40.00 to $54.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Piper Sandler raised their price target on Unity Software from $45.00 to $55.00 and gave the company an "overweight" rating in a report on Friday, August 7th. Oppenheimer lifted their price objective on Unity Software from $38.00 to $47.00 and gave the stock an "outperform" rating in a research report on Friday, August 7th. Zacks Research raised Unity Software from a "hold" rating to a "strong-buy" rating in a report on Monday, July 13th. Finally, Citizens Jmp upped 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 report on Friday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $45.16.

Unity Software Price Performance

NYSE:U opened at $41.58 on Friday. 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 firm has a market cap of $18.30 billion, a PE ratio of -30.57, a price-to-earnings-growth ratio of 1.81 and a beta of 2.06. Unity Software has a 12 month low of $16.78 and a 12 month high of $52.15. The company's 50-day moving average price is $40.36 and its two-hundred day moving average price is $30.85.

Unity Software (NYSE:U - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.28 earnings per share for the quarter, topping the consensus estimate 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 company had revenue of $546.47 million during the quarter, compared to analyst estimates of $514.72 million. During the same quarter last year, the business posted $0.18 earnings per share. The company's revenue was up 24.0% on a year-over-year basis. On average, equities analysts anticipate that Unity Software will post 0.55 EPS for the current fiscal year.

Insider Buying and Selling

In related news, COO Alexander Blum sold 43,556 shares of Unity Software stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $43.51, for a total transaction of $1,895,121.56. Following the transaction, the chief operating officer owned 661,855 shares of the company's stock, valued at $28,797,311.05. This trade represents a 6.17% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jarrod Yahes sold 26,017 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 transaction of $1,178,830.27. Following the transaction, the chief financial officer owned 678,343 shares of the company's stock, valued at approximately $30,735,721.33. This represents a 3.69% decrease in their position. 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 have sold a total of 109,547 shares of company stock worth $4,884,202 in the last ninety days. 0.77% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Atreides Management LP bought a new stake in Unity Software during the 2nd quarter worth about $292,826,000. Norges Bank bought a new position in Unity Software in the fourth quarter valued at approximately $230,285,000. Resolute Advisors LLC raised its stake in shares of 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 purchasing an additional 3,934,840 shares in the last quarter. Renaissance Technologies LLC acquired a new stake in shares of Unity Software in the 1st quarter valued at approximately $54,534,000. Finally, Avala Global LP acquired a new stake in shares of Unity Software in the 2nd quarter valued at approximately $62,522,000. 73.46% of the stock is owned by institutional investors and hedge funds.

More Unity Software News

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

• Positive Sentiment: Unity announced immediate, day-one engine support for Meta’s next-generation VR Glasses, which are expected to launch in spring 2027. Developers can begin building and testing experiences now using Unity’s updated plugins, advanced rendering tools, Meta AI integrations, and mixed-reality APIs. This could expand Unity’s addressable developer ecosystem and strengthen its position as a preferred platform for immersive-content creation. Unity Delivers Day-One Support for Meta VR Glasses
• Positive Sentiment: Trading activity showed heavy call-option buying in Unity, suggesting that some options traders are positioning for further upside or increased volatility. However, options activity is speculative and does not necessarily reflect long-term fundamental conviction. Unity Software Stock Sees Heavy Call Option Buying
• Neutral Sentiment: Unity initially gained following Meta’s VR hardware announcement, as investors viewed the device launch as a potential catalyst for new developer demand and immersive-content creation. Subsequent reports indicate that the initial optimism was not sustained. Unity Software Stock Surges on Meta’s New VR and AI Hardware Push
• Negative Sentiment: Unity shares declined more sharply than the broader market after Meta unveiled AI-powered game-building tools. Investors may be concerned that Meta’s expanding creation tools could reduce reliance on third-party engines or intensify competition in game and VR development. Gaming Stocks Fall After Meta Unveils AI Game-Building Tools

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.

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