Unity Software (NYSE:U) Stock Gets Price Target Bump from Wedbush

Key Points

• Wedbush raised Unity Software’s price target from $50 to $55 while maintaining an “outperform” rating, implying approximately 17.9% upside from the reported $46.66 share price.
• Analyst sentiment has strengthened, with Deutsche Bank and Bank of America upgrading the stock to “buy.” Unity has an overall “Moderate Buy” consensus rating and an average price target of $48.01.
• Unity reported quarterly revenue of $546.47 million, up 24% year over year, and adjusted earnings of $0.28 per share, beating analysts’ expectations; however, the company still posted a negative net margin of 28.97%.

Unity Software (NYSE:U - Get Free Report) had its price objective hoisted by analysts at Wedbush from $50.00 to $55.00 in a report issued on Wednesday, Benzinga reports. The firm currently has an "outperform" rating on the stock. Wedbush's price target would indicate a potential upside of 17.88% from the company's current price.

Several other equities analysts have also commented on U. Deutsche Bank Aktiengesellschaft raised Unity Software from a "hold" rating to a "buy" rating and upped their target price for the company from $31.00 to $50.00 in a report on Friday, August 7th. Bank of America raised Unity Software from a "neutral" rating to a "buy" rating and raised their price target for the stock from $30.00 to $50.00 in a report on Friday, August 7th. Wall Street Zen raised Unity Software from a "hold" rating to a "buy" rating in a report on Monday. BTIG Research boosted their price objective on Unity Software from $51.00 to $53.00 and gave the company a "buy" rating in a research report on Friday, October 9th. Finally, Morgan Stanley upped their price objective on Unity Software from $50.00 to $55.00 and gave the stock an "overweight" rating in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Unity Software currently has an average rating of "Moderate Buy" and an average target price of $48.01.

Unity Software Price Performance

Shares of NYSE:U opened at $46.66 on Wednesday. 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 has a fifty-two week low of $16.78 and a fifty-two week high of $52.15. The firm has a 50-day simple moving average of $43.46 and a 200 day simple moving average of $33.02. The company has a market cap of $20.53 billion, a PE ratio of -34.31, a P/E/G ratio of 2.04 and a beta of 2.11.

Unity Software (NYSE:U - Get Free Report) last released 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 firm had revenue of $546.47 million for the quarter, compared to analyst estimates of $514.72 million. During the same quarter in the prior year, the business earned $0.18 earnings per share. Unity Software's quarterly revenue was up 24.0% on a year-over-year basis. On average, sell-side analysts anticipate that Unity Software will post 0.55 EPS for the current year.

Insider Activity

In related news, CFO Jarrod Yahes sold 26,017 shares of Unity Software 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 sale, the chief financial officer directly owned 678,343 shares in the company, valued at $30,735,721.33. This trade represents a 3.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 business's 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 transaction, the senior vice president directly owned 308,413 shares of the company's stock, valued at $13,977,277.16. The trade was a 0.33% decrease in their ownership of the stock. 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 sold 109,547 shares of company stock worth $4,884,202 in the last 90 days. 0.77% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Unity Software

A number of hedge funds have recently made changes to their positions in the business. Krilogy Financial LLC boosted its position in shares of Unity Software by 44.9% during the third quarter. Krilogy Financial LLC now owns 27,434 shares of the company's stock worth $1,123,000 after buying an additional 8,507 shares during the period. NorthCrest Asset Manangement LLC grew its holdings in Unity Software by 45.9% in the 3rd quarter. NorthCrest Asset Manangement LLC now owns 23,748 shares of the company's stock worth $972,000 after buying an additional 7,472 shares in the last quarter. Riversedge Advisors LLC bought a new position in Unity Software in the 3rd quarter worth approximately $331,000. Wedmont Private Capital increased its position in Unity Software by 20.8% in the 3rd quarter. Wedmont Private Capital now owns 21,954 shares of the company's stock valued at $899,000 after acquiring an additional 3,775 shares during the period. Finally, GAMMA Investing LLC increased its position in Unity Software by 31.8% in the 3rd quarter. GAMMA Investing LLC now owns 7,789 shares of the company's stock valued at $319,000 after acquiring an additional 1,879 shares during the period. Institutional investors own 73.46% of the company's stock.

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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