Unity Software (NYSE:U) Stock Keeps "Outperform" Rating at Oppenheimer

Key Points

• Oppenheimer reaffirmed its “Outperform” rating on Unity Software and raised its price target from $47 to $64, implying about 21.7% upside from the cited share price. Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and a $55.45 target.
• Unity reported quarterly revenue of $622.1 million, up 32.2% year over year, and EPS of $0.44, both above estimates. AI-powered advertising helped drive results, while the company’s creator-tools business remains a concern.
• Shares rose 7.7% to $52.57 in Friday trading. Reports of potential acquisition talks with Silver Lake and Saudi Arabia’s Public Investment Fund have also drawn attention, though discussions are preliminary and no deal is confirmed.

Unity Software (NYSE:U - Get Free Report)'s stock had its "outperform" rating reaffirmed by Oppenheimer in a report issued on Friday, Benzinga reports. They currently have a $64.00 price target on the stock, up from their previous price target of $47.00. Oppenheimer's price target would indicate a potential upside of 21.74% from the company's current price.

A number of other research analysts also recently issued reports on U. The Goldman Sachs Group reiterated a "neutral" rating and set a $62.00 target price on shares of Unity Software in a research report on Friday. Raymond James Financial reiterated an "outperform" rating and set a $60.00 price objective on shares of Unity Software in a report on Thursday. Citizens Jmp increased their price objective on shares of Unity Software from $45.00 to $70.00 and gave the stock a "market outperform" rating in a research report on Friday. Deutsche Bank Aktiengesellschaft upgraded Unity Software from a "hold" rating to a "buy" rating and raised their target price for the company from $31.00 to $50.00 in a research note on Friday, August 7th. Finally, HSBC raised Unity Software from a "hold" rating to a "buy" rating and set a $47.10 target price for the company in a research report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $55.45.

Unity Software Trading Up 7.7%

Unity Software stock traded up $3.77 during trading hours on Friday, reaching $52.57. 12,940,246 shares of the company's stock were exchanged, compared to its average volume of 12,747,844. 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's 50 day simple moving average is $42.32 and its 200 day simple moving average is $31.79. Unity Software has a twelve month low of $16.78 and a twelve month high of $52.60. The firm has a market capitalization of $23.14 billion, a PE ratio of -38.59, a PEG ratio of 1.85 and a beta of 2.08.

Unity Software (NYSE:U - Get Free Report) last announced its quarterly earnings data on Thursday, November 5th. The company reported $0.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.03 by $0.41. Unity Software had a positive return on equity of 4.64% and a negative net margin of 28.97%. The company had revenue of $622.09 million for the quarter, compared to the consensus estimate of $567.03 million. During the same period in the previous year, the business earned $0.20 EPS. The firm's revenue was up 32.2% compared to the same quarter last year. Research analysts predict that Unity Software will post 0.55 earnings per share for the current year.

Insider Buying and Selling at Unity Software

In other Unity Software news, SVP Rebecca Boyden sold 1,032 shares of the business's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $45.32, for a total transaction of $46,770.24. Following the completion of the sale, the senior vice president owned 308,413 shares in the company, valued at approximately $13,977,277.16. The trade was a 0.33% decrease in their position. 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, CEO Matthew Bromberg sold 16,383 shares of the company's stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $45.31, for a total transaction of $742,313.73. Following the completion of the sale, the chief executive officer owned 1,541,131 shares in the company, valued at $69,828,645.61. This represents a 1.05% 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. Over the last 90 days, insiders have sold 109,547 shares of company stock worth $4,884,202. Company insiders own 0.77% of the company's stock.

Institutional Trading of Unity Software

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

Key Headlines Impacting Unity Software

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

• Positive Sentiment: Unity reported Q3 revenue of $622.1 million, up 32.2% year over year and above estimates, and non-GAAP EPS of $0.44, also beating expectations. The quarter included its first GAAP profit since its 2020 IPO, with $122 million in net income. Read More..
• Positive Sentiment: Growth in AI-powered advertising is a key catalyst: Vector revenue surged 126%. Unity forecast Q4 revenue of $688 million–$696 million, well above analyst consensus, and cited continued momentum in Vector. Read More..
• Positive Sentiment: Reports say Silver Lake and Saudi Arabia’s Public Investment Fund have held talks about acquiring Unity. The prospect of a buyout has fueled interest, but discussions are preliminary and no transaction is confirmed. Read More..
• Positive Sentiment: Several firms raised their price targets after the results: Needham and Citizens JMP to $70, Wells Fargo to $64, and BTIG to $60. Read More..
• Negative Sentiment: One caution is that Unity’s creator-tools business is slowing, leaving investors to watch whether rapid advertising growth can offset weakness in that part of the business. Read More..

About Unity Software

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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