Unity Software (NYSE:U) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Unity Software from “hold” to “buy,” adding to a generally bullish analyst outlook. The stock has a “Moderate Buy” consensus rating and an average price target of $45.66.
• Unity’s latest quarter showed 24% year-over-year revenue growth and EPS of $0.28, exceeding estimates of a $0.11 loss per share; analysts forecast full-year EPS of $0.55.
• Shares opened at $46.95, near the consensus target, while the company remains unprofitable with a negative net margin. Insiders sold roughly $4.9 million of stock over the past three months, though institutional investors own 73.46% of shares.

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

A number of other equities analysts have also commented on U. Needham & Company LLC boosted their price objective on shares of Unity Software from $40.00 to $54.00 and gave the stock a "buy" rating in a report on Friday, August 7th. UBS Group reissued an "outperform" rating on shares of Unity Software in a report on Friday, August 7th. Jefferies Financial Group raised their price objective on Unity Software from $50.00 to $54.00 and gave the company a "buy" rating in a research note on Thursday. Zacks Research downgraded Unity Software from a "strong-buy" rating to a "hold" rating in a report on Tuesday, October 6th. Finally, Piper Sandler restated an "overweight" rating on shares of Unity Software in a report on Monday, October 5th. One investment 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 issued a Sell rating to the company's stock. According to data from MarketBeat.com, Unity Software currently has a consensus rating of "Moderate Buy" and an average target price of $45.66.

Unity Software Stock Up 0.1%

Shares of NYSE:U opened at $46.95 on Monday. 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 52-week low of $16.78 and a 52-week high of $52.15. The company has a 50 day moving average of $42.97 and a two-hundred day moving average of $32.62. The company has a market capitalization of $20.66 billion, a price-to-earnings ratio of -34.52, a price-to-earnings-growth ratio of 2.05 and a beta of 2.11.

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

Insider Transactions at Unity Software

In other news, COO Alexander Blum sold 43,556 shares of Unity Software stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $43.51, for a total value of $1,895,121.56. Following the completion of the transaction, the chief operating officer owned 661,855 shares in the company, valued at approximately $28,797,311.05. This trade represents a 6.17% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 value of $1,178,830.27. Following the completion of the sale, the chief financial officer owned 678,343 shares of the company's stock, valued at $30,735,721.33. This trade represents a 3.69% 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. Insiders sold 109,547 shares of company stock valued at $4,884,202 in the last three months. Corporate insiders own 0.77% of the company's stock.

Hedge Funds Weigh In On Unity Software

Large investors have recently added to or reduced their stakes in the company. Renaissance Technologies LLC acquired a new position in shares of Unity Software in the 1st quarter valued at about $54,534,000. Entropy Technologies LP bought a new stake in shares of Unity Software during the 1st quarter valued at about $1,985,000. Corient Private Wealth LP grew its position in shares of Unity Software by 194.1% during the 2nd quarter. Corient Private Wealth LP now owns 48,691 shares of the company's stock valued at $1,392,000 after buying an additional 32,135 shares during the last quarter. HB Wealth Management LLC lifted its holdings in Unity Software by 10.8% in the second quarter. HB Wealth Management LLC now owns 274,554 shares of the company's stock worth $7,847,000 after acquiring an additional 26,762 shares during the last quarter. Finally, Susquehanna Fundamental Investments LLC lifted its holdings in Unity Software by 1,196.6% in the second quarter. Susquehanna Fundamental Investments LLC now owns 150,611 shares of the company's stock worth $4,304,000 after acquiring an additional 138,995 shares during the last quarter. 73.46% of the stock is currently owned by institutional investors.

Key Stories Impacting Unity Software

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

• Positive Sentiment: Multiple price-target increases: BTIG Research raised its target from $51 to $53 and maintained a “buy” rating. Jefferies also lifted its target from $50 to $54 with a “buy” rating, while Raymond James upgraded Unity from “market perform” to “outperform” and set a $54 target. The upgrades signal growing confidence in Unity’s 2026 growth prospects. What's Going on With Unity Software Stock on Friday?
• Positive Sentiment: Google AI partnership creates a new catalyst: Unity and Alphabet announced a platform that allows developers to create game elements through text prompts. Investors view the collaboration as a potential boost to creator productivity, Unity adoption, monetization and operating margins, while strengthening its competitive position against Roblox. Alphabet and Unity Level Up Game Development
• Positive Sentiment: Improving fundamental backdrop: Unity’s latest reported quarter featured revenue growth of 24% year over year and earnings that exceeded consensus expectations. The results, combined with renewed interest in Unity’s development tools and virtual-reality opportunities, support the bullish analyst view. Unity Stock Still Looks Undervalued Following Its Five Year Fall
• Neutral Sentiment: Valuation and execution remain important: Unity has rebounded sharply over the past year and remains loss-making on a net-margin basis. Investors will likely look for evidence that the Google partnership converts into recurring revenue, better cash generation and sustained profitability rather than only higher expectations.
• Negative Sentiment: One analyst remains cautious: Zacks Research downgraded Unity from “strong buy” to “hold,” highlighting that analyst opinion is not uniformly bullish and that the stock’s rally may leave less room for disappointment.

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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