Barclays Issues Positive Forecast for Unity Software (NYSE:U) Stock Price

Key Points

• Barclays raised its price target on Unity from $28 to $33 (equal‑weight), implying about an 18.4% upside, while several other brokers also lifted targets and the consensus rating is a “Moderate Buy” with a $38.77 average price target.
• Q1 results were mixed: Unity beat revenue and EPS estimates (roughly $503M revenue; $0.24 EPS vs $0.20 est) and management highlighted strong ad‑revenue and AI momentum, but the quarter included a one‑time $279M impairment and recent insider selling.

Unity Software (NYSE:U - Get Free Report) had its price target upped by equities research analysts at Barclays from $28.00 to $33.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Barclays's price objective would indicate a potential upside of 18.43% from the company's previous close.

U has been the subject of a number of other reports. Needham & Company LLC boosted their price objective on Unity Software from $35.00 to $40.00 and gave the stock a "buy" rating in a research report on Friday. Citizens Jmp reiterated a "market outperform" rating and issued a $37.00 price target on shares of Unity Software in a research note on Friday, March 27th. Citigroup lowered their price target on shares of Unity Software from $43.00 to $40.00 and set a "buy" rating for the company in a report on Thursday, April 30th. Morgan Stanley increased their price objective on shares of Unity Software from $30.00 to $32.00 and gave the company an "overweight" rating in a research report on Friday, March 27th. Finally, Benchmark restated a "hold" rating on shares of Unity Software in a report on Monday, February 2nd. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $38.77.

Unity Software Stock Up 4.2%

Shares of Unity Software stock traded up $1.14 during trading hours on Friday, reaching $27.87. 6,131,294 shares of the company were exchanged, compared to its average volume of 16,463,900. The firm has a market cap of $12.16 billion, a PE ratio of -29.07, a PEG ratio of 10.05 and a beta of 2.04. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.84 and a current ratio of 1.84. Unity Software has a 1 year low of $16.78 and a 1 year high of $52.15. The stock's fifty day moving average is $22.06 and its 200 day moving average is $32.57.

Unity Software (NYSE:U - Get Free Report) last released its earnings results on Wednesday, February 11th. The company reported $0.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.20 by $0.04. Unity Software had a negative return on equity of 4.76% and a negative net margin of 21.77%.The firm had revenue of $503.09 million during the quarter, compared to analyst estimates of $490.64 million. During the same period last year, the business posted ($0.30) earnings per share. Unity Software's revenue was up 10.1% compared to the same quarter last year. As a group, equities research analysts forecast that Unity Software will post 0.13 earnings per share for the current year.

Insider Activity at Unity Software

In other news, CAO Mark Barrysmith sold 10,578 shares of the company's stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total value of $191,144.46. Following the completion of the transaction, the chief accounting officer owned 383,901 shares in the company, valued at approximately $6,937,091.07. This represents a 2.68% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, COO Alexander Blum sold 10,164 shares of the stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total transaction of $183,663.48. Following the completion of the transaction, the chief operating officer directly owned 550,966 shares in the company, valued at $9,955,955.62. This trade represents a 1.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 41,684 shares of company stock valued at $773,350 over the last three months. 0.77% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Unity Software

Large investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its holdings in shares of Unity Software by 2.9% in the 4th quarter. Vanguard Group Inc. now owns 35,553,296 shares of the company's stock valued at $1,570,389,000 after purchasing an additional 996,685 shares during the last quarter. Wellington Management Group LLP increased its position in Unity Software by 58.7% during the third quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company's stock worth $729,284,000 after buying an additional 6,734,285 shares during the period. Geode Capital Management LLC increased its position in Unity Software by 5.9% during the fourth quarter. Geode Capital Management LLC now owns 5,852,047 shares of the company's stock worth $258,547,000 after buying an additional 328,595 shares during the period. Norges Bank purchased a new stake in Unity Software in the fourth quarter valued at approximately $230,285,000. Finally, Ameriprise Financial Inc. boosted its holdings in shares of Unity Software by 37.8% in the second quarter. Ameriprise Financial Inc. now owns 4,628,328 shares of the company's stock valued at $112,006,000 after acquiring an additional 1,270,798 shares during the period. Institutional investors and hedge funds own 73.46% of the company's stock.

Key Stories Impacting Unity Software

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

• Positive Sentiment: Multiple analyst price‑target increases and bullish ratings — BTIG, Needham, Wells Fargo, Wedbush and UBS raised targets and reiterated buy/outperform stances, implying significant upside from current levels. These upgrades can drive demand and sentiment. Analyst Upgrades
• Positive Sentiment: AI and ad‑tech momentum: Q1 commentary and analysis highlight Vector and Unity AI driving outsized Grow (ad) revenue — Seeking Alpha notes +49% YoY Grow revenue driven by improved ROAS and new AI capabilities that support cross‑sell and sustained ad‑tech growth; management reiterated strong ad‑revenue guidance. SA: Blockbuster Q1
• Positive Sentiment: Earnings call tone and guidance supportive — Management described a “transformative” product roadmap and gave Q2 guidance calling for robust ad revenue growth (~50% YoY) and margin expansion, which underpins upside expectations. Earnings Call Summary
• Neutral Sentiment: Q1 results were mixed: revenue beat (~$508M, +17% YoY) but EPS roughly in line/marginally mixed (small miss vs some consensus). Revenue strength supports valuation, while the EPS mix tempers immediate euphoria. Press Release
• Neutral Sentiment: Unusual options activity — Large call buying was reported, which can amplify intraday moves but doesn’t change fundamentals. (Market‑generated flow.)
• Negative Sentiment: One‑time $279M impairment tied to ironSource wind‑down and Supersonic sale — this sizable charge reduces reported earnings and highlights execution/asset rationalization risks; investors should separate the nonrecurring hit from underlying operating momentum. Proactive: Impairment

About Unity Software

Unity Software is a leading provider of a real-time 3D development platform that enables creators across industries to design, build and operate interactive, real-time experiences. Originally focused on the game development market, Unity's technology now extends into sectors such as film, automotive, architecture, engineering and construction, delivering immersive content for mobile, desktop, console, augmented reality and virtual reality devices. The company's core offering comprises a suite of authoring tools, runtime engines and cloud services that streamline the creation and deployment of interactive 3D applications.

The Unity Editor serves as the central hub where developers design scenes, script behavior and iterate on assets.

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