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

Key Points

• Citigroup raised Unity Software’s price target from $40 to $48 and maintained a “buy” rating, implying approximately 13.45% upside from the stock’s cited price of $42.31.
• Analyst sentiment has broadly improved, with Deutsche Bank and HSBC upgrading Unity to “buy.” The stock has a consensus “Moderate Buy” rating and an average price target of $45.16.
• Unity shares have risen substantially from their one-year low of $16.78 but remain below the $52.15 high; insiders recently sold shares primarily to cover tax obligations tied to vested equity awards.

Unity Software (NYSE:U - Get Free Report) had its price target hoisted by research analysts at Citigroup from $40.00 to $48.00 in a report released on Monday,Benzinga reports. The firm presently has a "buy" rating on the stock. Citigroup's price target would suggest a potential upside of 13.45% from the stock's current price.

U has been the topic of several other reports. Barclays increased their target price on Unity Software from $28.00 to $33.00 and gave the stock an "equal weight" rating in a report on Friday, May 8th. Deutsche Bank Aktiengesellschaft raised shares of Unity Software from a "hold" rating to a "buy" rating and upped their price objective for the stock from $31.00 to $50.00 in a research report on Friday. HSBC upgraded shares of Unity Software from a "hold" rating to a "buy" rating and set a $47.10 price objective on the stock in a research note on Friday. Weiss Ratings upgraded shares of Unity Software from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, August 4th. Finally, UBS Group reaffirmed an "outperform" rating on shares of Unity Software in a report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $45.16.

Unity Software Price Performance

Shares of U stock traded down $0.69 during trading on Monday, hitting $42.31. The company had a trading volume of 3,628,364 shares, compared to its average volume of 13,509,037. The firm has a market capitalization of $18.62 billion, a P/E ratio of -31.08, a price-to-earnings-growth ratio of 5.09 and a beta of 2.04. Unity Software has a one year low of $16.78 and a one year high of $52.15. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.95 and a current ratio of 1.95. The stock's 50-day moving average price is $30.15 and its 200 day moving average price is $26.58.

Insider Buying and Selling

In other news, CFO Jarrod Yahes sold 24,021 shares of the business's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $27.18, for a total value of $652,890.78. Following the transaction, the chief financial officer directly owned 704,360 shares of the company's stock, valued at $19,144,504.80. The trade was a 3.30% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Matthew S. Bromberg sold 138,993 shares of Unity Software stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $27.18, for a total value of $3,777,829.74. Following the completion of the sale, the chief executive officer owned 1,557,514 shares of the company's stock, valued at approximately $42,333,230.52. The trade was a 8.19% decrease in their ownership of the stock. 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. In the last 90 days, insiders sold 198,321 shares of company stock worth $5,390,783. Corporate insiders own 0.77% of the company's stock.

Hedge Funds Weigh In On Unity Software

Institutional investors and hedge funds have recently modified their holdings of the business. Wealthfront Advisers LLC bought a new position in Unity Software in the 2nd quarter valued at about $377,000. Citizens Financial Group Inc. RI bought a new stake in Unity Software during the 2nd quarter worth approximately $2,165,000. WT Asset Management Ltd bought a new stake in Unity Software during the 2nd quarter worth approximately $5,698,000. Pallas Capital Advisors LLC bought a new position in shares of Unity Software in the second quarter valued at approximately $571,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Unity Software in the second quarter valued at approximately $6,788,000. 73.46% of the stock is currently owned by institutional investors.

Key Unity Software News

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

• Positive Sentiment: Better-than-expected Q2 results: Unity reported second-quarter revenue of $546.5 million, up 23.9% year over year, while non-GAAP earnings of $0.28 per share exceeded consensus estimates by 12.4%. The results suggest improving execution and demand for Unity’s software platform. U Q2 Deep Dive: AI-Powered Platform Drives Revenue, Margin Expansion, and Strategic Partnerships
• Positive Sentiment: AI and advertising momentum: The company’s Vector advertising platform is gaining traction, helping support stronger revenue, margins and investor confidence in Unity’s artificial-intelligence strategy. Its results and revenue outlook also beat expectations. Unity Software Shares Rally After Revenue Outlook, Results Beat Estimates
• Positive Sentiment: Analyst sentiment improved: Bank of America, HSBC and Benchmark upgraded Unity, while multiple firms raised their price targets to ranges between $45 and $55. The revisions indicate that analysts see additional upside after the earnings beat. Unity Software Upgraded at Bank of America Unity Software Upgraded at HSBC
• Positive Sentiment: Jefferies and Needham maintained Buy ratings, reinforcing the view that Unity’s earnings and AI-related growth have improved its investment outlook. Jefferies Sticks to Their Buy Rating for Unity Software
• Neutral Sentiment: Unity CEO Matthew Bromberg was appointed to Jersey Mike’s board. The appointment highlights his experience in technology and consumer businesses but is unlikely to materially affect Unity’s near-term financial results. Jersey Mike's Appoints Matt Bromberg to Board of Directors

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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