Unity Software Inc. (NYSE:U) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analysts maintain a moderately bullish view of Unity Software, with 17 buy ratings, two strong-buy ratings, three holds and one sell among 23 analysts. The average 12-month price target is $45.16.
• Unity’s latest quarterly results exceeded expectations, with EPS of $0.28 versus a projected loss of $0.11 and revenue of $546.47 million, up 24% year over year.
• Shares opened at $40.89 after declining 2.9%; company insiders have sold $4.88 million worth of stock over the past 90 days, while institutional investors own 73.46% of outstanding shares.

Unity Software Inc. (NYSE:U - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the twenty-three analysts that are covering the firm, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating, seventeen have given a buy rating and two have issued a strong buy rating on the company. The average 12 month target price among analysts that have covered the stock in the last year is $45.1632.

U has been the subject of several recent research reports. Barclays boosted their price objective on Unity Software from $28.00 to $33.00 and gave the stock an "equal weight" rating in a report on Friday, May 8th. BTIG Research lifted their price target on shares of Unity Software from $43.00 to $51.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Zacks Research raised shares of Unity Software from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 13th. UBS Group reissued an "outperform" rating on shares of Unity Software in a research note on Friday, August 7th. Finally, Wall Street Zen upgraded shares of Unity Software from a "hold" rating to a "buy" rating in a report on Saturday, August 8th.

Unity Software Stock Down 2.9%

Shares of U opened at $40.89 on Wednesday. The business's fifty day moving average price is $35.74 and its two-hundred day moving average price is $27.97. The firm has a market capitalization of $18.00 billion, a price-to-earnings ratio of -30.07, a PEG ratio of 1.84 and a beta of 2.05. Unity Software has a 52 week low of $16.78 and a 52 week high of $52.15. The company has a debt-to-equity ratio of 0.55, a quick ratio of 2.03 and a current ratio of 2.03.

Unity Software (NYSE:U - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.28 earnings per share for the quarter, topping analysts' consensus estimates of ($0.11) by $0.39. The company had revenue of $546.47 million during the quarter, compared to the consensus estimate of $514.72 million. Unity Software had a positive return on equity of 4.64% and a negative net margin of 28.97%.The firm's quarterly revenue was up 24.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.18 earnings per share. On average, 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 news, CEO Matthew S. Bromberg sold 16,383 shares of the stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $45.31, for a total value of $742,313.73. Following the transaction, the chief executive officer owned 1,541,131 shares of the company's stock, valued at $69,828,645.61. This represents a 1.05% decrease in their position. The transaction 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, COO Alexander Blum sold 43,556 shares of the stock in a transaction on Friday, August 28th. The shares were 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 directly 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 109,547 shares of company stock worth $4,884,202. 0.77% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Unity Software

Several hedge funds have recently added to or reduced their stakes in U. Newbridge Financial Services Group Inc. grew its position in shares of Unity Software by 12.9% during the 3rd quarter. Newbridge Financial Services Group Inc. now owns 2,696 shares of the company's stock worth $108,000 after buying an additional 308 shares during the period. Larson Financial Group LLC increased its stake in shares of Unity Software by 88.1% in the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company's stock valued at $29,000 after acquiring an additional 341 shares during the last quarter. Swiss Life Asset Management Ltd raised its position in shares of Unity Software by 3.1% in the 4th quarter. Swiss Life Asset Management Ltd now owns 14,861 shares of the company's stock valued at $656,000 after acquiring an additional 449 shares during the period. Captrust Financial Advisors raised its position in shares of Unity Software by 2.1% in the 2nd quarter. Captrust Financial Advisors now owns 22,330 shares of the company's stock valued at $540,000 after acquiring an additional 462 shares during the period. Finally, Cibc World Market Inc. boosted its stake in Unity Software by 7.7% during the 4th quarter. Cibc World Market Inc. now owns 6,974 shares of the company's stock worth $308,000 after acquiring an additional 496 shares during the last quarter. Institutional investors and hedge funds own 73.46% of the company's stock.

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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