Unity Software Inc. (NYSE:U) Stock Has Consensus Price Target of $48.01 According to Analysts

Key Points

• Analysts rate Unity Software a “Moderate Buy”: Of 23 analysts, 18 recommend buying, three advise holding, one recommends selling, and one gives a strong-buy rating. The consensus 12-month price target is $48.01.
• Recent earnings exceeded expectations: Unity reported quarterly EPS of $0.28 versus the consensus estimate of a $0.11 loss, while revenue rose 24% year over year to $546.47 million.
• Shares remain volatile but institutionally supported: Unity opened at $41.28, compared with a 12-month range of $16.78 to $52.15, and institutional investors own 73.46% of the company. Insiders sold $4.88 million of stock over the past three months, primarily to cover tax obligations on vested equity.

Unity Software Inc. (NYSE:U - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the twenty-three ratings firms that are presently covering the firm, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, three have given a hold recommendation, eighteen have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price target among brokers that have covered the stock in the last year is $48.01.

Several research analysts have weighed in on U shares. BTIG Research upped their price objective on shares of Unity Software from $51.00 to $53.00 and gave the stock a "buy" rating in a report on Friday, October 9th. Deutsche Bank Aktiengesellschaft upgraded Unity Software from a "hold" rating to a "buy" rating and lifted their price target for the stock from $31.00 to $50.00 in a report on Friday, August 7th. Morgan Stanley boosted their target price on shares of Unity Software from $50.00 to $55.00 and gave the company an "overweight" rating in a research note on Tuesday, October 13th. Zacks Research cut Unity Software from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, October 6th. Finally, Wall Street Zen upgraded shares of Unity Software from a "hold" rating to a "buy" rating in a research note on Monday, October 12th.

Unity Software Stock Up 2.8%

Unity Software stock opened at $41.28 on Thursday. The firm's fifty day moving average is $43.39 and its 200 day moving average is $33.89. Unity Software has a 12-month low of $16.78 and a 12-month high of $52.15. The company has a market capitalization of $18.17 billion, a PE ratio of -30.35, a PEG ratio of 1.76 and a beta of 2.11. 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 (NYSE:U - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.11) by $0.39. The company 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 was up 24.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.18 EPS. As a group, sell-side analysts predict that Unity Software will post 0.55 EPS for the current fiscal year.

Insider Activity

In other Unity Software news, SVP Rebecca Boyden sold 1,032 shares of the company's stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $45.32, for a total value of $46,770.24. Following the transaction, the senior vice president directly owned 308,413 shares in the company, valued at $13,977,277.16. This represents a 0.33% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Matthew S. Bromberg sold 16,383 shares of the company's stock in a transaction that occurred on 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 transaction, the chief executive officer owned 1,541,131 shares in the company, valued at approximately $69,828,645.61. This trade represents a 1.05% decrease in their ownership of the stock. 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. Insiders sold a total of 109,547 shares of company stock worth $4,884,202 in the last three months. Insiders own 0.77% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in U. Quadrant Capital Group LLC bought a new position in Unity Software during the 3rd quarter worth approximately $209,000. Pinnacle Associates Ltd. purchased a new position in Unity Software during the 3rd quarter valued at $266,000. Nisa Investment Advisors LLC increased its position in shares of Unity Software by 24.5% during the third quarter. Nisa Investment Advisors LLC now owns 8,903 shares of the company's stock valued at $364,000 after buying an additional 1,750 shares during the period. Revisor Wealth Management LLC purchased a new position in shares of Unity Software during the 3rd quarter worth approximately $243,000. Finally, Investment Research Partners LLC purchased a new position in Unity Software during the third quarter valued at $203,000. Institutional investors own 73.46% of the company's stock.

Unity Software Company Profile

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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