10,245,819 Shares in Unity Software Inc. $U Acquired by Atreides Management LP

Key Points

• Atreides Management LP acquired 10.25 million Unity Software shares worth approximately $292.8 million, making Unity about 2.0% of its portfolio and its ninth-largest holding. The position represented roughly 2.33% of Unity’s outstanding shares.
• Analyst sentiment is generally positive: Unity has a consensus “Moderate Buy” rating and an average price target of $45.16, with Benchmark upgrading the stock to “Buy” and setting a $50 target.
• Unity’s latest quarterly results exceeded expectations, with revenue rising 24% year over year to $546.5 million and adjusted EPS of $0.28 versus consensus estimates for a $0.11 loss.

Atreides Management LP purchased a new position in shares of Unity Software Inc. (NYSE:U - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm purchased 10,245,819 shares of the company's stock, valued at approximately $292,826,000. Unity Software accounts for about 2.0% of Atreides Management LP's investment portfolio, making the stock its 9th largest position. Atreides Management LP owned approximately 2.33% of Unity Software at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in the stock. Vanguard Group Inc. grew its stake in shares of Unity Software by 2.9% during the 4th quarter. Vanguard Group Inc. now owns 35,553,296 shares of the company's stock valued at $1,570,389,000 after buying an additional 996,685 shares during the period. Wellington Management Group LLP raised its position in shares of Unity Software by 58.7% in the 3rd 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 raised its position in shares of Unity Software by 5.9% in the 4th 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 position in shares of Unity Software in the 4th quarter worth $230,285,000. Finally, Ameriprise Financial Inc. boosted its holdings in 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 last quarter. Institutional investors and hedge funds own 73.46% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have issued reports on U shares. Benchmark raised Unity Software from a "hold" rating to a "buy" rating and set a $50.00 price target for the company in a research report on Friday, August 7th. Barclays lifted their price objective on Unity Software from $28.00 to $33.00 and gave the company an "equal weight" rating in a research note on Friday, May 8th. Raymond James Financial began coverage on Unity Software in a report on Monday, June 29th. They set a "market perform" rating for the company. Weiss Ratings raised shares of Unity Software from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, August 4th. Finally, Wall Street Zen raised shares of Unity Software from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Unity Software currently has a consensus rating of "Moderate Buy" and an average price target of $45.16.

Unity Software Stock Performance

NYSE:U opened at $44.15 on Thursday. The firm has a 50-day moving average of $34.53 and a two-hundred day moving average of $27.50. The company has a debt-to-equity ratio of 0.55, a current ratio of 2.03 and a quick ratio of 2.03. The stock has a market cap of $19.43 billion, a P/E ratio of -32.46, a PEG ratio of 1.97 and a beta of 2.04. Unity Software Inc. has a 1-year low of $16.78 and a 1-year high of $52.15.

Unity Software (NYSE:U - Get Free Report) last announced its earnings results 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. Unity Software had a positive return on equity of 4.64% and a negative net margin of 28.97%.The business had revenue of $546.47 million for the quarter, compared to analyst estimates of $514.72 million. During the same period in the previous year, the company earned $0.18 earnings per share. The company's revenue for the quarter was up 24.0% compared to the same quarter last year. On average, research analysts expect that Unity Software Inc. will post 0.55 earnings per share for the current fiscal year.

Insider Buying and Selling at Unity Software

In other Unity Software news, SVP Rebecca Berenice Boyden sold 1,032 shares of the company's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $45.32, for a total value of $46,770.24. Following the transaction, the senior vice president directly owned 308,413 shares of the company's stock, valued at $13,977,277.16. This represents a 0.33% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jarrod Yahes sold 26,017 shares of the 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 transaction, the chief financial officer owned 678,343 shares of the company's stock, valued at approximately $30,735,721.33. This trade represents a 3.69% 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. Insiders sold a total of 43,432 shares of company stock worth $1,967,914 in the last 90 days. 0.77% of the stock is owned by corporate insiders.

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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