Ariose Capital Management Ltd Has $40.84 Million Holdings in Unity Software Inc. $U

Key Points

• Ariose Capital increased its stake in Unity Software by 96.1% in Q4 to 924,583 shares worth $40.84 million, making Unity 13.7% of the fund and its 3rd largest position; overall institutional ownership is about 73.46%.
• Analysts have trimmed price targets (Goldman to $27, UBS to $32) but the consensus remains a "Moderate Buy" with an average target of $37.41.
• Unity beat the quarter with EPS $0.24 (vs. $0.20 expected) and revenue $503.1M, yet the company is still unprofitable (negative net margin and ROE), while insiders have sold roughly 41,684 shares (~$773k) in the last three months.

Ariose Capital Management Ltd raised its holdings in shares of Unity Software Inc. (NYSE:U - Free Report) by 96.1% in the 4th quarter, according to its most recent 13F filing with the SEC. The fund owned 924,583 shares of the company's stock after acquiring an additional 452,983 shares during the period. Unity Software makes up 13.7% of Ariose Capital Management Ltd's holdings, making the stock its 3rd largest position. Ariose Capital Management Ltd owned 0.22% of Unity Software worth $40,839,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Wellington Management Group LLP increased 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 valued at $729,284,000 after buying an additional 6,734,285 shares in the last quarter. Massachusetts Financial Services Co. MA bought a new position in Unity Software during the 3rd quarter worth about $106,233,000. Duquesne Family Office LLC bought a new position in Unity Software during the 2nd quarter worth about $42,932,000. Ameriprise Financial Inc. increased its holdings in Unity Software by 37.8% during the 2nd quarter. Ameriprise Financial Inc. now owns 4,628,328 shares of the company's stock worth $112,006,000 after purchasing an additional 1,270,798 shares in the last quarter. Finally, 12 West Capital Management LP bought a new position in Unity Software during the 3rd quarter worth about $38,639,000. Institutional investors own 73.46% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Unity Software in a report on Wednesday, January 21st. Wall Street Zen cut Unity Software from a "buy" rating to a "hold" rating in a report on Saturday, March 28th. The Goldman Sachs Group lowered their target price on Unity Software from $47.00 to $27.00 and set a "neutral" rating for the company in a report on Thursday, February 12th. Citigroup lowered their target price on Unity Software from $52.00 to $43.00 and set a "buy" rating for the company in a report on Thursday, February 12th. Finally, UBS Group lowered their target price on Unity Software from $46.00 to $32.00 and set a "neutral" rating for the company in a report on Tuesday, February 10th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $37.41.

Insider Activity at Unity Software

In related news, CAO Mark Barrysmith sold 10,578 shares of Unity Software stock in a transaction that occurred 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 transaction, the chief accounting officer directly owned 383,901 shares of the company's stock, valued at $6,937,091.07. This trade represents a 2.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Alexander Blum sold 10,164 shares of Unity Software stock in a transaction that occurred 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 have sold 41,684 shares of company stock valued at $773,350 over the last three months. 0.77% of the stock is owned by insiders.

Unity Software Stock Up 6.8%

Shares of U opened at $25.95 on Friday. Unity Software Inc. has a 12 month low of $16.78 and a 12 month high of $52.15. The firm's 50 day moving average is $20.87 and its 200-day moving average is $33.10. The stock has a market capitalization of $11.32 billion, a PE ratio of -27.03, a P/E/G ratio of 8.95 and a beta of 2.00. The company has a current ratio of 1.84, a quick ratio of 1.84 and a debt-to-equity ratio of 0.52.

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

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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