Arrowstreet Capital Limited Partnership Invests $5.29 Million in Unity Software Inc. $U

Key Points

• Arrowstreet Capital acquired 241,198 Unity shares worth approximately $5.29 million, representing a 0.06% stake. Institutional investors collectively own 73.46% of the company.
• Unity shares opened at $31.74, compared with a one-year range of $16.78 to $52.15. Analysts maintain a “Moderate Buy” consensus with an average price target of $38.27, supported by several recent target increases.
• Risks remain: Unity is unprofitable on a trailing basis, has faced valuation concerns after its rally, and insiders have sold roughly 198,321 shares worth $5.39 million over the past 90 days, primarily for tax-withholding obligations.

Arrowstreet Capital Limited Partnership acquired a new stake in Unity Software Inc. (NYSE:U - Free Report) in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 241,198 shares of the company's stock, valued at approximately $5,292,000. Arrowstreet Capital Limited Partnership owned 0.06% of Unity Software at the end of the most recent quarter.

Several other hedge funds also recently bought and sold shares of U. Massachusetts Financial Services Co. MA increased its position in shares of Unity Software by 9.5% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 2,905,820 shares of the company's stock valued at $128,350,000 after purchasing an additional 252,648 shares during the last quarter. FengHe Fund Management Pte. Ltd. lifted its position in Unity Software by 287.0% in the 4th quarter. FengHe Fund Management Pte. Ltd. now owns 1,732,002 shares of the company's stock worth $76,503,000 after buying an additional 1,284,400 shares during the last quarter. KBC Group NV lifted its position in Unity Software by 511.9% in the 4th quarter. KBC Group NV now owns 51,960 shares of the company's stock worth $2,295,000 after buying an additional 43,468 shares during the last quarter. Vanguard Group Inc. boosted its stake in Unity Software by 2.9% in the fourth quarter. Vanguard Group Inc. now owns 35,553,296 shares of the company's stock worth $1,570,389,000 after buying an additional 996,685 shares in the last quarter. Finally, Nano Cap New Millennium Growth Fund L P purchased a new stake in Unity Software in the fourth quarter worth approximately $3,710,000. Hedge funds and other institutional investors own 73.46% of the company's stock.

Unity Software Price Performance

Shares of Unity Software stock opened at $31.74 on Monday. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.95 and a quick ratio of 1.95. Unity Software Inc. has a one year low of $16.78 and a one year high of $52.15. The business's 50 day simple moving average is $29.19 and its two-hundred day simple moving average is $26.76. The stock has a market capitalization of $13.86 billion, a P/E ratio of -20.22, a price-to-earnings-growth ratio of 3.75 and a beta of 2.05.

Key Headlines Impacting Unity Software

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

• Positive Sentiment: Analyst raises price target: Piper Sandler reaffirmed its “overweight” rating and raised its price target to $45 from $40, indicating continued confidence in Unity’s potential upside. Benzinga analyst rating report
• Positive Sentiment: Strong Buy designation: Unity was added to Zacks’ Rank #1 (Strong Buy) list of growth stocks, which could support investor interest and reinforce the bullish view ahead of earnings. Best Growth Stocks to Buy for July 31st
• Positive Sentiment: Potential earnings beat: Zacks said Unity has factors that could support earnings growth and a likely beat in its upcoming quarterly report. The company is expected to report results shortly, making earnings expectations an important near-term catalyst. Unity Software Earnings Expected to Grow
• Neutral Sentiment: Investor attention is elevated: Unity has been among the stocks attracting significant attention from Zacks users, potentially increasing trading activity, but the coverage does not provide a new fundamental catalyst by itself. Is Trending Stock Unity Software a Buy Now
• Negative Sentiment: Valuation concerns are resurfacing: GuruFocus characterized Unity as overvalued following its recent rally. That assessment may be encouraging profit-taking, particularly while the company remains unprofitable on a trailing basis. Is Unity Software Overvalued After Rally
• Negative Sentiment: Growth-stock rotation remains a headwind: Broader market commentary points to investors favoring defensive and value-oriented stocks over growth shares. That environment can pressure higher-volatility names such as Unity even when company-specific analyst sentiment is positive.

Analyst Ratings Changes

A number of research analysts have commented on the stock. Raymond James Financial started coverage on shares of Unity Software in a research report on Monday, June 29th. They set a "market perform" rating on the stock. Zacks Research raised shares of Unity Software from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 13th. Wedbush increased their target price on shares of Unity Software from $32.00 to $36.00 and gave the company an "outperform" rating in a report on Wednesday, July 22nd. Needham & Company LLC increased their target price on shares of Unity Software from $35.00 to $40.00 and gave the company a "buy" rating in a report on Friday, May 8th. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Unity Software in a research report on Friday, July 17th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $38.27.

Insider Activity

In related news, CFO Jarrod Yahes sold 24,021 shares of the company's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $27.18, for a total transaction of $652,890.78. Following the completion of the sale, the chief financial officer directly owned 704,360 shares in the company, valued at $19,144,504.80. This represents a 3.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Mark Barrysmith sold 13,247 shares of the company's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $27.18, for a total transaction of $360,053.46. Following the sale, the chief accounting officer owned 370,654 shares of the company's stock, valued at $10,074,375.72. This represents a 3.45% 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 have sold 198,321 shares of company stock valued at $5,390,783. Corporate insiders own 0.77% of the company's stock.

Unity Software Company Profile

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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