Broad Peak Investment Advisers Pte Ltd Cuts Stock Holdings in Unity Software Inc. $U

Key Points

• Broad Peak Investment Advisers trimmed its Unity stake by 7.3% in Q4 to 2,642,765 shares (about 0.62% of Unity) — a holding worth roughly $116.7 million and the largest position in its portfolio (20.9%).
• Unity beat expectations for the quarter with $0.24 EPS vs. $0.20 expected and revenue of $503.1M (up 10.1% YoY), but it remains unprofitable with a negative net margin (-21.77%) and negative ROE.
• Analysts as a group rate Unity a “Moderate Buy” with a consensus target of $37.41 (recent targets clustered $35–$38), and institutional ownership is high at about 73.5%.

Broad Peak Investment Advisers Pte Ltd cut its stake in Unity Software Inc. (NYSE:U - Free Report) by 7.3% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 2,642,765 shares of the company's stock after selling 206,672 shares during the period. Unity Software accounts for approximately 20.9% of Broad Peak Investment Advisers Pte Ltd's portfolio, making the stock its largest position. Broad Peak Investment Advisers Pte Ltd owned 0.62% of Unity Software worth $116,731,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. Root Financial Partners LLC purchased a new position in Unity Software in the 3rd quarter worth approximately $27,000. V Square Quantitative Management LLC bought a new position in Unity Software in the 4th quarter worth $30,000. Larson Financial Group LLC lifted its stake in Unity Software by 88.1% in the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company's stock worth $29,000 after purchasing an additional 341 shares in the last quarter. IFP Advisors Inc purchased a new stake in Unity Software in the 3rd quarter worth $33,000. Finally, Aster Capital Management DIFC Ltd purchased a new stake in Unity Software in the 3rd quarter worth $38,000. 73.46% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts have recently issued reports on U shares. Needham & Company LLC restated a "buy" rating and set a $35.00 target price on shares of Unity Software in a research report on Friday, March 27th. Oppenheimer upgraded shares of Unity Software from a "market perform" rating to an "outperform" rating and set a $38.00 target price on the stock in a research report on Tuesday, February 10th. Citizens Jmp restated a "market outperform" rating and set a $37.00 target price on shares of Unity Software in a research report on Friday, March 27th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Unity Software in a report on Wednesday, January 21st. Finally, Citigroup cut their price target on shares of Unity Software from $52.00 to $43.00 and set a "buy" rating on the stock in a report on Thursday, February 12th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Unity Software currently has an average rating of "Moderate Buy" and a consensus target price of $37.41.

Unity Software Trading Up 6.8%

NYSE:U opened at $25.95 on Friday. Unity Software Inc. has a 52 week low of $16.78 and a 52 week high of $52.15. The firm has a 50 day moving average of $20.87 and a 200 day moving average of $33.10. The company has a quick ratio of 1.84, a current ratio of 1.84 and a debt-to-equity ratio of 0.52. The stock has a market capitalization of $11.32 billion, a price-to-earnings ratio of -27.03, a PEG ratio of 8.95 and a beta of 2.00.

Unity Software (NYSE:U - Get Free Report) last posted its earnings results on Wednesday, February 11th. The company reported $0.24 EPS for the quarter, beating analysts' consensus estimates of $0.20 by $0.04. Unity Software had a negative net margin of 21.77% and a negative return on equity of 4.76%. The company had revenue of $503.09 million during the quarter, compared to analysts' expectations of $490.64 million. During the same quarter in the prior year, the company posted ($0.30) earnings per share. Unity Software's revenue for the quarter was up 10.1% compared to the same quarter last year. As a group, sell-side analysts anticipate that Unity Software Inc. will post 0.13 earnings per share for the current fiscal year.

Insider Transactions at Unity Software

In other news, CFO Jarrod Yahes sold 6,205 shares of Unity Software stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $21.03, for a total transaction of $130,491.15. Following the completion of the sale, the chief financial officer directly owned 728,381 shares in the company, valued at approximately $15,317,852.43. The trade was a 0.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Mark Barrysmith sold 10,578 shares of the business's stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total transaction of $191,144.46. Following the sale, the chief accounting officer directly owned 383,901 shares in the company, valued at $6,937,091.07. This trade represents a 2.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 41,684 shares of company stock worth $773,350. Company 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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