Capital International Investors Reduces Position in Unity Software Inc. $U

Key Points

• Capital International Investors reduced its stake in Unity Software by 10.1% in the fourth quarter, selling about 2.05 million shares. The fund still held 18.37 million shares valued at roughly $811.4 million, or about 4.29% of the company.
• Unity Software shares were down 0.1% at $29.15, with the stock trading below its 200-day moving average of $31.07. The company has a market cap of $12.72 billion and a 52-week range of $16.78 to $52.15.
• Analysts remain mixed but generally constructive, with a Moderate Buy consensus and an average price target of $37.71. Recent target changes included raises from Wells Fargo, Barclays, and Piper Sandler, while Citigroup trimmed its target to $40.

Capital International Investors cut its holdings in shares of Unity Software Inc. (NYSE:U - Free Report) by 10.1% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 18,370,198 shares of the company's stock after selling 2,054,197 shares during the quarter. Capital International Investors owned approximately 4.29% of Unity Software worth $811,421,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also added to or reduced their stakes in U. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Unity Software by 5.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 813,176 shares of the company's stock valued at $15,930,000 after purchasing an additional 45,481 shares during the last quarter. Focus Partners Wealth purchased a new stake in Unity Software during the first quarter valued at about $260,000. Northwestern Mutual Wealth Management Co. lifted its holdings in Unity Software by 28.9% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 5,542 shares of the company's stock valued at $134,000 after purchasing an additional 1,241 shares during the last quarter. California Public Employees Retirement System increased its position in shares of Unity Software by 11.3% during the second quarter. California Public Employees Retirement System now owns 520,774 shares of the company's stock valued at $12,603,000 after buying an additional 53,015 shares during the period. Finally, Sei Investments Co. increased its position in shares of Unity Software by 1,135.6% during the second quarter. Sei Investments Co. now owns 224,715 shares of the company's stock valued at $5,438,000 after buying an additional 206,529 shares during the period. 73.46% of the stock is owned by hedge funds and other institutional investors.

Unity Software Stock Down 0.1%

U stock opened at $29.15 on Monday. The company has a current ratio of 1.95, a quick ratio of 1.95 and a debt-to-equity ratio of 0.56. The company's 50 day moving average is $25.59 and its 200 day moving average is $31.07. The stock has a market cap of $12.72 billion, a price-to-earnings ratio of -18.56, a price-to-earnings-growth ratio of 3.73 and a beta of 2.06. Unity Software Inc. has a 1-year low of $16.78 and a 1-year high of $52.15.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Citigroup decreased their price target on Unity Software from $43.00 to $40.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. Wells Fargo & Company upped their price target on Unity Software from $29.00 to $35.00 and gave the company an "overweight" rating in a research report on Friday, May 8th. Barclays upped their price target on Unity Software from $28.00 to $33.00 and gave the company an "equal weight" rating in a research report on Friday, May 8th. Bank of America upped their price target on Unity Software from $19.00 to $21.00 and gave the company a "neutral" rating in a research report on Friday, March 27th. Finally, Piper Sandler assumed coverage on Unity Software in a research report on Tuesday, June 2nd. They set an "overweight" rating and a $40.00 price target on the stock. One equities research analyst has 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. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $37.71.

Insider Buying and Selling

In related news, CFO Jarrod Yahes sold 24,021 shares of the company's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $27.18, for a total value of $652,890.78. Following the transaction, the chief financial officer directly owned 704,360 shares in the company, valued at approximately $19,144,504.80. This represents a 3.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Alexander Blum sold 19,009 shares of the company's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $27.18, for a total transaction of $516,664.62. Following the completion of the transaction, the chief operating officer owned 730,069 shares in the company, valued at approximately $19,843,275.42. This trade represents a 2.54% 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 198,321 shares of company stock valued at $5,390,783 in the last 90 days. 0.77% of the stock is owned by company insiders.

Unity Software 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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