FengHe Fund Management Pte. Ltd. Buys 147,500 Shares of Unity Software Inc. (NYSE:U)

Key Points

• FengHe Fund Management Pte. Ltd. increased its stake in Unity Software Inc. by 67.6%, acquiring an additional 147,500 shares to hold a total of 365,600 shares.
• Unity Software has received mixed ratings from analysts, with Needham & Company raising their price target to $40 while Stifel Nicolaus lowered it to $28, reflecting varied expectations for the stock's performance.
• Recent insider transactions showed significant selling, with Director James M. Whitehurst selling 72,955 shares, indicating possible concerns about the company's future performance.

FengHe Fund Management Pte. Ltd. boosted its stake in shares of Unity Software Inc. (NYSE:U - Free Report) by 67.6% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 365,600 shares of the company's stock after acquiring an additional 147,500 shares during the quarter. Unity Software accounts for 2.7% of FengHe Fund Management Pte. Ltd.'s portfolio, making the stock its 14th largest position. FengHe Fund Management Pte. Ltd. owned about 0.09% of Unity Software worth $7,162,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently bought and sold shares of the company. Slate Path Capital LP acquired a new stake in shares of Unity Software in the fourth quarter valued at $62,387,000. Broad Peak Investment Advisers Pte Ltd acquired a new stake in shares of Unity Software in the first quarter valued at $47,648,000. Vanguard Group Inc. increased its stake in shares of Unity Software by 5.9% in the first quarter. Vanguard Group Inc. now owns 32,964,521 shares of the company's stock valued at $645,775,000 after buying an additional 1,841,486 shares in the last quarter. Capital International Investors boosted its holdings in Unity Software by 10.4% in the fourth quarter. Capital International Investors now owns 18,886,853 shares of the company's stock valued at $424,388,000 after acquiring an additional 1,786,032 shares during the last quarter. Finally, Ameriprise Financial Inc. boosted its holdings in Unity Software by 3,843.9% in the fourth quarter. Ameriprise Financial Inc. now owns 1,769,948 shares of the company's stock valued at $39,771,000 after acquiring an additional 1,725,070 shares during the last quarter. 73.46% of the stock is currently owned by institutional investors and hedge funds.

Unity Software Stock Performance

NYSE U traded up $0.52 on Thursday, reaching $38.46. The stock had a trading volume of 13,243,584 shares, compared to its average volume of 15,892,902. The company has a debt-to-equity ratio of 0.70, a current ratio of 2.73 and a quick ratio of 2.73. The firm has a fifty day moving average of $29.37 and a two-hundred day moving average of $24.40. Unity Software Inc. has a 1-year low of $15.33 and a 1-year high of $38.96. The company has a market cap of $16.25 billion, a P/E ratio of -36.28 and a beta of 2.32.

Unity Software (NYSE:U - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The company reported ($0.26) EPS for the quarter, missing analysts' consensus estimates of ($0.25) by ($0.01). The firm had revenue of $440.94 million during the quarter, compared to analyst estimates of $425.18 million. Unity Software had a negative net margin of 24.38% and a negative return on equity of 13.59%. The business's quarterly revenue was down 1.9% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.32) earnings per share. On average, equities research analysts anticipate that Unity Software Inc. will post -1.25 EPS for the current year.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Citigroup raised their price target on Unity Software from $29.00 to $44.00 and gave the company a "buy" rating in a report on Wednesday, July 23rd. Bank of America started coverage on Unity Software in a report on Thursday, June 26th. They set an "underperform" rating and a $15.00 target price on the stock. Needham & Company LLC raised their target price on Unity Software from $30.00 to $40.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. UBS Group raised their target price on Unity Software from $22.00 to $33.00 and gave the stock a "neutral" rating in a report on Thursday, July 17th. Finally, BTIG Research cut Unity Software from a "neutral" rating to a "sell" rating and set a $25.00 target price on the stock. in a report on Wednesday, July 23rd. Two research analysts have rated the stock with a sell rating, six have issued a hold rating, nine have issued a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, Unity Software presently has a consensus rating of "Moderate Buy" and a consensus target price of $31.20.

Insider Buying and Selling at Unity Software

In related news, Director Shlomo Dovrat sold 50,000 shares of the company's stock in a transaction on Wednesday, July 9th. The stock was sold at an average price of $30.01, for a total transaction of $1,500,500.00. Following the completion of the sale, the director directly owned 189,089 shares in the company, valued at $5,674,560.89. This represents a 20.91% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Tomer Bar-Zeev sold 50,000 shares of the company's stock in a transaction on Monday, August 4th. The stock was sold at an average price of $33.18, for a total value of $1,659,000.00. Following the sale, the director owned 2,148,146 shares of the company's stock, valued at approximately $71,275,484.28. This represents a 2.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,212,724 shares of company stock worth $31,284,962 over the last quarter. 3.61% of the stock is currently owned by company insiders.

Unity Software Company Profile

Unity Software Inc operates a real-time 3D development platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company offers its solutions directly through its online store and field sales operations in North America, Denmark, Finland, the United Kingdom, Germany, Japan, China, Singapore, and South Korea, as well as indirectly through independent distributors and resellers worldwide.