Hsbc Holdings PLC Buys 170,714 Shares of Unity Software Inc. $U

Key Points

• HSBC Holdings increased its Unity Software stake by 731.8% in the second quarter, purchasing 170,714 additional shares to bring its total holdings to 194,042 shares valued at approximately $5.6 million.
• Unity reported stronger-than-expected quarterly results, with earnings of $0.28 per share and revenue of $546.47 million, up 24% year over year. Institutional investors collectively own 73.46% of the company.
• Wall Street sentiment is positive, with analysts assigning a consensus “Moderate Buy” rating and an average price target of $45.16; targets range from $36 to $55.

Hsbc Holdings PLC grew its stake in Unity Software Inc. (NYSE:U - Free Report) by 731.8% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 194,042 shares of the company's stock after purchasing an additional 170,714 shares during the quarter. Hsbc Holdings PLC's holdings in Unity Software were worth $5,591,000 as of its most recent SEC filing.

Other hedge funds also recently modified their holdings of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Unity Software by 5.9% in the 1st 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 acquiring an additional 45,481 shares during the period. Focus Partners Wealth bought a new position in shares of Unity Software during the first quarter worth approximately $260,000. Northwestern Mutual Wealth Management Co. lifted its holdings in Unity Software by 28.9% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 5,542 shares of the company's stock worth $134,000 after purchasing an additional 1,241 shares during the last quarter. California Public Employees Retirement System lifted its holdings in Unity Software by 11.3% during the 2nd quarter. California Public Employees Retirement System now owns 520,774 shares of the company's stock worth $12,603,000 after purchasing an additional 53,015 shares during the last quarter. Finally, Sei Investments Co. boosted its stake in Unity Software by 1,135.6% in the 2nd quarter. Sei Investments Co. now owns 224,715 shares of the company's stock valued at $5,438,000 after purchasing an additional 206,529 shares during the period. Institutional investors and hedge funds own 73.46% of the company's stock.

Unity Software Stock Performance

NYSE:U opened at $42.49 on Thursday. The stock has a fifty day moving average price of $37.37 and a 200-day moving average price of $28.94. The company has a market cap of $18.70 billion, a price-to-earnings ratio of -31.24, a PEG ratio of 1.87 and a beta of 2.06. The company has a debt-to-equity ratio of 0.55, a quick ratio of 2.03 and a current ratio of 2.03. Unity Software Inc. has a fifty-two week low of $16.78 and a fifty-two week high of $52.15.

Unity Software (NYSE:U - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.28 EPS for the quarter, topping analysts' consensus estimates of ($0.11) by $0.39. Unity Software had a positive return on equity of 4.64% and a negative net margin of 28.97%.The company had revenue of $546.47 million for the quarter, compared to analysts' expectations of $514.72 million. During the same quarter last year, the business earned $0.18 earnings per share. Unity Software's revenue was up 24.0% on a year-over-year basis. As a group, equities analysts anticipate that Unity Software Inc. will post 0.55 EPS for the current fiscal year.

Insider Activity

In related news, SVP Rebecca Boyden sold 1,032 shares of Unity Software stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $45.32, for a total value of $46,770.24. Following the transaction, the senior vice president directly owned 308,413 shares of the company's stock, valued at $13,977,277.16. This trade represents a 0.33% decrease in their ownership of the stock. The sale was disclosed in a legal 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, CEO Matthew S. Bromberg sold 16,383 shares of the company's stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $45.31, for a total value of $742,313.73. Following the sale, the chief executive officer owned 1,541,131 shares of the company's stock, valued at $69,828,645.61. The trade was a 1.05% 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 have sold a total of 109,547 shares of company stock valued at $4,884,202 over the last quarter. 0.77% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. HSBC upgraded Unity Software from a "hold" rating to a "buy" rating and set a $47.10 price objective on the stock in a research report on Friday, August 7th. Citizens Jmp upped their price target on shares of Unity Software from $37.00 to $45.00 and gave the company a "market outperform" rating in a research note on Friday, August 7th. Citigroup lifted their price objective on shares of Unity Software from $40.00 to $48.00 and gave the stock a "buy" rating in a research note on Monday, August 10th. Piper Sandler boosted their price objective on shares of Unity Software from $45.00 to $55.00 and gave the company an "overweight" rating in a report on Friday, August 7th. Finally, Wedbush increased their target price on shares of Unity Software from $32.00 to $36.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 22nd. Two research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $45.16.

Unity Software Company Profile

Unity Software Inc develops software and services for creating, operating and monetizing interactive, real-time 2D and 3D content. Its platform is widely used to build video games for mobile devices, personal computers, consoles and the web, as well as applications for industries such as automotive, architecture, engineering, construction, manufacturing and media.

The company's core offerings include the Unity Engine and related development tools, which support graphics, physics, animation, audio, scripting and deployment across multiple platforms.

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