Invenomic Capital Management LP Buys New Position in Unity Software Inc. $U

Key Points

• Invenomic Capital Management LP has invested approximately $5.49 million in Unity Software Inc., acquiring 280,044 shares, representing about 0.07% ownership in the company.
• Unity Software's shares have recently seen a trading increase of 9.1%, with significant institutional investment adjustments reported, including Northern Trust Corp's 31.6% increase in holdings.
• Despite a revenue of $440.94 million for the quarter, Unity Software missed earnings per share estimates, reporting ($0.26) EPS, and analysts predict a challenging upcoming year.

Invenomic Capital Management LP acquired a new position in Unity Software Inc. (NYSE:U - Free Report) during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 280,044 shares of the company's stock, valued at approximately $5,486,000. Invenomic Capital Management LP owned about 0.07% of Unity Software as of its most recent filing with the Securities and Exchange Commission.

Other large investors have also recently made changes to their positions in the company. Amalgamated Bank increased its holdings in Unity Software by 3.0% during the 1st quarter. Amalgamated Bank now owns 18,132 shares of the company's stock worth $355,000 after purchasing an additional 525 shares during the period. Bouvel Investment Partners LLC increased its position in shares of Unity Software by 1.7% in the 1st quarter. Bouvel Investment Partners LLC now owns 35,595 shares of the company's stock valued at $697,000 after purchasing an additional 580 shares during the last quarter. Signaturefd LLC increased its position in shares of Unity Software by 26.3% in the 1st quarter. Signaturefd LLC now owns 3,658 shares of the company's stock valued at $72,000 after purchasing an additional 762 shares during the last quarter. Jessup Wealth Management Inc increased its position in shares of Unity Software by 4.3% in the 1st quarter. Jessup Wealth Management Inc now owns 23,667 shares of the company's stock valued at $464,000 after purchasing an additional 985 shares during the last quarter. Finally, California State Teachers Retirement System increased its position in shares of Unity Software by 0.4% in the 4th quarter. California State Teachers Retirement System now owns 261,740 shares of the company's stock valued at $5,881,000 after purchasing an additional 1,031 shares during the last quarter. 73.46% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on U shares. BTIG Research downgraded shares of Unity Software from a "neutral" rating to a "sell" rating and set a $25.00 price objective on the stock. in a research report on Wednesday, July 23rd. Wedbush increased their price objective on shares of Unity Software from $39.00 to $41.00 and gave the company an "outperform" rating in a research report on Thursday, August 7th. Bank of America started coverage on shares of Unity Software in a research report on Thursday, June 26th. They issued an "underperform" rating and a $15.00 price objective on the stock. Needham & Company LLC increased their price objective on shares of Unity Software from $30.00 to $40.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. Finally, JMP Securities increased their target price on shares of Unity Software from $30.00 to $35.00 and gave the company a "market outperform" rating in a research report on Thursday, August 7th. Two analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Unity Software presently has an average rating of "Moderate Buy" and a consensus price target of $31.20.

Unity Software Price Performance

U traded up $0.95 during midday trading on Thursday, reaching $44.05. 4,180,990 shares of the company's stock were exchanged, compared to its average volume of 12,344,248. 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 stock has a market capitalization of $18.61 billion, a PE ratio of -41.51 and a beta of 2.33. The business's 50-day moving average price is $35.42 and its 200 day moving average price is $26.75. Unity Software Inc. has a 1-year low of $15.33 and a 1-year high of $46.00.

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

Insider Buying and Selling at Unity Software

In other news, CEO Matthew S. Bromberg sold 120,000 shares of the business's stock in a transaction on Tuesday, August 26th. The shares were sold at an average price of $40.03, for a total transaction of $4,803,600.00. Following the transaction, the chief executive officer directly owned 1,222,812 shares of the company's stock, valued at approximately $48,949,164.36. The trade was a 8.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director David Helgason sold 1,350,000 shares of the company's stock in a transaction on Monday, September 8th. The shares were sold at an average price of $44.43, for a total transaction of $59,980,500.00. Following the completion of the sale, the director directly owned 6,139,173 shares in the company, valued at $272,763,456.39. This represents a 18.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 1,981,485 shares of company stock valued at $82,447,777. 3.61% of the stock is 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.