Massachusetts Financial Services Co. MA Acquires 252,648 Shares of Unity Software Inc. $U

Key Points

• Massachusetts Financial Services Co. increased its stake in Unity Software by 9.5% in Q4, acquiring 252,648 shares to own 2,905,820 shares (about 0.68% of the company) valued at $128.35 million.
• Unity beat Q4 expectations with $0.24 EPS vs. $0.20 and revenue of $503.09 million vs. $490.64 million, but remains unprofitable with a -21.77% net margin and negative return on equity.
• Analyst sentiment is mixed—the average price target is $37.41 with recent moves including Goldman cutting its target to $27 while Morgan Stanley and Needham raised theirs—and insiders sold 41,684 shares in the past three months (insiders own 0.77%).

Massachusetts Financial Services Co. MA lifted its holdings in shares of Unity Software Inc. (NYSE:U - Free Report) by 9.5% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 2,905,820 shares of the company's stock after acquiring an additional 252,648 shares during the quarter. Massachusetts Financial Services Co. MA owned approximately 0.68% of Unity Software worth $128,350,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Vanguard Group Inc. boosted its stake in shares of Unity Software by 2.8% during the 3rd quarter. Vanguard Group Inc. now owns 34,556,611 shares of the company's stock worth $1,383,647,000 after acquiring an additional 930,293 shares during the period. Broad Peak Investment Advisers Pte Ltd boosted its stake in shares of Unity Software by 43.6% during the 3rd quarter. Broad Peak Investment Advisers Pte Ltd now owns 2,849,437 shares of the company's stock worth $114,091,000 after acquiring an additional 865,179 shares during the period. Maytree Asset Management Ltd boosted its stake in shares of Unity Software by 112.0% during the 3rd quarter. Maytree Asset Management Ltd now owns 217,846 shares of the company's stock worth $8,723,000 after acquiring an additional 115,111 shares during the period. State of Wyoming bought a new position in shares of Unity Software during the 2nd quarter worth approximately $721,000. Finally, Principal Financial Group Inc. boosted its stake in Unity Software by 46.5% in the 3rd quarter. Principal Financial Group Inc. now owns 211,686 shares of the company's stock valued at $8,476,000 after purchasing an additional 67,219 shares during the period. 73.46% of the stock is currently owned by institutional investors.

Unity Software Price Performance

Shares of NYSE U opened at $22.78 on Tuesday. The stock has a market capitalization of $9.94 billion, a PE ratio of -23.73, a P/E/G ratio of 9.53 and a beta of 2.00. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.84 and a quick ratio of 1.84. The business has a fifty day moving average price of $20.60 and a two-hundred day moving average price of $33.92. 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 announced its quarterly earnings data on Wednesday, February 11th. The company reported $0.24 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.04. The firm had revenue of $503.09 million during the quarter, compared to analysts' expectations of $490.64 million. Unity Software had a negative return on equity of 4.76% and a negative net margin of 21.77%.The company's quarterly revenue was up 10.1% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.30) EPS. As a group, equities analysts predict that Unity Software Inc. will post -1.25 earnings per share for the current fiscal year.

Insider Buying and Selling at Unity Software

In other Unity Software news, COO Alexander Blum sold 10,164 shares of Unity Software stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total value of $183,663.48. Following the completion of the transaction, the chief operating officer directly owned 550,966 shares of the company's stock, valued at $9,955,955.62. The trade was a 1.81% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Mark Barrysmith sold 10,578 shares of Unity Software stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total value of $191,144.46. Following the completion of the transaction, the chief accounting officer directly owned 383,901 shares of the company's stock, valued at $6,937,091.07. This represents a 2.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 41,684 shares of company stock valued at $773,350 in the last three months. Corporate insiders own 0.77% of the company's stock.

Analysts Set New Price Targets

Several analysts recently issued reports on U shares. The Goldman Sachs Group reduced their price target on Unity Software from $47.00 to $27.00 and set a "neutral" rating for the company in a research note on Thursday, February 12th. Weiss Ratings restated a "sell (d-)" rating on shares of Unity Software in a research note on Wednesday, January 21st. Needham & Company LLC restated a "buy" rating and issued a $35.00 price target on shares of Unity Software in a research note on Friday, March 27th. Morgan Stanley boosted their price target on Unity Software from $30.00 to $32.00 and gave the company an "overweight" rating in a research note on Friday, March 27th. Finally, Bank of America boosted their price target on Unity Software from $19.00 to $21.00 and gave the company a "neutral" rating in a research note on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Unity Software currently has an average rating of "Moderate Buy" and an average price target of $37.41.

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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