Primecap Management Co. CA Makes New $4.36 Million Investment in Unity Software Inc. $U

Key Points

• Primecap Management initiated a $4.36 million position in Unity Software by purchasing 152,710 shares during the second quarter. Institutional investors now own 73.46% of the company.
• Analysts remain broadly positive, with Unity holding a consensus “Moderate Buy” rating and an average price target of $45.16; BTIG and Needham recently raised their targets to $51 and $54, respectively.
• Unity reported quarterly revenue of $546.47 million, up 24% year over year, and adjusted earnings of $0.28 per share, beating analyst expectations. The stock opened at $44.15, while insiders have sold shares primarily to cover tax obligations from equity awards.

Primecap Management Co. CA bought a new position in shares of Unity Software Inc. (NYSE:U - Free Report) during the 2nd quarter, according to its most recent 13F filing with the SEC. The firm bought 152,710 shares of the company's stock, valued at approximately $4,364,000.

Other institutional investors have also recently bought and sold shares of the company. Canada Pension Plan Investment Board bought a new position in shares of Unity Software during the 2nd quarter worth approximately $7,077,000. Legal & General Group Plc acquired a new position in Unity Software during the second quarter worth $8,006,000. The Manufacturers Life Insurance Company acquired a new stake in Unity Software in the 2nd quarter valued at $3,527,000. Cibc World Market Inc. acquired a new stake in Unity Software in the 2nd quarter valued at $355,000. Finally, Sanctuary Advisors LLC bought a new stake in Unity Software during the 2nd quarter worth about $275,000. Institutional investors own 73.46% of the company's stock.

Analysts Set New Price Targets

Several brokerages have recently weighed in on U. BTIG Research raised their price objective on Unity Software from $43.00 to $51.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Needham & Company LLC boosted their price target on Unity Software from $40.00 to $54.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Wall Street Zen raised Unity Software from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. UBS Group restated an "outperform" rating on shares of Unity Software in a report on Friday, August 7th. Finally, Wedbush lifted their price objective on shares of Unity Software from $32.00 to $36.00 and gave the company an "outperform" rating in a research report on Wednesday, July 22nd. Two analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $45.16.

Insiders Place Their Bets

In other news, CEO Matthew S. Bromberg sold 16,383 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $45.31, for a total transaction of $742,313.73. Following the transaction, the chief executive officer owned 1,541,131 shares in the company, valued at approximately $69,828,645.61. This trade represents a 1.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Rebecca Berenice Boyden sold 1,032 shares of Unity Software stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $45.32, for a total value of $46,770.24. Following the sale, the senior vice president directly owned 308,413 shares of the company's stock, valued at approximately $13,977,277.16. The trade was a 0.33% 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 43,432 shares of company stock worth $1,967,914 over the last three months. Insiders own 0.77% of the company's stock.

Unity Software Trading Down 1.9%

U stock opened at $44.15 on Thursday. Unity Software Inc. has a one year low of $16.78 and a one year high of $52.15. The stock has a market cap of $19.43 billion, a price-to-earnings ratio of -32.46, a price-to-earnings-growth ratio of 1.97 and a beta of 2.04. The company has a fifty day moving average price of $34.53 and a two-hundred day moving average price of $27.50. The company has a debt-to-equity ratio of 0.55, a current ratio of 2.03 and a quick ratio of 2.03.

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

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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