Unity Software Inc. $U Shares Purchased by Picton Mahoney Asset Management

Key Points

• Picton Mahoney Asset Management boosted its stake by 227%, acquiring an additional 73,763 shares to hold 106,253 shares of Unity worth about $4.25 million at the end of the quarter.
• Unity beat quarterly expectations with $0.24 EPS (vs. $0.20 est.) and $503.09M revenue (+10.1% YoY) but remains unprofitable (negative net margin) while the stock trades near $20.74 and carries a consensus "Moderate Buy" price target of $39.73.
• Insiders sold heavily last quarter (933,233 shares worth ~$45.4M, including 393,312 shares by a director), even as institutional ownership is high at 73.46% with Vanguard holding ~34.56M shares.

Picton Mahoney Asset Management grew its stake in shares of Unity Software Inc. (NYSE:U - Free Report) by 227.0% in the third quarter, according to its most recent filing with the SEC. The fund owned 106,253 shares of the company's stock after acquiring an additional 73,763 shares during the period. Picton Mahoney Asset Management's holdings in Unity Software were worth $4,254,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of the stock. Jefferies Financial Group Inc. acquired a new position in shares of Unity Software in the 2nd quarter valued at $205,000. Vanguard Group Inc. raised its holdings in 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 buying an additional 930,293 shares during the period. Austin Wealth Management LLC purchased a new stake in Unity Software during the second quarter valued at about $208,000. PNC Financial Services Group Inc. boosted its holdings in shares of Unity Software by 148.2% in the second quarter. PNC Financial Services Group Inc. now owns 22,181 shares of the company's stock worth $537,000 after buying an additional 13,245 shares during the period. Finally, Broad Peak Investment Advisers Pte Ltd increased its position in shares of Unity Software by 43.6% in the third 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 in the last quarter. 73.46% of the stock is owned by institutional investors.

Unity Software Trading Up 1.8%

Unity Software stock opened at $20.74 on Friday. Unity Software Inc. has a 12 month low of $15.33 and a 12 month high of $52.15. The company has a quick ratio of 1.84, a current ratio of 1.84 and a debt-to-equity ratio of 0.52. The stock has a market cap of $8.98 billion, a P/E ratio of -21.60, a P/E/G ratio of 10.93 and a beta of 2.14. The company's fifty day simple moving average is $32.45 and its 200-day simple moving average is $38.07.

Unity Software (NYSE:U - Get Free Report) last released its quarterly earnings data on Wednesday, February 11th. The company reported $0.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.20 by $0.04. Unity Software had a negative return on equity of 4.76% and a negative net margin of 21.77%.The firm had revenue of $503.09 million during the quarter, compared to analysts' expectations of $490.64 million. During the same quarter last year, the firm earned ($0.30) earnings per share. The business's revenue for the quarter was up 10.1% on a year-over-year basis. As a group, sell-side analysts forecast that Unity Software Inc. will post -1.25 EPS for the current fiscal year.

Insider Buying and Selling at Unity Software

In related news, Director David Helgason sold 393,312 shares of the business's stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $49.64, for a total value of $19,524,007.68. Following the completion of the sale, the director owned 5,439,173 shares of the company's stock, valued at approximately $270,000,547.72. The trade was a 6.74% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO Mark Barrysmith sold 10,578 shares of the firm's stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total transaction of $191,144.46. Following the transaction, the chief accounting officer directly owned 383,901 shares in the company, valued at approximately $6,937,091.07. The trade was a 2.68% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 933,233 shares of company stock worth $45,387,419 over the last quarter. Insiders own 3.61% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Unity Software in a report on Wednesday, January 21st. Wells Fargo & Company cut their target price on shares of Unity Software from $54.00 to $38.00 and set an "overweight" rating on the stock in a research note on Thursday, February 12th. UBS Group reduced their target price on Unity Software from $46.00 to $32.00 and set a "neutral" rating for the company in a report on Tuesday, February 10th. Wall Street Zen downgraded Unity Software from a "buy" rating to a "hold" rating in a report on Saturday, February 21st. Finally, Needham & Company LLC reissued a "buy" rating and set a $50.00 price target on shares of Unity Software in a research report on Wednesday, February 11th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $39.73.

About Unity Software

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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