Zevenbergen Capital Investments LLC Acquires 32,602 Shares of Unity Software Inc. $U

Key Points

• Zevenbergen Capital Investments acquired 32,602 Unity Software shares worth approximately $1.33 million, while institutional investors overall own 73.46% of the company.
• Unity reported quarterly revenue of $546.47 million, up 24% year over year, and adjusted EPS of $0.28, exceeding analysts’ expectations. The stock traded at $45.83, near the analyst consensus price target of $45.55.
• Analyst sentiment remains broadly positive, with 18 Buy ratings and an overall “Moderate Buy” consensus, although insiders sold shares recently and one research firm downgraded the stock to Hold.

Zevenbergen Capital Investments LLC bought a new stake in Unity Software Inc. (NYSE:U - Free Report) during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 32,602 shares of the company's stock, valued at approximately $1,334,000.

Several other hedge funds and other institutional investors have also made changes to their positions in U. Atreides Management LP purchased a new stake in shares of Unity Software during the 2nd quarter valued at about $292,826,000. Resolute Advisors LLC raised its stake in shares of Unity Software by 473.3% during the second quarter. Resolute Advisors LLC now owns 4,766,219 shares of the company's stock valued at $136,219,000 after purchasing an additional 3,934,840 shares during the period. Dimensional Fund Advisors LP raised its stake in shares of Unity Software by 52.8% during the first quarter. Dimensional Fund Advisors LP now owns 4,245,014 shares of the company's stock valued at $93,089,000 after purchasing an additional 1,465,962 shares during the period. Renaissance Technologies LLC acquired a new stake in Unity Software during the 1st quarter valued at $54,534,000. Finally, Amundi grew its holdings in Unity Software by 4.7% during the 2nd quarter. Amundi now owns 2,334,695 shares of the company's stock valued at $66,726,000 after purchasing an additional 105,268 shares in the last quarter. Institutional investors and hedge funds own 73.46% of the company's stock.

Unity Software Stock Performance

Shares of Unity Software stock traded up $0.39 during trading hours on Thursday, reaching $45.83. The company's stock had a trading volume of 15,658,548 shares, compared to its average volume of 12,869,261. 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 one year low of $16.78 and a one year high of $52.15. The company's 50 day simple moving average is $42.41 and its 200 day simple moving average is $32.23. The stock has a market cap of $20.17 billion, a P/E ratio of -33.70, a price-to-earnings-growth ratio of 1.97 and a beta of 2.11.

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

Analyst Ratings Changes

Several research firms recently commented on U. Wedbush boosted their price target on Unity Software from $32.00 to $36.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 22nd. Oppenheimer reiterated an "outperform" rating on shares of Unity Software in a research note on Thursday. Benchmark raised shares of Unity Software from a "hold" rating to a "buy" rating and set a $50.00 price target for the company in a research report on Friday, August 7th. HSBC raised shares of Unity Software from a "hold" rating to a "buy" rating and set a $47.10 price target on the stock in a report on Friday, August 7th. Finally, Wells Fargo & Company boosted their target price on shares of Unity Software from $36.00 to $48.00 and gave the stock an "overweight" rating in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $45.55.

Insiders Place Their Bets

In other news, COO Alexander Blum sold 43,556 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $43.51, for a total value of $1,895,121.56. Following the completion of the transaction, the chief operating officer owned 661,855 shares of the company's stock, valued at approximately $28,797,311.05. This represents a 6.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jarrod Yahes sold 26,017 shares of the company's stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $45.31, for a total transaction of $1,178,830.27. Following the completion of the sale, the chief financial officer directly owned 678,343 shares of the company's stock, valued at $30,735,721.33. The trade was a 3.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 109,547 shares of company stock valued at $4,884,202 in the last quarter. 0.77% of the stock is owned by insiders.

More Unity Software News

Here are the key news stories impacting Unity Software this week:

• Positive Sentiment: Analyst upgrades support the rally. Raymond James upgraded Unity from “market perform” to “outperform” and set a $54 price target. Jefferies also raised its target from $50 to $54 and assigned a “buy” rating, implying approximately 18% upside from the reference price. Analysts cited Unity’s Google partnership and improving growth prospects. Why Is Unity Software Stock Gaining Thursday?
• Positive Sentiment: Google partnership expands Unity’s AI opportunity. Google and Unity plan to launch an AI-powered platform that allows users to create games with natural-language prompts rather than coding. The initial Playground product is expected to connect with Google Play Games, while Unity Spark is planned as a higher-fidelity expansion later this year. The initiative could broaden Unity’s creator base and funnel new users toward its professional game engine. Google, Unity launch platform to create video games from prompts
• Positive Sentiment: Investors see potential margin benefits. Google’s cloud infrastructure and AI models could give Unity access to advanced technology without requiring the company to shoulder all of the related computing costs. That could support user growth while limiting research, development and infrastructure spending. Unity’s latest reported quarter also featured revenue growth of 24% year over year and adjusted earnings that exceeded consensus expectations.
• Neutral Sentiment: The partnership increases competitive pressure across gaming. The AI platform may challenge creator-focused services such as Roblox by lowering barriers to game development, but its financial contribution to Unity remains dependent on adoption, monetization and the successful launch of Unity Spark. Google and Unity Team to Let Users Build Their Own Games
• Negative Sentiment: Not all analysts are bullish. Zacks Research downgraded Unity from “strong-buy” to “hold,” providing a counterpoint to the Raymond James and Jefferies upgrades. The split in ratings indicates that investors may remain focused on Unity’s path to sustained profitability and whether the AI initiative can produce material revenue.

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 entertainment.

The company's core offering is the Unity development platform, which includes tools for graphics, physics, animation, audio, scripting and cross-platform deployment.

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