Hsbc Global Res Downgrades Unity Software (NYSE:U) to Hold

Key Points

• HSBC Global Research downgraded Unity Software from a "strong-buy" rating to a "hold" rating while raising the target price from $37.50 to $40.80.
• Unity Software reported a quarterly earnings loss of ($0.26) per share, missing expectations, but revenue rose to $440.94 million, exceeding forecasts.
• Institutional investors hold 73.46% of Unity Software's stock, with several recently increasing their positions in the company.

Unity Software (NYSE:U - Get Free Report) was downgraded by research analysts at Hsbc Global Res from a "strong-buy" rating to a "hold" rating in a report released on Tuesday,Zacks.com reports.

Other equities analysts have also recently issued research reports about the company. Citigroup raised their price target on Unity Software from $29.00 to $44.00 and gave the company a "buy" rating in a report on Wednesday, July 23rd. HSBC cut Unity Software from a "buy" rating to a "hold" rating and lifted their target price for the stock from $37.50 to $40.80 in a report on Tuesday. Needham & Company LLC lifted their target price on Unity Software from $30.00 to $40.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Wall Street Zen upgraded Unity Software from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Finally, Bank of America assumed coverage on Unity Software in a report on Thursday, June 26th. They issued an "underperform" rating and a $15.00 target price for the company. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $31.65.

Unity Software Stock Performance

NYSE U opened at $40.04 on Tuesday. The stock has a market capitalization of $16.92 billion, a PE ratio of -37.77 and a beta of 2.33. The business has a 50 day simple moving average of $39.14 and a two-hundred day simple moving average of $28.75. The company has a debt-to-equity ratio of 0.70, a current ratio of 2.73 and a quick ratio of 2.73. Unity Software has a 1-year low of $15.33 and a 1-year high of $46.94.

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

Insider Activity at Unity Software

In related news, Director David Helgason sold 1,350,000 shares of the business's stock in a transaction on Monday, September 8th. The stock was sold at an average price of $44.43, for a total transaction of $59,980,500.00. Following the completion of the transaction, the director owned 6,139,173 shares in the company, valued at $272,763,456.39. The trade was a 18.03% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, 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 value of $4,803,600.00. Following the transaction, the chief executive officer 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 position. The disclosure for this sale can be found here. Insiders have sold 2,134,426 shares of company stock worth $89,426,284 over the last quarter. 3.61% of the stock is owned by insiders.

Institutional Investors Weigh In On Unity Software

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Corient Private Wealth LLC bought a new stake in Unity Software during the 2nd quarter valued at $355,000. Osaic Holdings Inc. raised its position in Unity Software by 9.5% during the 2nd quarter. Osaic Holdings Inc. now owns 35,892 shares of the company's stock valued at $868,000 after purchasing an additional 3,111 shares in the last quarter. Marex Group plc bought a new stake in Unity Software during the 2nd quarter valued at $281,000. Advisory Services Network LLC raised its position in Unity Software by 13.7% during the 2nd quarter. Advisory Services Network LLC now owns 43,702 shares of the company's stock valued at $1,058,000 after purchasing an additional 5,255 shares in the last quarter. Finally, State of Wyoming bought a new stake in Unity Software during the 2nd quarter valued at $721,000. 73.46% of the stock is owned by institutional investors.

About Unity Software

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.

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