Needham & Company LLC Issues Positive Forecast for Unity Software (NYSE:U) Stock Price

Key Points

• Needham raised Unity Software’s price target from $40 to $54 and maintained a “buy” rating, implying approximately 24.9% upside from the prior close.
• Analyst sentiment has strengthened, with HSBC, Benchmark and Zacks Research upgrading the stock; Unity has a consensus “Moderate Buy” rating and an average price target of $42.69.
• Unity shares opened at $43.22, up sharply from their 50-day and 200-day moving averages, while insiders sold nearly 198,321 shares worth $5.4 million over the past 90 days to cover tax obligations on vested equity awards.

Unity Software (NYSE:U - Get Free Report) had its price target hoisted by equities research analysts at Needham & Company LLC from $40.00 to $54.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Needham & Company LLC's target price would suggest a potential upside of 24.94% from the company's previous close.

Several other equities research analysts also recently issued reports on the company. HSBC raised Unity Software from a "hold" rating to a "buy" rating and set a $47.10 price objective for the company in a research note on Friday. Wedbush upped their target price on Unity Software from $32.00 to $36.00 and gave the company an "outperform" rating in a report on Wednesday, July 22nd. 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. Barclays raised their price target on shares of Unity Software from $28.00 to $33.00 and gave the stock an "equal weight" rating in a report on Friday, May 8th. Finally, Zacks Research raised shares of Unity Software from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 13th. Two analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $42.69.

Unity Software Price Performance

U opened at $43.22 on Friday. The firm has a market capitalization of $18.87 billion, a P/E ratio of -27.61, a PEG ratio of 4.20 and a beta of 2.04. The stock has a fifty day moving average of $29.89 and a 200-day moving average of $26.57. The company has a quick ratio of 1.95, a current ratio of 1.95 and a debt-to-equity ratio of 0.56. Unity Software has a 12-month low of $16.78 and a 12-month high of $52.15.

Insider Buying and Selling

In other news, CFO Jarrod Yahes sold 24,021 shares of the firm's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $27.18, for a total transaction of $652,890.78. Following the completion of the sale, the chief financial officer directly owned 704,360 shares of the company's stock, valued at $19,144,504.80. This trade represents a 3.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Matthew S. Bromberg sold 138,993 shares of the firm's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $27.18, for a total value of $3,777,829.74. Following the sale, the chief executive officer directly owned 1,557,514 shares of the company's stock, valued at $42,333,230.52. This trade represents a 8.19% 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. Over the last 90 days, insiders sold 198,321 shares of company stock worth $5,390,783. Insiders own 0.77% of the company's stock.

Institutional Trading of Unity Software

Institutional investors have recently added to or reduced their stakes in the business. REAP Financial Group LLC bought a new position in shares of Unity Software during the 4th quarter valued at $28,000. V Square Quantitative Management LLC acquired a new position in Unity Software during the fourth quarter worth $30,000. Larson Financial Group LLC increased its position in Unity Software by 88.1% during the third quarter. Larson Financial Group LLC now owns 728 shares of the company's stock worth $29,000 after buying an additional 341 shares during the last quarter. International Assets Investment Management LLC bought a new position in Unity Software during the fourth quarter valued at about $36,000. Finally, IFP Advisors Inc bought a new position in Unity Software during the third quarter valued at about $33,000. 73.46% of the stock is currently owned by institutional investors and hedge funds.

Unity Software News Summary

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

• Positive Sentiment: Unity reported second-quarter revenue of approximately $546.5 million, up about 24% year over year and above analyst estimates near $514 million. Adjusted earnings of $0.28 per share also exceeded expectations, compared with a loss in the prior-year period. Unity Reports Upbeat Q2 Results
• Positive Sentiment: Management projected third-quarter strategic revenue of $540 million to $550 million, ahead of the roughly $533.8 million consensus estimate, and forecast a 33% adjusted EBITDA margin. The outlook was supported by momentum in Vector, while management highlighted record free cash flow and the potential to reach GAAP profitability earlier than expected. Unity Q3 Forecast
• Positive Sentiment: Analysts broadly raised their views following the earnings beat. Bank of America, Deutsche Bank, Benchmark, and HSBC upgraded Unity to “buy,” with price targets generally ranging from $47.10 to $50. BTIG also raised its target to $51, reinforcing the market’s improved expectations for growth and execution. Analyst Forecasts After Unity Q2 Results
• Positive Sentiment: Options activity was also bullish, with investors purchasing 41,488 Unity call contracts—about 30% above typical daily volume—indicating increased speculative interest after the earnings release.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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