UBS Group Forecasts Strong Price Appreciation for Unity Software (NYSE:U) Stock

Key Points

• UBS raised its price target on Unity to $28 (from $26) while keeping a "neutral" rating, which implies only about a 1.5% upside from the prior close.
• Aggregate analyst coverage is more bullish: Unity holds a "Moderate Buy" consensus with an average price target of $37.04, reflecting significantly more upside than UBS's target.
• Unity beat quarterly estimates (EPS $0.24 vs $0.20; revenue $503.1M vs $490.6M, +10.1% YoY) but still shows a negative net margin and ROE; insiders have modestly trimmed positions while institutional ownership is about 73%.

Unity Software (NYSE:U - Get Free Report) had its price objective lifted by investment analysts at UBS Group from $26.00 to $28.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. UBS Group's price target would indicate a potential upside of 1.53% from the company's previous close.

Several other equities research analysts have also recently issued reports on U. Oppenheimer raised shares of Unity Software from a "market perform" rating to an "outperform" rating and set a $38.00 price objective for the company in a research report on Tuesday, February 10th. Benchmark reissued a "hold" rating on shares of Unity Software in a research report on Monday, February 2nd. Needham & Company LLC restated a "buy" rating and issued a $35.00 price target on shares of Unity Software in a report on Friday, March 27th. Wedbush restated an "outperform" rating and issued a $30.00 price target on shares of Unity Software in a report on Thursday, April 30th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Unity Software in a report on Wednesday, January 21st. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Unity Software currently has an average rating of "Moderate Buy" and a consensus target price of $37.04.

Unity Software Trading Down 0.5%

Unity Software stock traded down $0.14 during trading hours on Tuesday, hitting $27.58. The company had a trading volume of 3,404,867 shares, compared to its average volume of 16,361,812. The firm has a market cap of $12.03 billion, a P/E ratio of -28.74, a P/E/G ratio of 9.99 and a beta of 2.04. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.84 and a current ratio of 1.84. Unity Software has a 1 year low of $16.78 and a 1 year high of $52.15. The company has a 50-day moving average price of $21.50 and a two-hundred day moving average price of $32.75.

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 the consensus estimate of $0.20 by $0.04. The company had revenue of $503.09 million during the quarter, compared to analysts' expectations of $490.64 million. Unity Software had a negative net margin of 21.77% and a negative return on equity of 4.76%. The firm's quarterly revenue was up 10.1% on a year-over-year basis. During the same period in the previous year, the company earned ($0.30) EPS. On average, sell-side analysts anticipate that Unity Software will post 0.13 earnings per share for the current year.

Insider Buying and Selling

In related news, COO Alexander Blum sold 10,164 shares of the business'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 $183,663.48. Following the completion of the transaction, the chief operating officer owned 550,966 shares in the company, valued at $9,955,955.62. The trade was a 1.81% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Mark Barrysmith sold 10,578 shares of the business's stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total transaction of $191,144.46. Following the transaction, the chief accounting officer owned 383,901 shares of the company's stock, valued at approximately $6,937,091.07. This trade represents a 2.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 41,684 shares of company stock worth $773,350 in the last 90 days. 0.77% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. Flynn Zito Capital Management LLC raised its stake in shares of Unity Software by 101.7% during the 1st quarter. Flynn Zito Capital Management LLC now owns 13,687 shares of the company's stock worth $300,000 after acquiring an additional 6,900 shares in the last quarter. Emerald Mutual Fund Advisers Trust bought a new position in shares of Unity Software during the 1st quarter worth approximately $267,000. Bleakley Financial Group LLC bought a new position in shares of Unity Software during the 1st quarter worth approximately $871,000. 180 Wealth Advisors LLC grew its position in Unity Software by 48.5% during the 1st quarter. 180 Wealth Advisors LLC now owns 15,535 shares of the company's stock worth $341,000 after purchasing an additional 5,074 shares during the last quarter. Finally, Fifth Third Bancorp grew its position in Unity Software by 284,400.0% during the 1st quarter. Fifth Third Bancorp now owns 2,845 shares of the company's stock worth $62,000 after purchasing an additional 2,844 shares during the last quarter. Institutional investors own 73.46% of the company's stock.

Unity Software Company 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.

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.