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

Key Points

• UBS raised Unity Software’s price target from $28 to $32 but maintained a neutral rating; the target implies about 4.3% downside from the stock’s $33.44 closing price.
• Analyst sentiment remains generally positive, with a consensus rating of “Moderate Buy” and an average price target of $38.49. Recent targets range from $33 at Barclays to $45 at Piper Sandler.
• Unity shares have traded between $16.78 and $52.15 over the past year, while insiders sold roughly 198,321 shares worth $5.4 million last quarter, primarily to cover tax obligations on vested equity awards.

Unity Software (NYSE:U - Get Free Report) had its target price upped by investment analysts at UBS Group from $28.00 to $32.00 in a report issued on Monday,Benzinga reports. The firm presently has a "neutral" rating on the stock. UBS Group's price target suggests a potential downside of 4.32% from the company's previous close.

A number of other research analysts have also weighed in on U. Wells Fargo & Company raised their price objective on Unity Software from $35.00 to $36.00 and gave the company an "overweight" rating in a research report on Tuesday, July 7th. Barclays boosted their target price on Unity Software from $28.00 to $33.00 and gave the stock an "equal weight" rating in a research report on Friday, May 8th. Raymond James Financial started coverage on Unity Software in a report on Monday, June 29th. They set a "market perform" rating for the company. Piper Sandler reaffirmed an "overweight" rating and issued a $45.00 price objective (up from $40.00) on shares of Unity Software in a research note on Thursday. Finally, Needham & Company LLC upped their price objective on Unity Software from $35.00 to $40.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $38.49.

Unity Software Price Performance

U stock traded up $1.73 during mid-day trading on Monday, hitting $33.44. The company had a trading volume of 12,831,029 shares, compared to its average volume of 13,322,456. The company has a market capitalization of $14.60 billion, a price-to-earnings ratio of -21.30, a P/E/G ratio of 3.75 and a beta of 2.05. Unity Software has a 12-month low of $16.78 and a 12-month high of $52.15. The company has a quick ratio of 1.95, a current ratio of 1.95 and a debt-to-equity ratio of 0.56. The company has a 50-day moving average price of $29.19 and a 200 day moving average price of $26.76.

Insiders Place Their Bets

In other news, CFO Jarrod Yahes sold 24,021 shares of the firm's stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $27.18, for a total value of $652,890.78. Following the completion of the sale, the chief financial officer owned 704,360 shares in the company, valued at approximately $19,144,504.80. This trade represents a 3.30% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Alexander Blum sold 2,099 shares of the firm's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $27.37, for a total transaction of $57,449.63. Following the completion of the sale, the chief operating officer owned 727,970 shares of the company's stock, valued at $19,924,538.90. This trade represents a 0.29% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 198,321 shares of company stock valued at $5,390,783. 0.77% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. REAP Financial Group LLC purchased a new stake in shares of Unity Software in the fourth quarter worth approximately $28,000. V Square Quantitative Management LLC purchased a new position in Unity Software during the 4th quarter valued at $30,000. Larson Financial Group LLC boosted its holdings in Unity Software by 88.1% during the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company's stock valued at $29,000 after acquiring an additional 341 shares during the period. International Assets Investment Management LLC bought a new position in Unity Software in the 4th quarter valued at $36,000. Finally, IFP Advisors Inc bought a new position in Unity Software in the 3rd quarter valued at $33,000. Hedge funds and other 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.

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