Unity Software Inc. (NYSE:U) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Analyst consensus: Moderate Buy — 23 analysts cover Unity (1 sell, 8 hold, 13 buy, 1 strong buy) with an average 12‑month price target of $37.41, though several firms (Wells Fargo, UBS, Barclays) recently trimmed targets.
• Q4 results showed an earnings beat (EPS $0.24 vs. $0.20 est.) and revenue of $503.1M (+10.1% YoY), but the company remains unprofitable with a negative net margin (-21.77%) and negative ROE.
• Insider selling occurred last quarter (41,684 shares sold, ~$773k), while the stock trades around $26.06 with a market cap of $11.37B and a 52‑week range of $16.78–$52.15.

Unity Software Inc. (NYSE:U - Get Free Report) has been given an average rating of "Moderate Buy" by the twenty-three analysts that are presently covering the stock, MarketBeat reports. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $37.4105.

Several analysts have weighed in on the stock. Wells Fargo & Company decreased their price target on Unity Software from $38.00 to $29.00 and set an "overweight" rating on the stock in a research note on Friday, March 27th. Benchmark restated a "hold" rating on shares of Unity Software in a report on Monday, February 2nd. UBS Group decreased their target price on shares of Unity Software from $46.00 to $32.00 and set a "neutral" rating on the stock in a research note on Tuesday, February 10th. Barclays dropped their price target on shares of Unity Software from $35.00 to $28.00 and set an "equal weight" rating for the company in a research report on Thursday, February 12th. Finally, Citizens Jmp reissued a "market outperform" rating and issued a $37.00 price target on shares of Unity Software in a report on Friday, March 27th.

Unity Software Stock Performance

Unity Software stock opened at $26.06 on Thursday. The firm has a market capitalization of $11.37 billion, a PE ratio of -27.15, a price-to-earnings-growth ratio of 9.81 and a beta of 2.00. Unity Software has a 1-year low of $16.78 and a 1-year high of $52.15. The firm's 50 day simple moving average is $21.34 and its 200 day simple moving average is $32.85. The company has a current ratio of 1.84, a quick ratio of 1.84 and a debt-to-equity ratio of 0.52.

Unity Software (NYSE:U - Get Free Report) last announced its earnings results 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. Unity Software had a negative net margin of 21.77% and a negative return on equity of 4.76%. The business had revenue of $503.09 million during the quarter, compared to analyst estimates of $490.64 million. During the same period in the previous year, the business posted ($0.30) earnings per share. Unity Software's revenue for the quarter was up 10.1% on a year-over-year basis. As a group, analysts expect that Unity Software will post 0.13 earnings per share for the current fiscal year.

Insider Activity at Unity Software

In related news, CAO Mark Barrysmith sold 10,578 shares of the stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total value of $191,144.46. Following the completion of the transaction, the chief accounting officer directly owned 383,901 shares of the company's stock, valued at $6,937,091.07. This represents a 2.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, COO Alexander Blum sold 10,164 shares of Unity Software stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total value of $183,663.48. Following the sale, the chief operating officer directly owned 550,966 shares in the company, valued at approximately $9,955,955.62. The trade was a 1.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 41,684 shares of company stock worth $773,350 over the last quarter. 0.77% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. REAP Financial Group LLC bought a new stake in Unity Software in the fourth quarter worth $28,000. Root Financial Partners LLC purchased a new position in shares of Unity Software in the 3rd quarter worth about $27,000. V Square Quantitative Management LLC purchased a new position in shares of Unity Software in the 4th quarter worth about $30,000. Larson Financial Group LLC boosted its stake in Unity Software by 88.1% in the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company's stock worth $29,000 after purchasing an additional 341 shares in the last quarter. Finally, International Assets Investment Management LLC bought a new position in Unity Software in the 4th quarter worth about $36,000. 73.46% of the stock is currently owned by institutional investors.

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.

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