Unity Software Inc. (NYSE:U) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Unity Software has a consensus analyst rating of “Moderate Buy” from 23 covering firms. The average 1-year price target is about $37.77, above the stock’s recent trading level.
• Recent analyst actions have been mixed but generally supportive, with firms like Citizens JMP reaffirming an outperform rating and Needham raising its target to $40. Others, including Raymond James and UBS, have maintained more neutral stances.
• Insider selling has been notable, including shares sold by CFO Jarrod Yahes and SVP Rebecca Berenice Boyden, though the company says the sales were tied to tax withholding from equity awards. Meanwhile, institutional investors still own a large majority of the stock at 73.46%.

Unity Software Inc. (NYSE:U - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the twenty-three research firms that are currently covering the company, Marketbeat reports. One analyst has rated the stock with a sell rating, nine have issued a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating on the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $37.7667.

A number of research analysts recently issued reports on the company. Citizens Jmp reaffirmed a "market outperform" rating and set a $37.00 target price on shares of Unity Software in a report on Friday, March 27th. Raymond James Financial started coverage on shares of Unity Software in a report on Monday, June 29th. They issued a "market perform" rating for the company. Wall Street Zen lowered shares of Unity Software from a "buy" rating to a "hold" rating in a research report on Saturday, March 28th. UBS Group lifted their price objective on shares of Unity Software from $26.00 to $28.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 5th. Finally, Needham & Company LLC boosted their target price on shares of Unity Software from $35.00 to $40.00 and gave the stock a "buy" rating in a report on Friday, May 8th.

Unity Software Stock Performance

U opened at $30.76 on Tuesday. The business has a 50 day moving average price of $28.12 and a two-hundred day moving average price of $28.21. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.95 and a quick ratio of 1.95. The company has a market capitalization of $13.43 billion, a price-to-earnings ratio of -19.59, a price-to-earnings-growth ratio of 3.74 and a beta of 2.05. Unity Software has a 1-year low of $16.78 and a 1-year high of $52.15.

Insider Transactions at Unity Software

In other news, CFO Jarrod Yahes sold 24,021 shares of the firm's stock in a transaction on 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 legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Rebecca Berenice Boyden sold 952 shares of Unity Software stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $27.20, for a total value of $25,894.40. Following the completion of the transaction, the senior vice president owned 309,445 shares in the company, valued at $8,416,904. The trade was a 0.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 198,321 shares of company stock valued at $5,390,783 in the last 90 days. 0.77% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Unity Software

A number of hedge funds and other institutional investors have recently modified their holdings of U. REAP Financial Group LLC acquired a new stake in Unity Software during the 4th quarter worth about $28,000. V Square Quantitative Management LLC acquired a new position in shares of Unity Software in the fourth quarter worth about $30,000. Larson Financial Group LLC increased its position in shares of Unity Software by 88.1% in the third quarter. Larson Financial Group LLC now owns 728 shares of the company's stock worth $29,000 after acquiring an additional 341 shares in the last quarter. International Assets Investment Management LLC acquired a new stake in shares of Unity Software during the fourth quarter valued at approximately $36,000. Finally, IFP Advisors Inc acquired a new stake in shares of Unity Software during the third quarter valued at approximately $33,000. Institutional investors and hedge funds own 73.46% of the company's stock.

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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