Unity Software Inc. (NYSE:U) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Unity Software Inc. has received an average consensus rating of "Hold" from 20 research firms, with ratings varying from three sells to one strong buy.
• The company's stock is currently trading at approximately $36.15, having experienced a 7.2% decline.
• Unity's recent earnings report showed a loss of ($0.26) per share, missing expectations, while revenue was $440.94 million, slightly above estimates but down 1.9% year-over-year.

Unity Software Inc. (NYSE:U - Get Free Report) has been assigned an average rating of "Hold" from the twenty research firms that are covering the firm, Marketbeat.com reports. Three analysts have rated the stock with a sell rating, nine have issued a hold rating, seven have issued a buy rating and one has issued a strong buy rating on the company. The average 1 year price objective among brokers that have covered the stock in the last year is $32.6533.

U has been the subject of several research analyst reports. Citigroup lifted their target price on Unity Software from $44.00 to $50.00 and gave the stock a "buy" rating in a research report on Wednesday, October 1st. HSBC lowered Unity Software from a "buy" rating to a "hold" rating and raised their price target for the company from $37.50 to $40.80 in a research note on Tuesday, September 30th. Needham & Company LLC raised their price target on Unity Software from $30.00 to $40.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. UBS Group raised their price target on Unity Software from $22.00 to $33.00 and gave the company a "neutral" rating in a research note on Thursday, July 17th. Finally, Zacks Research lowered Unity Software from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 13th.

Unity Software Stock Down 7.2%

NYSE:U opened at $36.15 on Friday. Unity Software has a twelve month low of $15.33 and a twelve month high of $46.94. The company has a market cap of $15.27 billion, a price-to-earnings ratio of -34.10 and a beta of 2.32. The stock has a fifty day simple moving average of $39.89 and a 200-day simple moving average of $29.62. The company has a current ratio of 2.73, a quick ratio of 2.73 and a debt-to-equity ratio of 0.70.

Unity Software (NYSE:U - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of ($0.25) by ($0.01). Unity Software had a negative return on equity of 13.59% and a negative net margin of 24.38%.The business had revenue of $440.94 million for the quarter, compared to the consensus estimate of $425.18 million. During the same quarter last year, the business posted ($0.32) earnings per share. The firm's revenue for the quarter was down 1.9% compared to the same quarter last year. Analysts anticipate that Unity Software will post -1.25 EPS for the current year.

Insider Activity

In other news, CFO Jarrod Yahes sold 29,876 shares of the firm's stock in a transaction on Monday, August 25th. The stock was sold at an average price of $39.32, for a total transaction of $1,174,724.32. Following the transaction, the chief financial officer owned 638,504 shares in the company, valued at approximately $25,105,977.28. This trade represents a 4.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Tomer Bar-Zeev sold 250,000 shares of the firm's stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $39.83, for a total value of $9,957,500.00. Following the transaction, the director owned 1,548,146 shares in the company, valued at approximately $61,662,655.18. This represents a 13.90% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 2,284,426 shares of company stock valued at $96,630,284. Company insiders own 3.61% of the company's stock.

Hedge Funds Weigh In On Unity Software

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its stake in Unity Software by 5.9% in the first quarter. Vanguard Group Inc. now owns 32,964,521 shares of the company's stock valued at $645,775,000 after purchasing an additional 1,841,486 shares during the last quarter. Slate Path Capital LP boosted its holdings in Unity Software by 25.4% in the second quarter. Slate Path Capital LP now owns 20,016,952 shares of the company's stock worth $484,410,000 after acquiring an additional 4,048,484 shares in the last quarter. Atreides Management LP boosted its holdings in Unity Software by 146.7% in the first quarter. Atreides Management LP now owns 9,430,955 shares of the company's stock worth $184,752,000 after acquiring an additional 5,607,572 shares in the last quarter. Norges Bank acquired a new stake in Unity Software in the second quarter worth about $151,221,000. Finally, Geode Capital Management LLC boosted its holdings in Unity Software by 0.7% in the second quarter. Geode Capital Management LLC now owns 5,064,703 shares of the company's stock worth $122,587,000 after acquiring an additional 36,105 shares in the last quarter. Hedge funds and other institutional investors own 73.46% of the company's stock.

About Unity Software

Unity Software Inc operates a real-time 3D development platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company offers its solutions directly through its online store and field sales operations in North America, Denmark, Finland, the United Kingdom, Germany, Japan, China, Singapore, and South Korea, as well as indirectly through independent distributors and resellers worldwide.

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