Short Interest in Unity Software Inc. (NYSE:U) Grows By 11,835.0%

Key Points

• Unity Software Inc. experienced an extraordinary surge in short interest of 11,835.0% in July, reaching a total of 37,810,000 shares as of July 15th, compared to just 316,800 shares at the end of June.
• In its latest quarterly earnings report, Unity posted an EPS of (0.19), exceeding analysts' expectations of (0.38), despite a 5.5% decline in year-over-year revenue.
• Analysts have mixed views on the stock, with recent price targets ranging from $19.00 to $39.00, while the average target price stands at $27.22 and the overall rating is "Hold."

Unity Software Inc. (NYSE:U - Get Free Report) saw a large growth in short interest in the month of July. As of July 15th, there was short interest totaling 37,810,000 shares, agrowthof11,835.0% from the June 30th total of 316,800 shares. Based on an average daily trading volume, of 13,380,000 shares, the short-interest ratio is currently 2.8 days. Based on an average daily trading volume, of 13,380,000 shares, the short-interest ratio is currently 2.8 days.

Insider Activity at Unity Software

In related news, Director Shlomo Dovrat sold 50,000 shares of Unity Software stock in a transaction on Wednesday, July 9th. The shares were sold at an average price of $30.01, for a total value of $1,500,500.00. Following the completion of the sale, the director owned 189,089 shares of the company's stock, valued at approximately $5,674,560.89. The trade was a 20.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Matthew S. Bromberg sold 133,072 shares of the business's stock in a transaction dated Tuesday, May 27th. The stock was sold at an average price of $21.24, for a total transaction of $2,826,449.28. Following the transaction, the chief executive officer owned 1,222,812 shares in the company, valued at approximately $25,972,526.88. The trade was a 9.81% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 1,110,142 shares of company stock worth $27,963,282. 3.61% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Strs Ohio bought a new stake in Unity Software in the second quarter worth about $1,264,000. Assetmark Inc. purchased a new position in shares of Unity Software in the second quarter worth about $97,000. IQ EQ FUND MANAGEMENT IRELAND Ltd increased its stake in shares of Unity Software by 57.7% in the second quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 62,854 shares of the company's stock worth $1,521,000 after purchasing an additional 23,006 shares in the last quarter. Y Intercept Hong Kong Ltd purchased a new position in shares of Unity Software in the second quarter worth about $3,930,000. Finally, Maytree Asset Management Ltd increased its stake in shares of Unity Software by 327.8% in the second quarter. Maytree Asset Management Ltd now owns 102,735 shares of the company's stock worth $2,486,000 after purchasing an additional 78,722 shares in the last quarter. 73.46% of the stock is owned by institutional investors.

Unity Software Trading Up 1.3%

NYSE U traded up $0.44 on Tuesday, hitting $34.45. The company's stock had a trading volume of 7,489,774 shares, compared to its average volume of 12,104,248. The company has a quick ratio of 2.74, a current ratio of 2.74 and a debt-to-equity ratio of 0.70. Unity Software has a 1-year low of $13.90 and a 1-year high of $38.96. The company's 50-day moving average is $27.77 and its 200 day moving average is $23.72. The firm has a market cap of $14.32 billion, a PE ratio of -30.80 and a beta of 2.32.

Unity Software (NYSE:U - Get Free Report) last posted its quarterly earnings data on Wednesday, May 7th. The company reported ($0.19) earnings per share for the quarter, topping the consensus estimate of ($0.38) by $0.19. Unity Software had a negative net margin of 25.21% and a negative return on equity of 14.12%. The company had revenue of $435.00 million during the quarter, compared to analysts' expectations of $415.77 million. During the same period in the prior year, the company posted $0.28 earnings per share. Unity Software's revenue for the quarter was down 5.5% compared to the same quarter last year. As a group, analysts predict that Unity Software will post -1.25 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of equities analysts have issued reports on U shares. Bank of America started coverage on shares of Unity Software in a research note on Thursday, June 26th. They issued an "underperform" rating and a $15.00 price objective on the stock. Jefferies Financial Group raised their price objective on shares of Unity Software from $29.00 to $35.00 and gave the company a "buy" rating in a research note on Wednesday, July 16th. Stifel Nicolaus reduced their price objective on shares of Unity Software from $35.00 to $28.00 and set a "buy" rating on the stock in a research note on Thursday, May 8th. UBS Group raised their price objective on shares of Unity Software from $22.00 to $33.00 and gave the company a "neutral" rating in a research note on Thursday, July 17th. Finally, Wells Fargo & Company increased their target price on shares of Unity Software from $19.00 to $24.00 and gave the stock an "equal weight" rating in a report on Monday, July 7th. Two analysts have rated the stock with a sell rating, ten have assigned a hold rating, seven have given a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat, Unity Software currently has an average rating of "Hold" and a consensus price target of $27.22.

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.