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

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 significant 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 trading volume of 13,380,000 shares, the short-interest ratio is presently 2.8 days. Based on an average trading volume of 13,380,000 shares, the short-interest ratio is presently 2.8 days.

Unity Software Price Performance

NYSE:U traded down $1.52 during trading hours on Friday, hitting $31.84. The company's stock had a trading volume of 10,168,867 shares, compared to its average volume of 12,106,297. The company has a debt-to-equity ratio of 0.70, a quick ratio of 2.74 and a current ratio of 2.74. The company has a market capitalization of $13.24 billion, a PE ratio of -28.43 and a beta of 2.29. Unity Software has a 52-week low of $13.90 and a 52-week high of $38.96. The business's 50-day moving average is $27.28 and its two-hundred day moving average is $23.55.

Unity Software (NYSE:U - Get Free Report) last issued its quarterly earnings results on Wednesday, May 7th. The company reported ($0.19) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.38) by $0.19. The firm had revenue of $435.00 million for the quarter, compared to analyst estimates of $415.77 million. Unity Software had a negative return on equity of 14.12% and a negative net margin of 25.21%. The firm's quarterly revenue was down 5.5% on a year-over-year basis. During the same period last year, the company earned $0.28 EPS. As a group, research analysts anticipate that Unity Software will post -1.25 EPS for the current fiscal year.

Analysts Set New Price Targets

U has been the subject of several recent analyst reports. Wells Fargo & Company increased their price objective on shares of Unity Software from $19.00 to $24.00 and gave the stock an "equal weight" rating in a research report on Monday, July 7th. Stifel Nicolaus dropped 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. Wall Street Zen lowered shares of Unity Software from a "buy" rating to a "hold" rating in a research report on Friday, June 27th. Wedbush restated an "outperform" rating and set a $39.00 price objective on shares of Unity Software in a report on Wednesday. Finally, Needham & Company LLC reduced their target price on shares of Unity Software from $33.00 to $30.00 and set a "buy" rating for the company in a research note on Thursday, May 8th. Two analysts have rated the stock with a sell rating, ten have given a hold rating, seven have assigned a buy rating and two have issued a strong buy rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $27.22.

Insider Activity at Unity Software

In related news, CEO Matthew S. Bromberg sold 133,072 shares of the firm's stock in a transaction that occurred on Tuesday, May 27th. The shares were sold at an average price of $21.24, for a total value of $2,826,449.28. Following the completion of the sale, the chief executive officer owned 1,222,812 shares of the company's stock, valued at $25,972,526.88. This trade represents a 9.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Tomer Bar-Zeev sold 50,000 shares of the firm's stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $32.97, for a total transaction of $1,648,500.00. Following the completion of the sale, the director directly owned 2,298,146 shares of the company's stock, valued at approximately $75,769,873.62. This represents a 2.13% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,110,142 shares of company stock valued at $27,963,282. 3.61% of the stock is owned by corporate insiders.

Institutional Trading of Unity Software

Several hedge funds have recently added to or reduced their stakes in the business. Cornerstone Planning Group LLC raised its holdings in Unity Software by 30,300.0% in the 1st quarter. Cornerstone Planning Group LLC now owns 1,216 shares of the company's stock valued at $25,000 after acquiring an additional 1,212 shares in the last quarter. CX Institutional acquired a new stake in Unity Software during the 2nd quarter worth $25,000. Anderson Financial Strategies LLC bought a new position in Unity Software during the 4th quarter worth about $28,000. Banque Transatlantique SA bought a new position in shares of Unity Software in the 1st quarter valued at about $28,000. Finally, Point72 Asia Singapore Pte. Ltd. acquired a new stake in Unity Software during the fourth quarter worth approximately $36,000. 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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