Unity Software (NYSE:U) Earns Outperform Rating from Wedbush

Key Points

• Wedbush reissued an Outperform rating on Unity with a $30 price target, implying roughly a 75.8% upside from the current share price.
• Unity said preliminary Q1 revenue of $505–$508M and adjusted EBITDA of $130–$135M topped guidance and it will exit non‑strategic ad businesses, triggering an after‑hours rally and more bullish analyst sentiment (consensus: Moderate Buy, average target $38.36).

Unity Software (NYSE:U - Get Free Report)'s stock had its "outperform" rating reissued by equities researchers at Wedbush in a research report issued to clients and investors on Friday,Benzinga reports. They currently have a $30.00 price objective on the stock. Wedbush's price target indicates a potential upside of 75.81% from the company's current price.

A number of other research analysts have also recently commented on U. Citigroup decreased their price target on Unity Software from $52.00 to $43.00 and set a "buy" rating on the stock in a research note on Thursday, February 12th. Jefferies Financial Group lifted their price objective on Unity Software from $49.00 to $55.00 and gave the company a "buy" rating in a research note on Monday, January 5th. Piper Sandler upgraded Unity Software from a "neutral" rating to an "overweight" rating and boosted their price objective for the company from $43.00 to $59.00 in a report on Thursday, December 11th. Needham & Company LLC reissued a "buy" rating and set a $35.00 target price on shares of Unity Software in a research note on Friday. Finally, Benchmark restated a "hold" rating on shares of Unity Software in a report on Monday, February 2nd. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Unity Software currently has a consensus rating of "Moderate Buy" and an average target price of $38.36.

Unity Software Price Performance

Shares of U opened at $17.06 on Friday. The firm has a 50-day simple moving average of $24.77 and a two-hundred day simple moving average of $35.99. The stock has a market cap of $7.39 billion, a PE ratio of -17.78, a P/E/G ratio of 9.55 and a beta of 2.14. Unity Software has a 1-year low of $15.33 and a 1-year high of $52.15. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.84 and a quick ratio of 1.84.

Unity Software (NYSE:U - Get Free Report) last issued its quarterly earnings data on Wednesday, February 11th. The company reported $0.24 EPS for the quarter, topping the consensus estimate of $0.20 by $0.04. The firm had revenue of $503.09 million for the quarter, compared to analyst estimates of $490.64 million. Unity Software had a negative net margin of 21.77% and a negative return on equity of 4.76%. The business's revenue for the quarter was up 10.1% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.30) EPS. As a group, analysts forecast that Unity Software will post -1.25 EPS for the current year.

Insider Buying and Selling at Unity Software

In other news, CFO Jarrod Yahes sold 12,196 shares of the stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total value of $220,381.72. Following the sale, the chief financial officer directly owned 533,933 shares in the company, valued at approximately $9,648,169.31. This trade represents a 2.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Mark Barrysmith sold 10,578 shares of Unity Software stock in a transaction on 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 owned 383,901 shares of the company's stock, valued at approximately $6,937,091.07. This trade represents a 2.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 41,684 shares of company stock valued at $773,350 in the last 90 days. Company insiders own 3.61% of the company's stock.

Institutional Investors Weigh In On Unity Software

Hedge funds have recently bought and sold shares of the stock. Wellington Management Group LLP grew its position in shares of Unity Software by 58.7% during the third quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company's stock worth $729,284,000 after buying an additional 6,734,285 shares in the last quarter. Norges Bank purchased a new stake in shares of Unity Software during the second quarter worth approximately $151,221,000. Slate Path Capital LP raised 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 valued at $484,410,000 after acquiring an additional 4,048,484 shares in the last quarter. Massachusetts Financial Services Co. MA purchased a new position in Unity Software in the third quarter worth approximately $106,233,000. Finally, Duquesne Family Office LLC acquired a new position in Unity Software during the 2nd quarter worth approximately $42,932,000. Institutional investors and hedge funds own 73.46% of the company's stock.

Key Unity Software News

Here are the key news stories impacting Unity Software this week:

• Positive Sentiment: Unity reported preliminary Q1 revenue of $505M–$508M (above guidance of $480M–$490M) and adjusted EBITDA of $130M–$135M (vs guidance $105M–$110M); management attributed the outperformance to Unity V and said it will exit non‑strategic ad businesses to enhance growth and profitability. Unity Releases Preliminary First Quarter Results Exceeding Guidance; Will Enhance Growth and Profitability by Exiting Non-Strategic Ad Businesses
• Positive Sentiment: Market showed an immediate reaction: Unity rallied in after‑hours trading after the company raised Q1 revenue/EBITDA above Street expectations, signaling near‑term operational improvement. Unity Software rallies by over 14% after-hours on fresh Q1 revenue guidance above Street expectations
• Positive Sentiment: Analysts remain constructive: Citizens reiterated a Market Outperform rating and a $37 price target, arguing the sell‑off has left Unity undervalued given its AI/growth prospects. Analyst coverage supports upside if execution continues. Unity (U) Stock Rated Outperform on Undervalued AI Growth Potential
• Positive Sentiment: Investment commentary is turning bullish for buy‑the‑dip investors who view Unity as a beaten‑down growth name with improving fundamentals after the recent guidance beat. 1 Beaten-Down Growth Stock Investors Can Buy on the Dip
• Neutral Sentiment: Unity is being highlighted in “stocks to watch” roundups — increased visibility can drive intraday volume but doesn’t change fundamentals by itself. Stocks to Watch: Datacentrex, Unity Software, Veritone, Zenas BioPharma
• Neutral Sentiment: General market columns have placed Unity on investors’ radars along with other large names; these mentions can attract short‑term traders but are not a catalyst on their own. Meta, Kodiak Sciences, Unity Software, Lumentum Holdings and Reddit: Why these 5 stocks are on investors' radars today
• Neutral Sentiment: Additional writeups repeat the analyst optimism (reiterations and price‑target commentary); useful for sentiment tracking but largely duplicative of the above analyst coverage. Unity (U) Stock Rated Outperform on Undervalued AI Growth Potential
• Neutral Sentiment: One linked item covers Digital Turbine (APPS) and broader apps/revenue trends — not directly about Unity but relevant to ad/monetization themes investors watch across the sector. APPS' Revenue Per Device in ODS Grows in Double Digits: What's Ahead?

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.