Unity Software (NYSE:U) Given New $29.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo cut its price target on Unity from $38 to $29 but kept an "overweight" rating, which the firm says implies roughly a 69.95% upside from the prior close.
• Unity reported preliminary Q1 revenue of $505M–$508M and adjusted EBITDA of $130M–$135M—both above guidance—and announced it will exit non‑strategic ad businesses, sparking a >14% after‑hours rally.
• Analyst views are mixed but broadly constructive: MarketBeat shows a consensus "Moderate Buy" with an average price target of $38.36, while individual targets among brokers range roughly from $27 to $48.

Unity Software (NYSE:U - Get Free Report) had its price target cut by equities researchers at Wells Fargo & Company from $38.00 to $29.00 in a report released on Friday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Wells Fargo & Company's price objective would suggest a potential upside of 69.95% from the stock's previous close.

Several other equities research analysts have also recently issued reports on U. Barclays decreased their price objective on Unity Software from $35.00 to $28.00 and set an "equal weight" rating on the stock in a report on Thursday, February 12th. BTIG Research decreased their price target on Unity Software from $41.00 to $39.00 and set a "buy" rating on the stock in a research note on Friday. The Goldman Sachs Group lowered their price target on Unity Software from $47.00 to $27.00 and set a "neutral" rating for the company in a report on Thursday, February 12th. Arete Research raised shares of Unity Software from a "neutral" rating to a "buy" rating and set a $48.00 price objective for the company in a research note on Monday, December 1st. Finally, UBS Group cut their price objective on shares of Unity Software from $46.00 to $32.00 and set a "neutral" rating on the stock in a report on Tuesday, February 10th. One research 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 stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $38.36.

Unity Software Price Performance

Unity Software stock opened at $17.06 on Friday. The stock has a market capitalization of $7.39 billion, a P/E ratio of -17.78, a P/E/G ratio of 9.55 and a beta of 2.14. Unity Software has a 12-month low of $15.33 and a 12-month 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. The firm's 50-day moving average is $24.77 and its two-hundred day moving average is $35.99.

Unity Software (NYSE:U - Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The company reported $0.24 earnings per share for the quarter, beating analysts' consensus estimates of $0.20 by $0.04. Unity Software had a negative net margin of 21.77% and a negative return on equity of 4.76%. The business had revenue of $503.09 million during the quarter, compared to analyst estimates of $490.64 million. During the same quarter in the previous year, the business posted ($0.30) earnings per share. The company's revenue was up 10.1% on a year-over-year basis. Equities analysts predict that Unity Software will post -1.25 earnings per share for the current year.

Insider Activity at Unity Software

In other Unity Software news, CFO Jarrod Yahes sold 12,196 shares of the business's stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total transaction of $220,381.72. Following the completion of the sale, the chief financial officer owned 533,933 shares of the company's stock, valued at approximately $9,648,169.31. The trade was a 2.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Mark Barrysmith sold 10,578 shares of the company's stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total value of $191,144.46. Following the sale, the chief accounting officer owned 383,901 shares of the company's stock, valued at $6,937,091.07. This represents a 2.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 41,684 shares of company stock worth $773,350. 3.61% of the stock is owned by insiders.

Institutional Trading of Unity Software

Institutional investors and hedge funds have recently bought and sold shares of the business. GAMMA Investing LLC lifted its position in Unity Software by 10.8% during the third quarter. GAMMA Investing LLC now owns 2,967 shares of the company's stock valued at $119,000 after buying an additional 288 shares in the last quarter. Newbridge Financial Services Group Inc. raised its stake in shares of Unity Software by 12.9% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 2,696 shares of the company's stock valued at $108,000 after acquiring an additional 308 shares during the period. Xponance Inc. lifted its holdings in shares of Unity Software by 1.8% during the 3rd quarter. Xponance Inc. now owns 18,291 shares of the company's stock valued at $732,000 after acquiring an additional 328 shares in the last quarter. Larson Financial Group LLC lifted its holdings in shares of Unity Software by 88.1% during the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company's stock valued at $29,000 after acquiring an additional 341 shares in the last quarter. Finally, Swiss Life Asset Management Ltd boosted its position in Unity Software by 3.1% during the 4th quarter. Swiss Life Asset Management Ltd now owns 14,861 shares of the company's stock worth $656,000 after purchasing an additional 449 shares during the period. Institutional investors and hedge funds own 73.46% of the company's stock.

More 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?

Unity Software Company Profile

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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