Unity Software (NYSE:U) Given New $40.00 Price Target at Needham & Company LLC

Unity Software (NYSE:U - Get Free Report) had its price target boosted by Needham & Company LLC from $35.00 to $40.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Needham & Company LLC's price target indicates a potential upside of 49.89% from the stock's current price.

Several other equities analysts have also recently weighed in on the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Unity Software in a research report on Wednesday, January 21st. Oppenheimer raised Unity Software from a "market perform" rating to an "outperform" rating and set a $38.00 target price for the company in a report on Tuesday, February 10th. Wall Street Zen downgraded shares of Unity Software from a "buy" rating to a "hold" rating in a report on Saturday, March 28th. Bank of America boosted their price objective on shares of Unity Software from $19.00 to $21.00 and gave the company a "neutral" rating in a research note on Friday, March 27th. Finally, UBS Group increased their target price on shares of Unity Software from $26.00 to $28.00 and gave the stock a "neutral" rating in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $38.04.

Unity Software Price Performance

Shares of NYSE:U opened at $26.69 on Friday. The firm has a market capitalization of $11.64 billion, a PE ratio of -27.80, a P/E/G ratio of 10.05 and a beta of 2.04. The company has a quick ratio of 1.84, a current ratio of 1.84 and a debt-to-equity ratio of 0.52. The company has a 50-day moving average price of $22.06 and a two-hundred day moving average price of $32.57. Unity Software has a twelve month low of $16.78 and a twelve month high of $52.15.

Unity Software (NYSE:U - Get Free Report) last announced its quarterly earnings results on Wednesday, February 11th. The company reported $0.24 EPS 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 company had revenue of $503.09 million for the quarter, compared to analysts' expectations of $490.64 million. During the same period in the prior year, the company posted ($0.30) EPS. Unity Software's revenue was up 10.1% compared to the same quarter last year. Equities analysts forecast that Unity Software will post 0.13 EPS for the current year.

Insider Buying and Selling

In other Unity Software news, COO Alexander Blum sold 10,164 shares of the business's stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total value of $183,663.48. Following the completion of the transaction, the chief operating officer owned 550,966 shares of the company's stock, valued at $9,955,955.62. The trade was a 1.81% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Mark Barrysmith sold 10,578 shares of the firm's stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total transaction of $191,144.46. Following the sale, the chief accounting officer owned 383,901 shares in the company, valued at approximately $6,937,091.07. This trade represents a 2.68% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 41,684 shares of company stock worth $773,350. Insiders own 0.77% of the company's stock.

Institutional Investors Weigh In On Unity Software

A number of large investors have recently added to or reduced their stakes in the company. Wellington Management Group LLP lifted its stake in 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 purchasing an additional 6,734,285 shares during the last quarter. Norges Bank purchased a new position in shares of Unity Software during the 4th quarter valued at about $230,285,000. Massachusetts Financial Services Co. MA bought a new stake in Unity Software in the 3rd quarter worth approximately $106,233,000. Duquesne Family Office LLC purchased a new stake in Unity Software in the second quarter worth approximately $42,932,000. Finally, Dimensional Fund Advisors LP grew its position in Unity Software by 52.8% during the first quarter. Dimensional Fund Advisors LP now owns 4,245,014 shares of the company's stock valued at $93,089,000 after acquiring an additional 1,465,962 shares during the last quarter. Hedge funds and other institutional investors own 73.46% of the company's stock.

Key Stories Impacting Unity Software

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

• Positive Sentiment: Management reiterated strong growth and an ambitious product roadmap on the Q1 earnings call, projecting strategic ad revenue to grow ~50% year‑over‑year and signaling margin expansion in Q2. Fool: Q1 2026 Earnings Call Transcript
• Positive Sentiment: Revenue beat: Unity reported Q1 revenue of ~$508M, up ~17% YoY and slightly above consensus, showing continued top-line momentum. Proactive: Unity Q1 Revenue Beat
• Positive Sentiment: Analyst support: BTIG raised its price target to $43 and kept a Buy rating (large upside vs. current levels), reflecting bullish analyst conviction on the company’s growth path. StreetInsider: BTIG PT Raise
• Positive Sentiment: Options activity showed notable bullish interest — unusually high call buying (≈57,980 calls), which can signal investor/speculator optimism for near‑term upside.
• Positive Sentiment: Sector tailwind: gaming/AI chip rally (e.g., AMD strength) is lifting gaming-platform peers and ETFs, a positive backdrop for Unity’s addressable market. ETF Trends: GAMR Rally
• Neutral Sentiment: Modest analyst action: UBS raised its price target to $28 — supportive but a smaller lift compared with other firms. American Banking News: UBS PT Raise
• Neutral Sentiment: Q2 revenue guidance was issued at roughly $505M–$515M, essentially in line with consensus — suggests steady near‑term revenue outlook but limited upside surprise. Yahoo Finance: Q1 Results & Guidance
• Negative Sentiment: Large one-time charge: Unity took a $279M impairment tied to winding down the ironSource ad network and selling its Supersonic publishing unit — a material hit to reported profitability and a near-term headwind. Proactive: Impairment Charge
• Negative Sentiment: Earnings nuance: GAAP/reported EPS and margins were pressured — Q1 EPS missed by a penny ($0.23 vs. $0.24 estimate) and net margin/ROE remain negative, which can fuel short-term investor concern. Zacks: EPS Miss

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.

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