Unity Software (NYSE:U) Given New $43.00 Price Target at BTIG Research

Key Points

• BTIG Research raised its price target on Unity to $43.00 (from $39.00) and keeps a "buy" rating, implying roughly a 60.98% upside from the stock's current level.
• Unity reported Q1 beats with about $503M in revenue and $0.24 EPS, but a one‑time $279M impairment tied to ad‑network and publishing exits clouds near‑term profitability.
• The stock traded down to $26.71 midday (market cap ≈ $11.7B); analysts' consensus is a "Moderate Buy" with an average price target of $37.25.

Unity Software (NYSE:U - Get Free Report) had its price objective boosted by equities researchers at BTIG Research from $39.00 to $43.00 in a research report issued on Thursday,Benzinga reports. The firm presently has a "buy" rating on the stock. BTIG Research's target price points to a potential upside of 60.98% from the stock's current price.

Several other equities analysts have also recently commented on U. Freedom Capital raised shares of Unity Software to a "strong-buy" rating in a research report on Thursday, January 15th. Morgan Stanley lifted their target price on Unity Software from $30.00 to $32.00 and gave the company an "overweight" rating in a report on Friday, March 27th. Benchmark restated a "hold" rating on shares of Unity Software in a report on Monday, February 2nd. The Goldman Sachs Group decreased their price objective on Unity Software from $47.00 to $27.00 and set a "neutral" rating for the company in a research note on Thursday, February 12th. Finally, Bank of America upped their target price on shares of Unity Software from $19.00 to $21.00 and gave the stock a "neutral" rating in a research note on Friday, March 27th. 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 company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $37.25.

Unity Software Trading Down 2.1%

Unity Software stock traded down $0.57 during midday trading on Thursday, reaching $26.71. 25,742,752 shares of the stock traded hands, compared to its average volume of 16,494,994. The firm has a market cap of $11.66 billion, a PE ratio of -27.92, a price-to-earnings-growth ratio of 10.07 and a beta of 2.04. The company has a current ratio of 1.84, a quick ratio of 1.84 and a debt-to-equity ratio of 0.52. The company has a 50-day simple moving average of $21.89 and a two-hundred day simple moving average of $32.63. Unity Software has a 12-month low of $16.78 and a 12-month high of $52.15.

Unity Software (NYSE:U - Get Free Report) last issued its quarterly earnings results on Wednesday, February 11th. The company reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter, compared to analysts' expectations of $490.64 million. During the same quarter in the prior year, the company earned ($0.30) earnings per share. The business's quarterly revenue was up 10.1% on a year-over-year basis. Research analysts expect that Unity Software will post 0.13 earnings per share for the current fiscal year.

Insider Transactions at Unity Software

In other news, COO Alexander Blum sold 2,541 shares of the company's stock in a transaction on Friday, February 27th. The shares were sold at an average price of $18.76, for a total value of $47,669.16. Following the completion of the transaction, the chief operating officer owned 548,425 shares in the company, valued at approximately $10,288,453. This represents a 0.46% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Jarrod Yahes sold 6,205 shares of the stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $21.03, for a total transaction of $130,491.15. Following the completion of the transaction, the chief financial officer directly owned 728,381 shares in the company, valued at $15,317,852.43. This trade represents a 0.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 41,684 shares of company stock worth $773,350. 0.77% of the stock is currently owned by insiders.

Institutional Trading of Unity Software

Large investors have recently made changes to their positions in the company. Root Financial Partners LLC purchased a new stake in Unity Software in the third quarter valued at approximately $27,000. REAP Financial Group LLC purchased a new position in shares of Unity Software during the fourth quarter worth approximately $28,000. Larson Financial Group LLC increased its holdings in shares of Unity Software by 88.1% in 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 during the period. V Square Quantitative Management LLC purchased a new stake in Unity Software in the 4th quarter valued at $30,000. Finally, IFP Advisors Inc purchased a new stake in Unity Software in the 3rd quarter valued at $33,000. 73.46% of the stock is owned by institutional investors and hedge funds.

More Unity Software News

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

• Positive Sentiment: Q1 revenue beat: Unity reported Q1 revenue of about $508M, up ~17% year‑over‑year and slightly above consensus, showing continued sales growth. Read More.
• Positive Sentiment: Large call‑option activity: Unusually heavy call buying (roughly 58k calls) suggests some traders are positioning for upside or event-driven moves. (May indicate bullish speculative interest; watch open interest/expiry.)
• Positive Sentiment: Analyst support: UBS raised its price target to $28, a modest positive from the sell‑side that can support the stock. Read More.
• Neutral Sentiment: Guidance roughly in line: Unity updated Q2 revenue guidance to a $505M–$515M range, which is close to consensus — neither a clear beat nor a big miss. (Guidance tends to mute extreme moves.)
• Neutral Sentiment: Earnings call transcript available for details — useful for color on product roadmaps, cost saves, and ad business wind‑down. Read More.
• Negative Sentiment: Major impairment charge: Unity took a $279M impairment tied to shutting down the ironSource ad network and selling its Supersonic publishing unit — a sizable one‑time hit that clouds profitability and raises execution questions. Read More.
• Negative Sentiment: EPS miss / mixed earnings read: Reported EPS was roughly $0.23–$0.24 (sources vary) and at least one estimate (Zacks) flagged a $0.01 miss, leaving investors focused on margins and the impact of the impairment. Read More.

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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