Unity Software (NYSE:U) Given New $51.00 Price Target at BTIG Research

Key Points

• BTIG Research raised Unity Software’s price target to $51 from $43 and maintained a “Buy” rating, implying 23.83% upside from the prior close. The broader analyst consensus remains “Moderate Buy,” with an average target of $38.93.
• Unity shares rose 16.1% to $41.19 after the company reported quarterly revenue of $546.47 million and earnings of $0.28 per share, beating analyst expectations. Revenue increased 24% year over year, although the company continued to post negative net margins.
• Institutional investors own 73.46% of Unity’s shares, while insiders sold approximately $5.39 million worth of stock during the latest quarter, primarily to cover tax obligations related to vested equity awards.

Unity Software (NYSE:U - Get Free Report) had its price objective boosted by analysts at BTIG Research from $43.00 to $51.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. BTIG Research's price objective indicates a potential upside of 23.83% from the stock's previous close.

U has been the topic of a number of other reports. Piper Sandler reiterated an "overweight" rating and set a $45.00 price target (up from $40.00) on shares of Unity Software in a research note on Thursday, July 30th. Citigroup cut their price target on Unity Software from $43.00 to $40.00 and set a "buy" rating for the company in a report on Thursday, April 30th. Weiss Ratings upgraded shares of Unity Software from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday. Wedbush lifted their target price on Unity Software from $32.00 to $36.00 and gave the company an "outperform" rating in a report on Wednesday, July 22nd. Finally, Wells Fargo & Company lifted their price target on shares of Unity Software from $35.00 to $36.00 and gave the company an "overweight" rating in a research report on Tuesday, July 7th. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Unity Software presently has an average rating of "Moderate Buy" and an average target price of $38.93.

Unity Software Trading Up 16.1%

NYSE:U traded up $5.72 during trading hours on Thursday, hitting $41.19. The company had a trading volume of 31,129,793 shares, compared to its average volume of 13,474,761. Unity Software has a 1 year low of $16.78 and a 1 year high of $52.15. The company has a market cap of $17.98 billion, a P/E ratio of -26.25, a P/E/G ratio of 4.17 and a beta of 2.04. The company has a 50-day moving average of $29.67 and a 200 day moving average of $26.57. The company has a current ratio of 1.95, a quick ratio of 1.95 and a debt-to-equity ratio of 0.56.

Unity Software (NYSE:U - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.28 earnings per share for the quarter, beating the consensus estimate of ($0.11) by $0.39. The firm had revenue of $546.47 million for the quarter, compared to analysts' expectations of $514.72 million. Unity Software had a negative net margin of 34.99% and a negative return on equity of 1.30%. The company's revenue was up 24.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.18 EPS. Sell-side analysts expect that Unity Software will post 0.35 earnings per share for the current year.

Insider Buying and Selling at Unity Software

In other news, CFO Jarrod Yahes sold 24,021 shares of Unity Software stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $27.18, for a total transaction of $652,890.78. Following the sale, the chief financial officer owned 704,360 shares in the company, valued at $19,144,504.80. This trade represents a 3.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Rebecca Berenice Boyden sold 952 shares of the company's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $27.20, for a total transaction of $25,894.40. Following the completion of the transaction, the senior vice president owned 309,445 shares of the company's stock, valued at $8,416,904. This trade represents a 0.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 198,321 shares of company stock worth $5,390,783. Insiders own 0.77% of the company's stock.

Institutional Investors Weigh In On Unity Software

A number of hedge funds have recently bought and sold shares of U. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Unity Software by 5.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 813,176 shares of the company's stock worth $15,930,000 after buying an additional 45,481 shares during the last quarter. Focus Partners Wealth bought a new position in shares of Unity Software during the first quarter worth about $260,000. Northwestern Mutual Wealth Management Co. grew its stake in Unity Software by 28.9% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 5,542 shares of the company's stock worth $134,000 after purchasing an additional 1,241 shares in the last quarter. California Public Employees Retirement System grew its stake in Unity Software by 11.3% in the second quarter. California Public Employees Retirement System now owns 520,774 shares of the company's stock worth $12,603,000 after purchasing an additional 53,015 shares in the last quarter. Finally, Sei Investments Co. increased its holdings in Unity Software by 1,135.6% in the second quarter. Sei Investments Co. now owns 224,715 shares of the company's stock valued at $5,438,000 after buying an additional 206,529 shares during the last quarter. Institutional investors and hedge funds 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: Q2 results exceeded expectations: Unity reported revenue of approximately $546.5 million, up 23.9% year over year and above the roughly $514 million analyst consensus. Adjusted earnings were $0.28 per share, beating estimates near $0.24-$0.25 and improving substantially from the prior-year loss. Unity Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Upbeat third-quarter outlook: Unity forecast revenue of $540 million to $550 million for Q3, ahead of the approximately $533.8 million consensus estimate. The above-market outlook was a key catalyst for the stock’s advance. Unity Reports Upbeat Q2 CY2026
• Positive Sentiment: Management characterized the quarter as exceptional: Chief Executive Officer commentary described Q2 as arguably the best quarter in Unity’s history as a public company, reinforcing the market’s view that product execution and financial performance are improving. Unity Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Trading activity reflected heightened speculation: Investors purchased about 41,488 Unity call options, roughly 30% above average daily call volume. This indicates increased bullish positioning, but options activity is not a measure of fundamental performance.
• Neutral Sentiment: Risks remain: Unity continues to report a negative net margin and negative return on equity, while UBS maintained a Hold rating before the earnings release. Investors may also weigh the stock’s sizable rally and elevated valuation against the improved outlook. UBS Remains a Hold on Unity Software

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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