Unity Software (NYSE:U) Given "Outperform" Rating at Wedbush

Key Points

• Wedbush reiterated an "Outperform" rating on Unity Software with a $30 price target, implying about a 16% upside from the prior close.
• Across sell-side analysts the stock has an average rating of "Moderate Buy" with a consensus price target of $37.41, though individual targets and ratings vary widely.
• Unity recently beat quarterly EPS and revenue estimates (EPS $0.24 vs. $0.20 expected; revenue $503.1M, up 10.1% year-over-year) despite negative net margins and ongoing insider selling activity.

Unity Software (NYSE:U - Get Free Report)'s stock had its "outperform" rating reiterated by equities researchers at Wedbush in a research report issued to clients and investors on Thursday,Benzinga reports. They presently have a $30.00 target price on the stock. Wedbush's price target would suggest a potential upside of 16.27% from the company's previous close.

Several other brokerages also recently commented on U. Bank of America upped their price target on shares of Unity Software from $19.00 to $21.00 and gave the company a "neutral" rating in a report on Friday, March 27th. Needham & Company LLC restated a "buy" rating and set a $35.00 target price on shares of Unity Software in a research report on Friday, March 27th. UBS Group cut their target price on Unity Software from $46.00 to $32.00 and set a "neutral" rating on the stock in a research note on Tuesday, February 10th. Wall Street Zen downgraded Unity Software from a "buy" rating to a "hold" rating in a report on Saturday, March 28th. Finally, Barclays dropped their price objective on Unity Software from $35.00 to $28.00 and set an "equal weight" rating for the company in a report on Thursday, February 12th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $37.41.

Unity Software Stock Performance

NYSE U opened at $25.80 on Thursday. The business's 50 day moving average price is $21.34 and its 200-day moving average price is $32.85. Unity Software has a fifty-two week low of $16.78 and a fifty-two week high of $52.15. The company has a market cap of $11.26 billion, a P/E ratio of -27.08, a P/E/G ratio of 9.81 and a beta of 2.00. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.84 and a current ratio of 1.84.

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 for the quarter, compared to analysts' expectations of $490.64 million. During the same quarter in the previous year, the business posted ($0.30) earnings per share. The business's revenue was up 10.1% compared to the same quarter last year. Sell-side analysts predict that Unity Software will post 0.13 earnings per share for the current year.

Insider Activity at Unity Software

In related news, COO Alexander Blum sold 2,541 shares of the stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $18.76, for a total value of $47,669.16. Following the transaction, the chief operating officer owned 548,425 shares of the company's stock, valued at $10,288,453. This represents a 0.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Mark Barrysmith sold 10,578 shares of the firm's stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total value of $191,144.46. Following the transaction, the chief accounting officer owned 383,901 shares in the company, valued at $6,937,091.07. The trade was a 2.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 41,684 shares of company stock worth $773,350. Company insiders own 0.77% of the company's stock.

Institutional Trading of Unity Software

Several institutional investors and hedge funds have recently made changes to their positions in the company. Praxis Investment Management Inc. increased its position in Unity Software by 14.4% during the 1st quarter. Praxis Investment Management Inc. now owns 13,488 shares of the company's stock valued at $296,000 after purchasing an additional 1,698 shares during the period. V Square Quantitative Management LLC boosted its stake in shares of Unity Software by 318.8% during the first quarter. V Square Quantitative Management LLC now owns 2,881 shares of the company's stock valued at $63,000 after purchasing an additional 2,193 shares in the last quarter. Leonteq Securities AG increased its holdings in Unity Software by 3,026.9% during the first quarter. Leonteq Securities AG now owns 164,537 shares of the company's stock valued at $3,610,000 after buying an additional 159,275 shares during the period. Impact Partnership Wealth LLC purchased a new position in Unity Software during the first quarter valued at approximately $241,000. Finally, Patriot Financial Group Insurance Agency LLC bought a new position in Unity Software in the first quarter worth approximately $298,000. 73.46% of the stock is currently owned by institutional investors.

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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