Unity Software (NYSE:U) Hits New 12-Month High - Time to Buy?

Key Points

• Unity Software's stock reached a new 52-week high at $38.99, with a current trading price of $37.82 and a trading volume of over 2.8 million shares.
• Analysts have upgraded the stock's rating, with Wall Street Zen moving it from a "hold" to a "buy," and Citigroup raising its price target from $29 to $44.
• Despite reporting a slightly larger loss than expectations for the last quarter, Unity Software's revenue of $440.94 million exceeded forecasts, although it marked a year-over-year decline of 1.9%.

Unity Software Inc. (NYSE:U - Get Free Report)'s share price hit a new 52-week high on Friday . The company traded as high as $38.99 and last traded at $37.82, with a volume of 2883528 shares trading hands. The stock had previously closed at $38.42.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on U shares. Wall Street Zen raised shares of Unity Software from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Citigroup raised their price target on shares of Unity Software from $29.00 to $44.00 and gave the company a "buy" rating in a research note on Wednesday, July 23rd. JMP Securities raised their price target on shares of Unity Software from $30.00 to $35.00 and gave the company a "market outperform" rating in a research note on Thursday, August 7th. Bank of America started coverage on shares of Unity Software in a research note on Thursday, June 26th. They set an "underperform" rating and a $15.00 price target for the company. Finally, Barclays raised their price target on shares of Unity Software from $25.00 to $30.00 and gave the company an "equal weight" rating in a research note on Thursday, August 7th. Two research analysts have rated the stock with a sell rating, six have assigned a hold rating, nine have given a buy rating and two have issued a strong buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $31.20.

Unity Software Price Performance

The firm has a market capitalization of $16.13 billion, a PE ratio of -36.03 and a beta of 2.32. The firm's fifty day simple moving average is $29.37 and its 200-day simple moving average is $24.40. The company has a quick ratio of 2.73, a current ratio of 2.73 and a debt-to-equity ratio of 0.70.

Unity Software (NYSE:U - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported ($0.26) EPS for the quarter, missing analysts' consensus estimates of ($0.25) by ($0.01). Unity Software had a negative net margin of 24.38% and a negative return on equity of 13.59%. The business had revenue of $440.94 million for the quarter, compared to analysts' expectations of $425.18 million. During the same period in the prior year, the company posted ($0.32) earnings per share. The firm's quarterly revenue was down 1.9% on a year-over-year basis. On average, research analysts forecast that Unity Software Inc. will post -1.25 earnings per share for the current fiscal year.

Insider Buying and Selling at Unity Software

In other news, Director Tomer Bar-Zeev sold 250,000 shares of Unity Software stock in a transaction that occurred on Monday, June 2nd. The shares were sold at an average price of $26.39, for a total value of $6,597,500.00. Following the transaction, the director owned 2,398,146 shares of the company's stock, valued at $63,287,072.94. The trade was a 9.44% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director David Helgason sold 261,473 shares of the business's stock in a transaction on Friday, June 6th. The shares were sold at an average price of $25.70, for a total transaction of $6,719,856.10. Following the completion of the transaction, the director owned 7,489,173 shares of the company's stock, valued at approximately $192,471,746.10. This represents a 3.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,211,310 shares of company stock valued at $31,254,674 over the last ninety days. Corporate insiders own 3.61% of the company's stock.

Hedge Funds Weigh In On Unity Software

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. CX Institutional acquired a new stake in shares of Unity Software in the second quarter valued at $25,000. Atlantic Union Bankshares Corp acquired a new stake in shares of Unity Software in the second quarter valued at $28,000. Cornerstone Planning Group LLC grew its stake in shares of Unity Software by 30,300.0% in the first quarter. Cornerstone Planning Group LLC now owns 1,216 shares of the company's stock valued at $25,000 after buying an additional 1,212 shares in the last quarter. Anderson Financial Strategies LLC acquired a new stake in shares of Unity Software in the fourth quarter valued at $28,000. Finally, Banque Transatlantique SA acquired a new stake in shares of Unity Software in the first quarter valued at $28,000. Institutional investors and hedge funds own 73.46% of the company's stock.

About Unity Software

Unity Software Inc operates a real-time 3D development platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company offers its solutions directly through its online store and field sales operations in North America, Denmark, Finland, the United Kingdom, Germany, Japan, China, Singapore, and South Korea, as well as indirectly through independent distributors and resellers worldwide.

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