Unity Software (NYSE:U) Hits New 52-Week High - Should You Buy?

Key Points

• Unity Software shares reached a new 52-week high of $39.87, with a recent trading volume of over 3.2 million shares.
• Analysts have mixed ratings on Unity Software, with most giving it a "Moderate Buy" consensus and a target price averaging $31.20.
• Recent insider trading showed significant sales, with 1.2 million shares sold by corporate insiders in the last quarter, indicating possible caution among executives.

Shares of Unity Software Inc. (NYSE:U - Get Free Report) hit a new 52-week high on Monday . The stock traded as high as $39.87 and last traded at $39.68, with a volume of 3241844 shares traded. The stock had previously closed at $39.16.

Wall Street Analysts Forecast Growth

U has been the subject of several research analyst reports. Stifel Nicolaus reduced their target price on Unity Software from $35.00 to $28.00 and set a "buy" rating for the company in a research note on Thursday, May 8th. Needham & Company LLC upped their target price on Unity Software from $30.00 to $40.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Jefferies Financial Group boosted their price target on Unity Software from $29.00 to $35.00 and gave the stock a "buy" rating in a research report on Wednesday, July 16th. Citigroup boosted their price target on Unity Software from $29.00 to $44.00 and gave the stock a "buy" rating in a research report on Wednesday, July 23rd. Finally, BTIG Research cut Unity Software from a "neutral" rating to a "sell" rating and set a $25.00 price target for the company. in a research report on Wednesday, July 23rd. Two investment analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, Unity Software presently has a consensus rating of "Moderate Buy" and an average target price of $31.20.

Unity Software Trading Up 1.7%

The company has a current ratio of 2.73, a quick ratio of 2.73 and a debt-to-equity ratio of 0.70. The company has a fifty day simple moving average of $30.92 and a 200-day simple moving average of $25.08. The company has a market capitalization of $16.83 billion, a PE ratio of -37.49 and a beta of 2.32.

Unity Software (NYSE:U - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.25) by ($0.01). The company had revenue of $440.94 million during the quarter, compared to analysts' expectations of $425.18 million. Unity Software had a negative net margin of 24.38% and a negative return on equity of 13.59%. The firm's quarterly revenue was down 1.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.32) earnings per share. Analysts predict that Unity Software Inc. will post -1.25 EPS for the current year.

Insider Buying and Selling

In other news, Director Shlomo Dovrat sold 50,000 shares of the stock in a transaction on Wednesday, July 9th. The stock was sold at an average price of $30.01, for a total transaction of $1,500,500.00. Following the completion of the transaction, the director directly owned 189,089 shares in the company, valued at approximately $5,674,560.89. This represents a 20.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Alexander Blum sold 2,582 shares of the stock in a transaction on Monday, August 11th. The stock was sold at an average price of $32.99, for a total value of $85,180.18. Following the transaction, the chief operating officer owned 716,926 shares of the company's stock, valued at approximately $23,651,388.74. This represents a 0.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,214,694 shares of company stock worth $31,384,519 over the last quarter. Corporate insiders own 3.61% of the company's stock.

Institutional Trading of Unity Software

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in Unity Software by 5.9% in the first quarter. Vanguard Group Inc. now owns 32,964,521 shares of the company's stock valued at $645,775,000 after purchasing an additional 1,841,486 shares during the period. Slate Path Capital LP boosted its holdings in Unity Software by 25.4% during the 2nd quarter. Slate Path Capital LP now owns 20,016,952 shares of the company's stock valued at $484,410,000 after acquiring an additional 4,048,484 shares during the period. Atreides Management LP boosted its holdings in Unity Software by 146.7% during the 1st quarter. Atreides Management LP now owns 9,430,955 shares of the company's stock valued at $184,752,000 after acquiring an additional 5,607,572 shares during the period. Norges Bank purchased a new position in Unity Software during the 2nd quarter valued at about $151,221,000. Finally, Geode Capital Management LLC boosted its holdings in Unity Software by 0.7% during the 2nd quarter. Geode Capital Management LLC now owns 5,064,703 shares of the company's stock valued at $122,587,000 after acquiring an additional 36,105 shares during the period. Hedge funds and other institutional investors 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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