Unity Software (NYSE:U) Now Covered by Analysts at The Goldman Sachs Group

Key Points

• Goldman Sachs Group has initiated coverage of Unity Software with a "neutral" rating and a price target of $38.00, suggesting a potential downside of 0.42% from its previous closing price.
• Unity Software reported a revenue of $440.94 million for the last quarter, slightly above estimates, but missed EPS expectations with a report of ($0.26).
• Insider trading showed significant sell-offs, with Director David Helgason selling 1.35 million shares for nearly $60 million, indicating a shift in insider confidence.

Equities research analysts at The Goldman Sachs Group began coverage on shares of Unity Software (NYSE:U - Get Free Report) in a note issued to investors on Wednesday. The brokerage set a "neutral" rating and a $38.00 price target on the stock. The Goldman Sachs Group's price objective suggests a potential downside of 0.42% from the company's previous close.

A number of other research analysts have also commented on the company. Hsbc Global Res lowered Unity Software from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 30th. Morgan Stanley upped their price target on shares of Unity Software from $25.00 to $40.00 and gave the stock an "overweight" rating in a report on Thursday, August 7th. Citigroup increased their price target on Unity Software from $44.00 to $50.00 and gave the stock a "buy" rating in a report on Wednesday, October 1st. Jefferies Financial Group increased their price objective on shares of Unity Software from $29.00 to $35.00 and gave the company a "buy" rating in a research note on Wednesday, July 16th. Finally, HSBC downgraded shares of Unity Software from a "buy" rating to a "hold" rating and raised their price target for the company from $37.50 to $40.80 in a report on Tuesday, September 30th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $32.99.

Unity Software Trading Up 4.3%

Unity Software stock traded up $1.58 during trading on Wednesday, hitting $38.16. The company's stock had a trading volume of 1,343,771 shares, compared to its average volume of 12,134,891. The company has a debt-to-equity ratio of 0.70, a quick ratio of 2.73 and a current ratio of 2.73. Unity Software has a 1-year low of $15.33 and a 1-year high of $46.94. The stock has a market capitalization of $16.12 billion, a price-to-earnings ratio of -35.95 and a beta of 2.32. The stock's fifty day moving average is $40.00 and its 200 day moving average is $29.84.

Unity Software (NYSE:U - Get Free Report) last announced its quarterly 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 the consensus estimate of $425.18 million. Unity Software had a negative return on equity of 13.59% and a negative net margin of 24.38%.The company's revenue for the quarter was down 1.9% on a year-over-year basis. During the same period last year, the business posted ($0.32) EPS. As a group, equities research analysts predict that Unity Software will post -1.25 EPS for the current year.

Insider Buying and Selling

In related news, Director David Helgason sold 1,350,000 shares of the firm's stock in a transaction dated Monday, September 8th. The shares were sold at an average price of $44.43, for a total value of $59,980,500.00. Following the transaction, the director owned 6,139,173 shares of the company's stock, valued at $272,763,456.39. This trade represents a 18.03% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Matthew S. Bromberg sold 120,000 shares of the firm's stock in a transaction dated Tuesday, August 26th. The shares were sold at an average price of $40.03, for a total transaction of $4,803,600.00. Following the transaction, the chief executive officer directly owned 1,222,812 shares in the company, valued at $48,949,164.36. This trade represents a 8.94% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 2,233,415 shares of company stock worth $94,949,128 over the last ninety days. 3.61% of the stock is owned by insiders.

Hedge Funds Weigh In On Unity Software

Large investors have recently made changes to their positions in the company. Cornerstone Planning Group LLC increased its holdings in Unity Software by 30,300.0% in the 1st quarter. Cornerstone Planning Group LLC now owns 1,216 shares of the company's stock worth $25,000 after acquiring an additional 1,212 shares in the last quarter. CX Institutional acquired a new position in Unity Software in the second quarter valued at about $25,000. Banque Transatlantique SA acquired a new stake in shares of Unity Software during the first quarter worth about $28,000. Atlantic Union Bankshares Corp acquired a new stake in shares of Unity Software during the second quarter worth about $28,000. Finally, Salem Investment Counselors Inc. purchased a new stake in shares of Unity Software during the third quarter worth approximately $40,000. 73.46% of the stock is currently owned by institutional investors and hedge funds.

Unity Software Company Profile

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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