Unity Software (NYSE:U) Price Target Lowered to $40.00 at Citigroup

Key Points

• Citigroup trimmed its price target on Unity from $43 to $40 while keeping a "buy" rating, a target that implies roughly a 52% upside from the prior close; analysts' consensus remains a "Moderate Buy" with a $37.25 average target.
• U shares traded around $26.32 with a $11.49 billion market cap; the company posted an EPS beat for the quarter ($0.24 vs. $0.20) and $503.1M in revenue, but still shows negative profitability (net margin -21.77% and negative ROE) and a wide 52-week range of $16.78–$52.15.
• Company insiders (including the COO and CFO) sold shares in late February—insiders sold 41,684 shares worth about $773K last quarter—while institutional investors own roughly 73.5% of the stock.

Unity Software (NYSE:U - Get Free Report) had its price objective reduced by analysts at Citigroup from $43.00 to $40.00 in a research note issued to investors on Thursday,Benzinga reports. The firm presently has a "buy" rating on the stock. Citigroup's price target indicates a potential upside of 51.95% from the stock's previous close.

A number of other equities analysts have also issued reports on U. Weiss Ratings restated a "sell (d-)" rating on shares of Unity Software in a research note on Wednesday, January 21st. Wall Street Zen lowered Unity Software from a "buy" rating to a "hold" rating in a research note on Saturday, March 28th. Wells Fargo & Company reduced their target price on Unity Software from $38.00 to $29.00 and set an "overweight" rating for the company in a research note on Friday, March 27th. Freedom Capital upgraded Unity Software to a "strong-buy" rating in a research note on Thursday, January 15th. Finally, The Goldman Sachs Group reduced their target price on Unity Software from $47.00 to $27.00 and set a "neutral" rating for the company in a research note on Thursday, February 12th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Unity Software has an average rating of "Moderate Buy" and a consensus target price of $37.25.

Unity Software Stock Performance

U stock traded up $0.21 during midday trading on Thursday, reaching $26.32. The stock had a trading volume of 5,030,918 shares, compared to its average volume of 16,646,484. The stock has a market cap of $11.49 billion, a PE ratio of -27.37, 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. The firm has a fifty day simple moving average of $21.34 and a two-hundred day simple moving average of $32.85. Unity Software has a 52-week low of $16.78 and a 52-week high of $52.15.

Unity Software (NYSE:U - Get Free Report) last issued its earnings results on Wednesday, February 11th. The company reported $0.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.20 by $0.04. The company had revenue of $503.09 million during the quarter, compared to analyst estimates of $490.64 million. Unity Software had a negative return on equity of 4.76% and a negative net margin of 21.77%.The firm's quarterly revenue was up 10.1% on a year-over-year basis. During the same quarter last year, the business posted ($0.30) EPS. As a group, equities research analysts anticipate that Unity Software will post 0.13 EPS for the current year.

Insider Buying and Selling at Unity Software

In other Unity Software news, COO Alexander Blum sold 10,164 shares of Unity Software stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total transaction of $183,663.48. Following the completion of the transaction, the chief operating officer owned 550,966 shares in the company, valued at approximately $9,955,955.62. This trade represents a 1.81% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Jarrod Yahes sold 12,196 shares of Unity Software stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total value of $220,381.72. Following the transaction, the chief financial officer owned 533,933 shares of the company's stock, valued at $9,648,169.31. The trade was a 2.23% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 41,684 shares of company stock worth $773,350. Insiders own 0.77% of the company's stock.

Hedge Funds Weigh In On Unity Software

Institutional investors have recently modified their holdings of the stock. REAP Financial Group LLC purchased a new position in shares of Unity Software during the 4th quarter valued at about $28,000. Root Financial Partners LLC acquired a new stake in shares of Unity Software during the 3rd quarter valued at about $27,000. V Square Quantitative Management LLC acquired a new stake in shares of Unity Software during the 4th quarter valued at about $30,000. Larson Financial Group LLC grew its position in shares of Unity Software by 88.1% during the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company's stock valued at $29,000 after acquiring an additional 341 shares during the period. Finally, International Assets Investment Management LLC acquired a new stake in shares of Unity Software during the 4th quarter valued at about $36,000. Hedge funds and other institutional investors own 73.46% of the company's stock.

More Unity Software News

Here are the key news stories impacting Unity Software this week:

• Positive Sentiment: Wedbush reiterated an "outperform" rating and set a $30 price target (roughly mid‑teens upside from current levels), providing a clear analyst-backed upside catalyst that can attract buyers. Wedbush reaffirmation
• Positive Sentiment: Aggregate broker sentiment remains a Buy on Unity (average brokerage recommendation = Buy). That consensus can support flows into the stock when macro conditions or sentiment turn positive, though the coverage note flags that such metrics can be overly optimistic. Brokers Suggest Investing in Unity
• Neutral Sentiment: Recent rebound in the share price (strong monthly gains from a low) has prompted valuation checks — some commentary asks whether the ~month-long rally makes U fairly priced after steep YTD weakness. This is analytical context rather than a direct catalyst. Reassess after rebound
• Negative Sentiment: Zacks (and syndicated coverage) warns Unity lacks the key setup factors that typically precede an earnings beat, suggesting the upcoming report may disappoint relative to expectations — a potential downside catalyst for the stock. Earnings beat unlikely
• Negative Sentiment: Intraday/near-term price action shows the stock pulled back more than the broader market in the last session, signaling short-term selling pressure. Lower-than-average volume on recent trades can amplify moves in either direction. Recent dip report

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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