Unity Software (NYSE:U) Price Target Raised to $32.00

Key Points

• Wedbush raised its price target on Unity to $32.00 (an implied ~16% upside) and the MarketBeat consensus remains a Moderate Buy with an average target of $38.49 amid mixed analyst views.
• Unity reported a Q1 revenue beat (about $503M) with management highlighting strong ad‑tech/AI momentum and continued ad revenue growth, supporting upbeat near‑term outlooks from several brokers.
• Near‑term headwinds include a $279M impairment tied to the ironSource/Supersonic wind‑down that will weigh on GAAP profits, while insiders have trimmed positions as institutions have added shares.

Unity Software (NYSE:U - Get Free Report) had its price target upped by research analysts at Wedbush from $30.00 to $32.00 in a research report issued on Friday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Wedbush's price target suggests a potential upside of 16.14% from the company's current price.

Several other equities research analysts have also commented on U. Barclays decreased their price target on Unity Software from $35.00 to $28.00 and set an "equal weight" rating on the stock in a research note on Thursday, February 12th. Needham & Company LLC boosted their price target on Unity Software from $35.00 to $40.00 and gave the stock a "buy" rating in a research note on Friday. Freedom Capital raised Unity Software to a "strong-buy" rating in a research note on Thursday, January 15th. Morgan Stanley boosted their price target on Unity Software from $30.00 to $32.00 and gave the stock an "overweight" rating in a research note on Friday, March 27th. Finally, UBS Group boosted their price target on Unity Software from $26.00 to $28.00 and gave the stock a "neutral" rating in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $38.49.

Unity Software Stock Performance

NYSE U traded up $0.82 on Friday, hitting $27.55. 2,614,566 shares of the company's stock were exchanged, compared to its average volume of 16,417,375. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.84 and a quick ratio of 1.84. The firm's 50-day moving average price is $22.06 and its two-hundred day moving average price is $32.57. Unity Software has a fifty-two week low of $16.78 and a fifty-two week high of $52.15. The firm has a market cap of $12.02 billion, a price-to-earnings ratio of -28.48, a P/E/G ratio of 10.05 and a beta of 2.04.

Unity Software (NYSE:U - Get Free Report) last announced its quarterly earnings results on Wednesday, February 11th. The company reported $0.24 EPS for the quarter, topping the consensus estimate of $0.20 by $0.04. The business had revenue of $503.09 million for 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 company's quarterly revenue was up 10.1% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.30) EPS. On average, research analysts expect that Unity Software will post 0.13 EPS for the current year.

Insider Activity at Unity Software

In other news, COO Alexander Blum sold 2,541 shares of the business's stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $18.76, for a total value of $47,669.16. Following the completion of the transaction, the chief operating officer owned 548,425 shares of the company's stock, valued at $10,288,453. The trade was a 0.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Jarrod Yahes sold 6,205 shares of the business's stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $21.03, for a total transaction of $130,491.15. Following the completion of the transaction, the chief financial officer directly owned 728,381 shares of the company's stock, valued at approximately $15,317,852.43. This represents a 0.84% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 41,684 shares of company stock valued at $773,350. 0.77% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Dimensional Fund Advisors LP boosted its holdings in shares of Unity Software by 52.8% during the first quarter. Dimensional Fund Advisors LP now owns 4,245,014 shares of the company's stock worth $93,089,000 after purchasing an additional 1,465,962 shares during the last quarter. Parallel Advisors LLC boosted its holdings in shares of Unity Software by 21.5% during the first quarter. Parallel Advisors LLC now owns 60,183 shares of the company's stock worth $1,320,000 after purchasing an additional 10,662 shares during the last quarter. KBC Group NV boosted its holdings in shares of Unity Software by 1.0% during the first quarter. KBC Group NV now owns 52,505 shares of the company's stock worth $1,152,000 after purchasing an additional 545 shares during the last quarter. Swiss National Bank boosted its holdings in shares of Unity Software by 0.4% during the first quarter. Swiss National Bank now owns 627,400 shares of the company's stock worth $13,765,000 after purchasing an additional 2,600 shares during the last quarter. Finally, California Public Employees Retirement System boosted its holdings in shares of Unity Software by 1.2% during the first quarter. California Public Employees Retirement System now owns 558,113 shares of the company's stock worth $12,245,000 after purchasing an additional 6,474 shares during the last quarter. Hedge funds and other institutional investors own 73.46% of the company's stock.

Key Headlines Impacting Unity Software

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

• Positive Sentiment: AI-driven monetization lift — Unity’s Vector product and AI features drove outsized Grow revenue gains (reported ~+49% YoY in Grow) and management highlighted new agentic Unity AI capabilities that support cross‑sell and stronger ad-tech revenue prospects. Unity: Blockbuster Q1 2026 Results With Outsized Ad/Game Monetization Trends
• Positive Sentiment: Analyst upgrades — Several brokers raised targets and reiterated buys (Needham to $40; BTIG to $43), signaling upside expectations tied to ad-tech/AI momentum. Needham raises PT to $40 BTIG raises PT to $43
• Positive Sentiment: Beat on revenue and upbeat guidance commentary — Q1 revenue (~$508M, ~+17% YoY) topped estimates and management guided for continued strong ad revenue growth into Q2 (management flagged ~50% Y/Y ad rev growth). Unity Reports First Quarter 2026 Financial Results Q1 2026 Earnings Call Transcript
• Positive Sentiment: Options flow — unusually high call buying (≈57,980 calls) signals some investors positioning for upside in the short term.
• Neutral Sentiment: Tiny EPS miss — reported EPS of $0.23 missed consensus by $0.01; revenue growth remains the stronger driver. Zacks: Q1 Earnings Lag Estimates
• Neutral Sentiment: Smaller price-target move — UBS nudged its target to $28 (modest), reflecting mixed near-term readthroughs while other firms are more bullish. UBS raises PT to $28
• Negative Sentiment: Large impairment charge — Unity took a $279M impairment tied to winding down the ironSource ad network and selling Supersonic, which will weigh on GAAP profits and is the main near-term drag on the stock. Unity posts Q1 revenue beat, flags impairment charges on ironSource wind-down

About Unity Software

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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