Unity Software (NYSE:U) Price Target Raised to $47.00 at Oppenheimer

Key Points

• Oppenheimer raised Unity Software’s price target to $47 from $38 and maintained an “outperform” rating, implying roughly 10.7% upside from the reported $42.46 share price.
• Analyst sentiment has strengthened, with Deutsche Bank and Zacks Research upgrading the stock and Wells Fargo lifting its target to $48. Unity has a “Moderate Buy” consensus rating and an average price target of $44.22.
• Unity shares rose 4.1% to $42.46, while institutional investors own 73.46% of the company. Despite improving growth and margin expectations, the company continues to face negative net margins and elevated valuation and volatility risks.

Unity Software (NYSE:U - Get Free Report) had its price objective increased by equities research analysts at Oppenheimer from $38.00 to $47.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Oppenheimer's price objective would suggest a potential upside of 10.68% from the stock's current price.

Other research analysts also recently issued research reports about the company. Zacks Research upgraded Unity Software from a "hold" rating to a "strong-buy" rating in a report on Monday, July 13th. Deutsche Bank Aktiengesellschaft raised Unity Software from a "hold" rating to a "buy" rating and upped their price target for the company from $31.00 to $50.00 in a report on Friday. Wells Fargo & Company increased their price target on shares of Unity Software from $36.00 to $48.00 and gave the company an "overweight" rating in a research note on Friday. UBS Group reissued an "outperform" rating on shares of Unity Software in a report on Friday. Finally, Raymond James Financial initiated coverage on shares of Unity Software in a research report on Monday, June 29th. They set a "market perform" rating for the company. Two analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Unity Software presently has an average rating of "Moderate Buy" and a consensus target price of $44.22.

Unity Software Stock Up 4.1%

Unity Software stock traded up $1.65 during midday trading on Friday, reaching $42.46. The company's stock had a trading volume of 7,949,056 shares, compared to its average volume of 13,502,098. The company has a market cap of $18.54 billion, a P/E ratio of -27.00, a P/E/G ratio of 4.20 and a beta of 2.04. The company has a quick ratio of 1.95, a current ratio of 1.95 and a debt-to-equity ratio of 0.56. The business has a 50-day simple moving average of $29.89 and a 200-day simple moving average of $26.57. Unity Software has a fifty-two week low of $16.78 and a fifty-two week high of $52.15.

Insider Activity

In related news, COO Alexander Blum sold 19,009 shares of the firm's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $27.18, for a total transaction of $516,664.62. Following the transaction, the chief operating officer owned 730,069 shares in the company, valued at $19,843,275.42. This trade represents a 2.54% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Rebecca Berenice Boyden sold 952 shares of Unity Software stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $27.20, for a total value of $25,894.40. Following the transaction, the senior vice president directly owned 309,445 shares in the company, valued at approximately $8,416,904. This trade represents a 0.31% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 198,321 shares of company stock worth $5,390,783 over the last ninety days. 0.77% of the stock is owned by corporate insiders.

Institutional Trading of Unity Software

Institutional investors and hedge funds have recently bought and sold shares of the business. Newbridge Financial Services Group Inc. boosted its stake in Unity Software by 12.9% during the 3rd quarter. Newbridge Financial Services Group Inc. now owns 2,696 shares of the company's stock valued at $108,000 after purchasing an additional 308 shares in the last quarter. Larson Financial Group LLC raised its stake in shares of Unity Software by 88.1% in the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company's stock worth $29,000 after buying an additional 341 shares in the last quarter. Swiss Life Asset Management Ltd raised its stake in shares of Unity Software by 3.1% in the 4th quarter. Swiss Life Asset Management Ltd now owns 14,861 shares of the company's stock worth $656,000 after buying an additional 449 shares in the last quarter. Captrust Financial Advisors lifted its holdings in shares of Unity Software by 2.1% in the second quarter. Captrust Financial Advisors now owns 22,330 shares of the company's stock valued at $540,000 after buying an additional 462 shares during the period. Finally, Ritholtz Wealth Management boosted its stake in Unity Software by 8.9% during the fourth quarter. Ritholtz Wealth Management now owns 5,732 shares of the company's stock valued at $253,000 after buying an additional 468 shares in the last quarter. 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: Q2 earnings and revenue beat expectations: Unity reported revenue of approximately $546.5 million, up about 24% year over year, and non-GAAP earnings of $0.28 per share. Both figures exceeded Wall Street estimates, with the company also highlighting record free cash flow and a potential shift to GAAP profitability in the third quarter. Unity Reports Upbeat Q2 Results
• Positive Sentiment: Optimistic third-quarter outlook: Unity forecast strategic revenue of $540 million to $550 million, above the roughly $533.8 million consensus estimate, alongside a projected 33% adjusted EBITDA margin. Management attributed momentum partly to its Vector and Grow solutions. Unity Q3 Forecast
• Positive Sentiment: Broad analyst support: Wells Fargo raised its price target to $48 and assigned an overweight rating; Needham lifted its target to $54 with a buy rating; and Bank of America, Deutsche Bank, BTIG, Benchmark and HSBC all upgraded Unity or raised their targets. The revisions signal greater confidence in Unity’s execution, growth and margin outlook. Analysts Raise Unity Forecasts
• Neutral Sentiment: Options activity increased: Investors bought 41,488 Unity call options, about 30% above typical daily volume. This may reflect bullish positioning, though options activity alone does not establish a lasting change in fundamentals.
• Negative Sentiment: Profitability risks remain: Unity continues to report a negative net margin, and its valuation and volatility are elevated following the rally. The stock’s performance will likely depend on whether the company can sustain Vector-driven growth and deliver the projected improvement to GAAP profitability.

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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