Unity Software (NYSE:U) Price Target Raised to $55.00 at Piper Sandler

Key Points

• Piper Sandler raised Unity Software’s price target from $45 to $55 and maintained an “overweight” rating, implying roughly 30.7% upside from the prior close.
• Unity shares rose 3.1% to $42.07, near the upper end of their 52-week range. The stock has a “Moderate Buy” consensus rating, with an average analyst price target of $44.74.
• Institutional investors own approximately 73.5% of Unity’s shares, while recent insider sales were disclosed as transactions to cover tax withholding obligations related to vested equity awards.

Unity Software (NYSE:U - Get Free Report) had its price target upped by investment analysts at Piper Sandler from $45.00 to $55.00 in a research note issued on Friday,Benzinga reports. The firm presently has an "overweight" rating on the stock. Piper Sandler's price target points to a potential upside of 30.72% from the stock's previous close.

A number of other research firms have also recently commented on U. Citigroup dropped their price target on shares of Unity Software from $43.00 to $40.00 and set a "buy" rating for the company in a research note on Thursday, April 30th. Barclays raised their price objective on shares of Unity Software from $28.00 to $33.00 and gave the stock an "equal weight" rating in a research note on Friday, May 8th. Wedbush boosted their target price on Unity Software from $32.00 to $36.00 and gave the company an "outperform" rating in a research report on Wednesday, July 22nd. BTIG Research upped their target price on Unity Software from $43.00 to $51.00 and gave the company a "buy" rating in a research note on Thursday. Finally, Zacks Research raised Unity Software from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 13th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $44.74.

Unity Software Trading Up 3.1%

NYSE U traded up $1.26 on Friday, hitting $42.07. 11,807,245 shares of the stock were exchanged, compared to its average volume of 13,535,636. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.95 and a current ratio of 1.95. Unity Software has a 52-week low of $16.78 and a 52-week high of $52.15. The firm has a market capitalization of $18.37 billion, a P/E ratio of -26.80, a P/E/G ratio of 4.20 and a beta of 2.04. The stock has a fifty day moving average price of $29.89 and a two-hundred day moving average price of $26.57.

Insider Activity at Unity Software

In other news, CEO Matthew S. Bromberg sold 138,993 shares of the business's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $27.18, for a total value of $3,777,829.74. Following the completion of the transaction, the chief executive officer directly owned 1,557,514 shares of the company's stock, valued at approximately $42,333,230.52. The trade was a 8.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jarrod Yahes sold 24,021 shares of the company's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $27.18, for a total value of $652,890.78. Following the sale, the chief financial officer owned 704,360 shares of the company's stock, valued at $19,144,504.80. This trade represents a 3.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 198,321 shares of company stock valued at $5,390,783 over the last 90 days. Insiders own 0.77% of the company's stock.

Institutional Investors Weigh In On Unity Software

Several institutional investors have recently bought and sold shares of the company. Pallas Capital Advisors LLC acquired a new position in shares of Unity Software during the second quarter worth $571,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Unity Software during the second quarter worth about $6,788,000. Global Retirement Partners LLC purchased a new stake in shares of Unity Software during the second quarter worth about $56,000. Focus Partners Advisor Solutions LLC acquired a new position in shares of Unity Software during the second quarter valued at about $861,000. Finally, GSA Capital Partners LLP acquired a new position in shares of Unity Software during the second quarter valued at about $1,370,000. 73.46% of the stock is currently owned by institutional investors and hedge funds.

More Unity Software News

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

• Positive Sentiment: Q2 results exceeded expectations. Unity reported revenue of approximately $546.5 million, up 24% year over year, and adjusted earnings of $0.28 per share versus expectations near $0.24–$0.25. Management also highlighted record free cash flow and accelerated progress toward GAAP profitability. Unity Software Q2 Earnings and Revenues Top Estimates, Rise Y/Y
• Positive Sentiment: Forward guidance was stronger than anticipated. Unity forecast third-quarter strategic revenue of $540 million to $550 million, above the roughly $533.8 million consensus estimate, alongside a projected 33% adjusted EBITDA margin. The company said GAAP profitability could arrive as soon as the third quarter of 2026. Unity forecasts Q3 strategic revenue of $540M-$550M
• Positive Sentiment: Vector advertising momentum is driving optimism. Analysts and management pointed to accelerating growth in the Vector AI-powered advertising platform, Unity 7 integration, runtime data opportunities, margin expansion and a simplified product portfolio. Bank of America said the growth runway could remain sustainable through the end of 2027. U Q2 Earnings Call Highlights Vector AI Acceleration
• Positive Sentiment: Analyst sentiment improved sharply. Bank of America, Deutsche Bank, Benchmark and HSBC upgraded Unity to buy, while Needham, Wells Fargo, Oppenheimer, Citizens JMP and BTIG raised price targets, with targets reaching as high as $54. Analysts Boost Forecasts on Unity After Q2 Results
• Neutral Sentiment: Despite the improved outlook, Unity remained GAAP-unprofitable in the reported quarter, and its valuation and execution risks remain important considerations after the sharp rally.

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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