Unity Software (NYSE:U) Raised to Buy at Bank of America

Key Points

• Bank of America upgraded Unity Software to “buy” from “neutral” and raised its price target to $50 from $30, implying approximately 22% upside from the cited share price.
• Analyst sentiment is broadly positive, with Unity carrying a consensus “Moderate Buy” rating and an average price target of $41.16; Deutsche Bank also upgraded the stock to “buy” with a $50 target.
• Institutional investors own approximately 73.46% of Unity’s shares, while insiders have sold about 198,321 shares worth $5.39 million over the past 90 days, primarily to cover tax obligations from vested equity awards.

Unity Software (NYSE:U - Get Free Report) was upgraded by research analysts at Bank of America from a "neutral" rating to a "buy" rating in a research report issued on Friday,Benzinga reports. The brokerage presently has a $50.00 price target on the stock, up from their prior price target of $30.00. Bank of America's price target suggests a potential upside of 22.12% from the company's current price.

Several other analysts have also issued reports on U. Needham & Company LLC upped their target price on shares of Unity Software from $35.00 to $40.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Citigroup decreased their price target on Unity Software from $43.00 to $40.00 and set a "buy" rating for the company in a research report on Thursday, April 30th. Wedbush upped their price objective on Unity Software from $32.00 to $36.00 and gave the company an "outperform" rating in a research note on Wednesday, July 22nd. Deutsche Bank Aktiengesellschaft upgraded shares of Unity Software from a "hold" rating to a "buy" rating and increased their price target for the company from $31.00 to $50.00 in a research report on Friday. Finally, UBS Group reissued an "outperform" rating on shares of Unity Software in a research report on Friday. Two research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Unity Software currently has a consensus rating of "Moderate Buy" and a consensus target price of $41.16.

Unity Software Stock Performance

Shares of Unity Software stock opened at $40.94 on Friday. Unity Software has a 52 week low of $16.78 and a 52 week high of $52.15. 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 moving average price of $29.89 and a 200-day moving average price of $26.57. The company has a market cap of $17.87 billion, a PE ratio of -26.08, a price-to-earnings-growth ratio of 4.20 and a beta of 2.04.

Insider Activity

In related news, SVP Rebecca Berenice Boyden sold 952 shares of the business's 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 completion of the sale, the senior vice president owned 309,445 shares in the company, valued at $8,416,904. The trade was a 0.31% 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, 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 transaction of $3,777,829.74. Following the completion of the sale, the chief executive officer directly owned 1,557,514 shares of the company's stock, valued at $42,333,230.52. This represents a 8.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 198,321 shares of company stock valued at $5,390,783. 0.77% of the stock is owned by insiders.

Hedge Funds Weigh In On Unity Software

Several institutional investors and hedge funds have recently added to or reduced their stakes in U. Vanguard Group Inc. grew its stake in shares of Unity Software by 2.9% in the 4th quarter. Vanguard Group Inc. now owns 35,553,296 shares of the company's stock worth $1,570,389,000 after buying an additional 996,685 shares during the last quarter. Wellington Management Group LLP raised its holdings in Unity Software by 58.7% in the third quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company's stock worth $729,284,000 after buying an additional 6,734,285 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of Unity Software by 5.9% in the fourth quarter. Geode Capital Management LLC now owns 5,852,047 shares of the company's stock worth $258,547,000 after buying an additional 328,595 shares in the last quarter. Norges Bank purchased a new stake in shares of Unity Software during the fourth quarter valued at approximately $230,285,000. Finally, Ameriprise Financial Inc. increased its position in shares of Unity Software by 37.8% during the second quarter. Ameriprise Financial Inc. now owns 4,628,328 shares of the company's stock valued at $112,006,000 after acquiring an additional 1,270,798 shares in the last quarter. Hedge funds and other institutional investors own 73.46% of the company's stock.

Unity Software News Roundup

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 about 24% year over year and ahead of the roughly $514 million consensus. Adjusted earnings were $0.28 per share, also above estimates near $0.24-$0.25 and a loss reported in the year-ago period. Unity Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Profitability and cash flow improved sharply. Management highlighted record free cash flow and indicated that GAAP profitability could arrive in the third quarter of 2026, earlier than previously expected. The results were described by the CEO as potentially Unity’s best quarter since becoming a public company. Unity Q2 2026 Earnings Call Highlights
• Positive Sentiment: Guidance topped analyst expectations. Unity forecast third-quarter revenue of $540 million to $550 million, above the approximately $533.8 million consensus, along with a 33% adjusted EBITDA margin. Management cited momentum in its Vector product and continued strength in Grow Solutions. Unity Forecasts Q3 Strategic Revenue and Margin
• Positive Sentiment: Analyst sentiment strengthened. BTIG Research raised its price target from $43 to $51 and maintained a Buy rating, suggesting additional potential upside based on improving growth and profitability. BTIG Research Price Target Update
• Neutral Sentiment: Options activity turned more bullish. Investors purchased 41,488 Unity call options, about 30% above typical daily call volume. This indicates increased trading interest but does not guarantee continued gains.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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