Unity Software (NYSE:U) Reaches New 12-Month High - Still a Buy?

Key Points

• Unity Software's stock recently reached a new 52-week high of $46.00, closing at $43.08 with a trading volume of over 10 million shares.
• Analysts have raised their price targets for Unity, with Morgan Stanley setting a new target of $40.00 and a consensus rating of "Moderate Buy."
• Despite a revenue increase to $440.94 million, Unity reported a quarterly loss of ($0.26) earnings per share, missing expectations by ($0.01).

Unity Software Inc. (NYSE:U - Get Free Report)'s stock price hit a new 52-week high on Thursday . The company traded as high as $46.00 and last traded at $43.08, with a volume of 10561776 shares trading hands. The stock had previously closed at $45.50.

Analysts Set New Price Targets

A number of brokerages recently weighed in on U. Morgan Stanley increased their price target on shares of Unity Software from $25.00 to $40.00 and gave the company an "overweight" rating in a research report on Thursday, August 7th. JMP Securities increased their target price on Unity Software from $30.00 to $35.00 and gave the stock a "market outperform" rating in a research note on Thursday, August 7th. Wall Street Zen raised Unity Software from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Barclays increased their target price on Unity Software from $25.00 to $30.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 7th. Finally, Needham & Company LLC increased their target price on Unity Software from $30.00 to $40.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Two investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $31.20.

Unity Software Stock Down 5.3%

The company has a market capitalization of $18.20 billion, a P/E ratio of -40.65 and a beta of 2.33. The firm's 50 day moving average price is $35.42 and its two-hundred day moving average price is $26.75. The company has a current ratio of 2.73, a quick ratio of 2.73 and a debt-to-equity ratio of 0.70.

Unity Software (NYSE:U - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of ($0.25) by ($0.01). The business had revenue of $440.94 million for the quarter, compared to the consensus estimate of $425.18 million. Unity Software had a negative return on equity of 13.59% and a negative net margin of 24.38%.Unity Software's revenue was down 1.9% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.32) earnings per share. Equities research analysts forecast that Unity Software Inc. will post -1.25 EPS for the current year.

Insider Activity at Unity Software

In other news, Director David Helgason sold 1,350,000 shares of the firm's stock in a transaction that occurred on Monday, September 8th. The shares were sold at an average price of $44.43, for a total transaction of $59,980,500.00. Following the completion of the transaction, the director directly owned 6,139,173 shares of the company's stock, valued at $272,763,456.39. This trade represents a 18.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Alexander Blum sold 63,813 shares of the firm's stock in a transaction that occurred on Wednesday, August 27th. The stock was sold at an average price of $39.41, for a total transaction of $2,514,870.33. Following the transaction, the chief operating officer directly owned 603,811 shares of the company's stock, valued at $23,796,191.51. This represents a 9.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 1,981,485 shares of company stock worth $82,447,777. 3.61% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Unity Software

Several hedge funds have recently made changes to their positions in U. Janney Montgomery Scott LLC grew its stake in shares of Unity Software by 116.2% in the first quarter. Janney Montgomery Scott LLC now owns 29,085 shares of the company's stock valued at $570,000 after buying an additional 15,633 shares in the last quarter. Oppenheimer & Co. Inc. bought a new position in shares of Unity Software in the first quarter valued at $433,000. GAMMA Investing LLC grew its stake in shares of Unity Software by 72.5% in the first quarter. GAMMA Investing LLC now owns 2,822 shares of the company's stock valued at $55,000 after buying an additional 1,186 shares in the last quarter. Wealth Enhancement Advisory Services LLC bought a new position in shares of Unity Software in the first quarter valued at $2,215,000. Finally, Amalgamated Bank grew its stake in shares of Unity Software by 3.0% in the first quarter. Amalgamated Bank now owns 18,132 shares of the company's stock valued at $355,000 after buying an additional 525 shares in the last quarter. 73.46% of the stock is owned by institutional investors.

About Unity Software

Unity Software Inc operates a real-time 3D development platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company offers its solutions directly through its online store and field sales operations in North America, Denmark, Finland, the United Kingdom, Germany, Japan, China, Singapore, and South Korea, as well as indirectly through independent distributors and resellers worldwide.

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