Unity Software (NYSE:U) Hits New 52-Week High - What's Next?

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).

Shares of Unity Software Inc. (NYSE:U - Get Free Report) 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. The stock had previously closed at $45.50.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on U shares. Bank of America initiated coverage on Unity Software in a report on Thursday, June 26th. They issued an "underperform" rating and a $15.00 target price for the company. Citigroup boosted their price objective on Unity Software from $29.00 to $44.00 and gave the company a "buy" rating in a report on Wednesday, July 23rd. Needham & Company LLC boosted their price objective on Unity Software from $30.00 to $40.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Morgan Stanley boosted their price objective on Unity Software from $25.00 to $40.00 and gave the company an "overweight" rating in a report on Thursday, August 7th. Finally, Zacks Research downgraded Unity Software from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 13th. Two equities research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $31.20.

Unity Software Stock Performance

The company has a 50-day simple moving average of $36.48 and a two-hundred day simple moving average of $27.13. The company has a quick ratio of 2.73, a current ratio of 2.73 and a debt-to-equity ratio of 0.70. The firm has a market cap of $19.05 billion, a PE ratio of -42.54 and a beta of 2.33.

Unity Software (NYSE:U - Get Free Report) last posted its quarterly earnings data 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). Unity Software had a negative return on equity of 13.59% and a negative net margin of 24.38%.The business had revenue of $440.94 million during the quarter, compared to analysts' expectations of $425.18 million. During the same period in the prior year, the firm posted ($0.32) EPS. The firm's revenue for the quarter was down 1.9% on a year-over-year basis. As a group, equities research analysts forecast that Unity Software Inc. will post -1.25 earnings per share for the current year.

Insider Activity

In other news, Director David Helgason sold 1,350,000 shares of the company's stock in a transaction on Monday, September 8th. The stock was sold at an average price of $44.43, for a total transaction of $59,980,500.00. Following the transaction, the director owned 6,139,173 shares of the company's stock, valued at $272,763,456.39. This represents a 18.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Shlomo Dovrat sold 50,000 shares of the company's stock in a transaction on Wednesday, July 9th. The shares were sold at an average price of $30.01, for a total value of $1,500,500.00. Following the transaction, the director directly owned 189,089 shares in the company, valued at $5,674,560.89. This represents a 20.91% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,981,485 shares of company stock worth $82,447,777. 3.61% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Cetera Investment Advisers raised its stake in shares of Unity Software by 16.4% during the 4th quarter. Cetera Investment Advisers now owns 58,084 shares of the company's stock valued at $1,305,000 after purchasing an additional 8,182 shares during the period. Deutsche Bank AG raised its stake in shares of Unity Software by 0.8% during the 4th quarter. Deutsche Bank AG now owns 231,673 shares of the company's stock valued at $5,206,000 after purchasing an additional 1,902 shares during the period. Janus Henderson Group PLC raised its stake in shares of Unity Software by 7.3% during the 4th quarter. Janus Henderson Group PLC now owns 127,649 shares of the company's stock valued at $2,870,000 after purchasing an additional 8,649 shares during the period. Nuveen Asset Management LLC raised its stake in shares of Unity Software by 24.0% during the 4th quarter. Nuveen Asset Management LLC now owns 1,026,810 shares of the company's stock valued at $23,072,000 after purchasing an additional 198,515 shares during the period. Finally, Nissay Asset Management Corp Japan ADV raised its stake in shares of Unity Software by 11.0% during the 4th quarter. Nissay Asset Management Corp Japan ADV now owns 33,804 shares of the company's stock valued at $772,000 after purchasing an additional 3,340 shares during the period. Hedge funds and other institutional investors own 73.46% of the company's stock.

Unity Software Company Profile

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.