Unity Software (NYSE:U) Shares Gap Down - Here's Why

Unity Software Inc. (NYSE:U - Get Free Report)'s share price gapped down prior to trading on Thursday . The stock had previously closed at $24.15, but opened at $23.18. Unity Software shares last traded at $23.34, with a volume of 2,214,052 shares changing hands.

Analyst Ratings Changes

Several brokerages have recently weighed in on U. Bank of America initiated coverage on shares of Unity Software in a research note on Thursday. They set an "underperform" rating and a $15.00 target price for the company. Wells Fargo & Company decreased their price objective on Unity Software from $22.00 to $19.00 and set an "equal weight" rating for the company in a research report on Tuesday, April 8th. Jefferies Financial Group raised Unity Software from a "hold" rating to a "buy" rating and boosted their target price for the company from $22.00 to $29.00 in a report on Friday, May 30th. Citigroup raised Unity Software from a "neutral" rating to a "buy" rating and set a $30.00 price target for the company in a report on Tuesday, March 11th. Finally, Morgan Stanley lowered their price objective on shares of Unity Software from $32.00 to $25.00 and set an "overweight" rating on the stock in a research report on Thursday, April 17th. Two equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating, seven have issued a buy rating and two have assigned a strong buy rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $24.47.

Unity Software Trading Down 4.6%

The company has a quick ratio of 2.74, a current ratio of 2.74 and a debt-to-equity ratio of 0.70. The business's fifty day moving average is $22.64 and its 200 day moving average is $22.38. The stock has a market cap of $9.57 billion, a PE ratio of -20.56 and a beta of 2.34.

Unity Software (NYSE:U - Get Free Report) last posted its quarterly earnings results on Wednesday, May 7th. The company reported ($0.19) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.38) by $0.19. The company had revenue of $435.00 million during the quarter, compared to the consensus estimate of $415.77 million. Unity Software had a negative net margin of 25.21% and a negative return on equity of 14.12%. The company's revenue for the quarter was down 5.5% on a year-over-year basis. During the same period last year, the firm earned $0.28 EPS. As a group, analysts predict that Unity Software Inc. will post -1.25 earnings per share for the current year.

Insider Buying and Selling at Unity Software

In other news, CAO Mark Barrysmith sold 1,414 shares of the company's stock in a transaction on Friday, May 16th. The stock was sold at an average price of $21.42, for a total value of $30,287.88. Following the sale, the chief accounting officer now directly owns 480,408 shares in the company, valued at $10,290,339.36. This represents a 0.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Tomer Bar-Zeev sold 9,551 shares of Unity Software stock in a transaction dated Monday, June 9th. The stock was sold at an average price of $25.51, for a total value of $243,646.01. Following the sale, the director now owns 748,099 shares of the company's stock, valued at approximately $19,084,005.49. This represents a 1.26% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 1,294,611 shares of company stock valued at $30,506,382. Insiders own 3.61% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Cornerstone Planning Group LLC grew its position in shares of Unity Software by 30,300.0% in the first quarter. Cornerstone Planning Group LLC now owns 1,216 shares of the company's stock valued at $25,000 after purchasing an additional 1,212 shares during the period. Anderson Financial Strategies LLC acquired a new stake in Unity Software in the 4th quarter worth about $28,000. Principal Securities Inc. grew its holdings in Unity Software by 50.5% in the 4th quarter. Principal Securities Inc. now owns 1,422 shares of the company's stock valued at $32,000 after buying an additional 477 shares during the period. Banque Transatlantique SA acquired a new position in shares of Unity Software during the 1st quarter valued at about $28,000. Finally, Point72 Asia Singapore Pte. Ltd. purchased a new position in shares of Unity Software during the 4th quarter worth about $36,000. 73.46% of the stock is currently owned by hedge funds and other institutional investors.

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.

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