Unity Software (NYSE:U) Shares Gap Up - Should You Buy?

Unity Software Inc. (NYSE:U - Get Free Report)'s share price gapped up prior to trading on Friday . The stock had previously closed at $23.77, but opened at $25.00. Unity Software shares last traded at $24.92, with a volume of 5,539,819 shares changing hands.

Wall Street Analysts Forecast Growth

U has been the topic of a number of research analyst reports. Wall Street Zen cut shares of Unity Software from a "buy" rating to a "hold" rating in a research note on Sunday. Hsbc Global Res upgraded shares of Unity Software to a "strong-buy" rating in a research report on Friday, February 21st. Barclays decreased their price target on shares of Unity Software from $26.00 to $25.00 and set an "equal weight" rating on the stock in a research note on Thursday, May 8th. UBS Group cut their price objective on Unity Software from $30.00 to $22.00 and set a "neutral" rating for the company in a research note on Friday, April 11th. Finally, Citigroup upgraded Unity Software from a "neutral" rating to a "buy" rating and set a $30.00 target price on the stock in a research report on Tuesday, March 11th. One research analyst has rated the stock with a sell rating, ten have given a hold rating, six have issued a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $25.14.

Unity Software Stock Performance

The stock has a market cap of $10.85 billion, a PE ratio of -15.54 and a beta of 2.29. The company has a quick ratio of 2.41, a current ratio of 2.41 and a debt-to-equity ratio of 0.70. The stock has a 50-day moving average of $20.80 and a 200 day moving average of $22.27.

Unity Software (NYSE:U - Get Free Report) last issued its earnings results on Wednesday, May 7th. The company reported ($0.19) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.38) by $0.19. Unity Software had a negative return on equity of 13.40% and a negative net margin of 36.63%. The business had revenue of $435.00 million during the quarter, compared to the consensus estimate of $415.77 million. During the same period last year, the company earned $0.28 EPS. The company's revenue for the quarter was down 5.5% on a year-over-year basis. Equities analysts predict that Unity Software Inc. will post -1.25 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Tomer Bar-Zeev sold 250,000 shares of the company's stock in a transaction on Monday, June 2nd. The stock was sold at an average price of $26.39, for a total value of $6,597,500.00. Following the transaction, the director now owns 2,398,146 shares of the company's stock, valued at $63,287,072.94. This represents a 9.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Mark Barrysmith sold 1,445 shares of the firm's stock in a transaction dated Monday, March 17th. The stock was sold at an average price of $20.61, for a total value of $29,781.45. Following the sale, the chief accounting officer now directly owns 483,417 shares of the company's stock, valued at $9,963,224.37. The trade was a 0.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 1,023,368 shares of company stock worth $23,526,563. Insiders own 3.61% of the company's stock.

Institutional Investors Weigh In On Unity Software

Institutional investors and hedge funds have recently made changes to their positions in the stock. R Squared Ltd acquired a new position in shares of Unity Software in the 4th quarter worth approximately $30,000. Choreo LLC raised its position in Unity Software by 14.0% in the fourth quarter. Choreo LLC now owns 10,940 shares of the company's stock valued at $246,000 after purchasing an additional 1,344 shares during the period. Newbridge Financial Services Group Inc. lifted its stake in Unity Software by 81.8% during the fourth quarter. Newbridge Financial Services Group Inc. now owns 4,000 shares of the company's stock worth $90,000 after purchasing an additional 1,800 shares in the last quarter. V2 Financial group LLC purchased a new position in shares of Unity Software during the fourth quarter worth $225,000. Finally, Summit Trail Advisors LLC acquired a new stake in shares of Unity Software in the fourth quarter valued at $337,000. 73.46% of the stock is 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.