Unity Software (NYSE:U) Shares Gap Up - Time to Buy?

Key Points

• Unity Software shares experienced a significant gap up, opening at $37.95 after closing at $33.94, but later traded down to $32.91 with high trading volume.
• Analysts have mixed ratings on Unity Software, with price targets ranging from $25.00 to $44.00, and an average consensus rating of "Hold."
• Despite a rise in share price, the company reported a negative earnings per share of ($0.19), beating estimates but reflecting a year-over-year revenue decline of 5.5%.

Unity Software Inc. (NYSE:U - Get Free Report) shares gapped up prior to trading on Wednesday . The stock had previously closed at $33.94, but opened at $37.95. Unity Software shares last traded at $32.91, with a volume of 12,949,596 shares trading hands.

Wall Street Analyst Weigh In

Several brokerages have weighed in on U. Citigroup upped their target price on shares of Unity Software from $29.00 to $44.00 and gave the stock a "buy" rating in a research report on Wednesday, July 23rd. Barclays lowered their price target on Unity Software from $26.00 to $25.00 and set an "equal weight" rating on the stock in a report on Thursday, May 8th. BTIG Research cut Unity Software from a "neutral" rating to a "sell" rating and set a $25.00 price objective for the company. in a report on Wednesday, July 23rd. UBS Group upped their target price on Unity Software from $22.00 to $33.00 and gave the company a "neutral" rating in a report on Thursday, July 17th. Finally, Needham & Company LLC dropped their price target on Unity Software from $33.00 to $30.00 and set a "buy" rating for the company in a research report on Thursday, May 8th. Two analysts have rated the stock with a sell rating, ten have given a hold rating, seven have given a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat, Unity Software currently has an average rating of "Hold" and a consensus target price of $27.22.

Unity Software Stock Down 7.5%

The stock has a market capitalization of $13.06 billion, a price-to-earnings ratio of -28.17 and a beta of 2.32. The company has a debt-to-equity ratio of 0.70, a current ratio of 2.74 and a quick ratio of 2.74. The firm's fifty day moving average is $28.01 and its 200-day moving average is $23.79.

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

Insider Buying and Selling

In other Unity Software news, CAO Mark Barrysmith sold 1,011 shares of the company's stock in a transaction dated Wednesday, July 16th. The shares were sold at an average price of $32.30, for a total value of $32,655.30. Following the completion of the transaction, the chief accounting officer owned 464,372 shares in the company, valued at approximately $14,999,215.60. This represents a 0.22% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Tomer Bar-Zeev sold 50,000 shares of Unity Software stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $33.18, for a total value of $1,659,000.00. Following the sale, the director directly owned 2,148,146 shares in the company, valued at approximately $71,275,484.28. This trade represents a 2.27% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 1,210,142 shares of company stock valued at $31,199,782. 3.61% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Unity Software

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in Unity Software by 5.9% during the first quarter. Vanguard Group Inc. now owns 32,964,521 shares of the company's stock valued at $645,775,000 after purchasing an additional 1,841,486 shares during the last quarter. Capital International Investors increased its holdings in shares of Unity Software by 10.4% in the fourth quarter. Capital International Investors now owns 18,886,853 shares of the company's stock valued at $424,388,000 after buying an additional 1,786,032 shares in the last quarter. Atreides Management LP lifted its position in shares of Unity Software by 146.7% during the 1st quarter. Atreides Management LP now owns 9,430,955 shares of the company's stock valued at $184,752,000 after acquiring an additional 5,607,572 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of Unity Software by 1.8% during the 4th quarter. Geode Capital Management LLC now owns 4,769,609 shares of the company's stock valued at $107,208,000 after acquiring an additional 84,480 shares during the last quarter. Finally, Ameriprise Financial Inc. boosted its stake in shares of Unity Software by 89.7% during the 1st quarter. Ameriprise Financial Inc. now owns 3,357,530 shares of the company's stock worth $65,778,000 after acquiring an additional 1,587,582 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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