Unity Software (NYSE:U) Shares Up 6.6% Following Analyst Upgrade

Key Points

• Unity Software's shares increased by 6.6% after UBS Group upgraded the stock's price target from $35.00 to $40.00, while maintaining a neutral rating.
• Several analysts have varying ratings on Unity Software, with eleven analysts giving a Hold rating and three issuing Sell ratings, resulting in a consensus rating of "Hold" and a target price of $33.81.
• Insider transactions indicate significant selling activity, with Director David Helgason selling 1,350,000 shares for approximately $59.98 million, leading to an 18.03% decrease in his ownership.

Unity Software Inc. (NYSE:U - Get Free Report)'s share price rose 6.6% during trading on Tuesday after UBS Group raised their price target on the stock from $35.00 to $40.00. UBS Group currently has a neutral rating on the stock. Unity Software traded as high as $37.29 and last traded at $37.60. Approximately 1,918,469 shares changed hands during mid-day trading, a decline of 84% from the average daily volume of 12,056,939 shares. The stock had previously closed at $35.27.

A number of other analysts have also commented on U. The Goldman Sachs Group initiated coverage on Unity Software in a report on Wednesday, October 15th. They set a "neutral" rating and a $38.00 price objective for the company. BTIG Research lowered 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. Hsbc Global Res downgraded Unity Software from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 30th. Jefferies Financial Group boosted their target price on Unity Software from $29.00 to $35.00 and gave the stock a "buy" rating in a research note on Wednesday, July 16th. Finally, Wall Street Zen upgraded Unity Software from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eleven have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, Unity Software currently has a consensus rating of "Hold" and a consensus target price of $33.81.

Insiders Place Their Bets

In related news, Director David Helgason sold 1,350,000 shares of the company's stock in a transaction that occurred on Monday, September 8th. The stock was sold at an average price of $44.43, for a total value of $59,980,500.00. Following the transaction, the director owned 6,139,173 shares in the company, valued at approximately $272,763,456.39. This represents a 18.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Alexander Blum sold 63,813 shares of the company's stock in a transaction that occurred on Wednesday, August 27th. The shares were sold at an average price of $39.41, for a total value of $2,514,870.33. Following the completion of the transaction, the chief operating officer owned 603,811 shares in the company, valued at approximately $23,796,191.51. The trade was a 9.56% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 2,236,951 shares of company stock valued at $95,081,659 in the last quarter. 3.61% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Unity Software

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its holdings in Unity Software by 5.9% during the 1st quarter. Vanguard Group Inc. now owns 32,964,521 shares of the company's stock valued at $645,775,000 after acquiring an additional 1,841,486 shares during the period. Slate Path Capital LP raised its holdings in Unity Software by 25.4% during the 2nd quarter. Slate Path Capital LP now owns 20,016,952 shares of the company's stock valued at $484,410,000 after acquiring an additional 4,048,484 shares during the period. Atreides Management LP raised its holdings in 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 period. Norges Bank bought a new stake in Unity Software during the 2nd quarter valued at $151,221,000. Finally, Geode Capital Management LLC raised its holdings in Unity Software by 0.7% during the 2nd quarter. Geode Capital Management LLC now owns 5,064,703 shares of the company's stock valued at $122,587,000 after acquiring an additional 36,105 shares during the period. Institutional investors own 73.46% of the company's stock.

Unity Software Price Performance

The business's fifty day simple moving average is $40.21 and its 200-day simple moving average is $30.38. The company has a current ratio of 2.73, a quick ratio of 2.73 and a debt-to-equity ratio of 0.70. The firm has a market cap of $16.11 billion, a P/E ratio of -35.97 and a beta of 2.32.

Unity Software (NYSE:U - Get Free Report) last released 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 firm had revenue of $440.94 million during 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%.The company's revenue for the quarter was down 1.9% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.32) EPS. As a group, analysts forecast that Unity Software Inc. will post -1.25 EPS for the current fiscal year.

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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