Unity Software (NYSE:U) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Key Points

• Wells Fargo & Company raised its price objective for Unity Software from $24.00 to $29.00, maintaining an "equal weight" rating despite indicating a potential downside of 12.08% from the current price.
• Unity Software reported a quarterly revenue of $440.94 million, exceeding analyst estimates, but reported a loss of ($0.26) earnings per share, slightly missing expectations.
• Analysts have varied opinions on Unity, with ratings including two sell, nine hold, eight buy, and two strong buy, and an average target price of $29.85.

Unity Software (NYSE:U - Get Free Report) had its price objective lifted by Wells Fargo & Company from $24.00 to $29.00 in a research report issued on Thursday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Wells Fargo & Company's target price indicates a potential downside of 12.08% from the stock's current price.

Several other equities analysts also recently commented on the company. Citigroup upped their target price on Unity Software from $29.00 to $44.00 and gave the company a "buy" rating in a research report on Wednesday, July 23rd. JMP Securities upped their price target on shares of Unity Software from $30.00 to $35.00 and gave the stock a "market outperform" rating in a report on Thursday. Bank of America assumed coverage on shares of Unity Software in a research note on Thursday, June 26th. They issued an "underperform" rating and a $15.00 price objective on the stock. Jefferies Financial Group upped their target price on Unity Software from $29.00 to $35.00 and gave the company a "buy" rating in a report on Wednesday, July 16th. Finally, Barclays boosted their price target on Unity Software from $25.00 to $30.00 and gave the company an "equal weight" rating in a research note on Thursday. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating, eight have issued a buy rating and two have given a strong buy rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $29.85.

Unity Software Stock Performance

NYSE:U traded up $1.06 during midday trading on Thursday, reaching $32.98. The stock had a trading volume of 10,725,407 shares, compared to its average volume of 12,385,856. The firm's fifty day simple moving average is $28.16 and its 200-day simple moving average is $23.85. Unity Software has a 1-year low of $13.94 and a 1-year high of $38.96. The stock has a market capitalization of $13.71 billion, a P/E ratio of -29.29 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.

Unity Software (NYSE:U - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.25) by ($0.01). Unity Software had a negative return on equity of 14.12% and a negative net margin of 25.21%. The business had revenue of $440.94 million during the quarter, compared to analyst estimates of $425.18 million. During the same period last year, the company earned ($0.32) EPS. The business's revenue for the quarter was down 1.9% on a year-over-year basis. On average, equities research analysts forecast that Unity Software will post -1.25 EPS for the current fiscal year.

Insider Buying and Selling at Unity Software

In related news, Director Tomer Bar-Zeev sold 250,000 shares of the company's stock in a transaction on Monday, June 2nd. The shares were sold at an average price of $26.39, for a total transaction of $6,597,500.00. Following the completion of the sale, the director directly owned 2,398,146 shares in the company, valued at $63,287,072.94. This represents a 9.44% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director James M. Whitehurst sold 72,955 shares of the business's stock in a transaction on Tuesday, May 27th. The stock was sold at an average price of $21.24, for a total value of $1,549,564.20. Following the completion of the sale, the director directly owned 240,311 shares in the company, valued at $5,104,205.64. This trade represents a 23.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,210,142 shares of company stock worth $31,199,782. 3.61% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Cornerstone Planning Group LLC grew its stake in shares of Unity Software by 30,300.0% during the first quarter. Cornerstone Planning Group LLC now owns 1,216 shares of the company's stock worth $25,000 after purchasing an additional 1,212 shares in the last quarter. CX Institutional purchased a new stake in Unity Software during the 2nd quarter worth about $25,000. Anderson Financial Strategies LLC purchased a new position in Unity Software during the fourth quarter worth about $28,000. Banque Transatlantique SA acquired a new stake in Unity Software during the first quarter worth about $28,000. Finally, Atlantic Union Bankshares Corp purchased a new stake in shares of Unity Software during the second quarter valued at approximately $28,000. Institutional investors own 73.46% of the company's stock.

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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