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

Key Points

• Wells Fargo raised its price target on Unity to $35 (from $29) and maintained an "overweight" rating, implying roughly a 27% upside
• Unity reported a Q1 revenue beat and management highlighted AI-driven ad monetization gains, guiding for continued strong ad revenue growth (management flagged roughly 50% year‑over‑year ad rev growth).
• The company took a $279M impairment related to winding down the ironSource ad network and selling Supersonic, which will weigh on near‑term GAAP profits.

Unity Software (NYSE:U - Get Free Report) had its price objective lifted by stock analysts at Wells Fargo & Company from $29.00 to $35.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has an "overweight" rating on the stock. Wells Fargo & Company's price objective suggests a potential upside of 27.03% from the stock's current price.

Several other analysts have also recently weighed in on the company. Freedom Capital upgraded Unity Software to a "strong-buy" rating in a report on Thursday, January 15th. Citigroup reduced their price target on Unity Software from $43.00 to $40.00 and set a "buy" rating on the stock in a report on Thursday, April 30th. The Goldman Sachs Group reduced their price target on Unity Software from $47.00 to $27.00 and set a "neutral" rating on the stock in a report on Thursday, February 12th. Oppenheimer raised Unity Software from a "market perform" rating to an "outperform" rating and set a $38.00 price objective on the stock in a research note on Tuesday, February 10th. Finally, Barclays cut their price objective on Unity Software from $35.00 to $28.00 and set an "equal weight" rating on the stock in a research note on Thursday, February 12th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Unity Software currently has a consensus rating of "Moderate Buy" and an average price target of $38.49.

Unity Software Trading Up 3.1%

Shares of NYSE:U traded up $0.82 during midday trading on Friday, hitting $27.55. 2,614,566 shares of the stock were exchanged, compared to its average volume of 16,417,375. The stock has a market capitalization of $12.02 billion, a price-to-earnings ratio of -28.48, a P/E/G ratio of 10.05 and a beta of 2.04. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.84 and a current ratio of 1.84. The business's 50-day moving average price is $22.06 and its 200 day moving average price is $32.57. Unity Software has a 12 month low of $16.78 and a 12 month high of $52.15.

Unity Software (NYSE:U - Get Free Report) last released its quarterly earnings results on Wednesday, February 11th. The company reported $0.24 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.04. The company had revenue of $503.09 million for the quarter, compared to analysts' expectations of $490.64 million. Unity Software had a negative return on equity of 4.76% and a negative net margin of 21.77%.The business's quarterly revenue was up 10.1% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.30) earnings per share. Analysts predict that Unity Software will post 0.13 earnings per share for the current year.

Insider Buying and Selling

In related news, COO Alexander Blum sold 10,164 shares of Unity Software stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total value of $183,663.48. Following the transaction, the chief operating officer directly owned 550,966 shares of the company's stock, valued at $9,955,955.62. The trade was a 1.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Mark Barrysmith sold 10,578 shares of Unity Software stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total value of $191,144.46. Following the completion of the transaction, the chief accounting officer directly owned 383,901 shares in the company, valued at approximately $6,937,091.07. This represents a 2.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 41,684 shares of company stock valued at $773,350 over the last ninety days. 0.77% of the stock is owned by company insiders.

Institutional Investors Weigh In On Unity Software

A number of hedge funds have recently added to or reduced their stakes in U. Wellington Management Group LLP increased its holdings in Unity Software by 58.7% in the third quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company's stock worth $729,284,000 after purchasing an additional 6,734,285 shares in the last quarter. Norges Bank bought a new stake in Unity Software in the fourth quarter worth approximately $230,285,000. Massachusetts Financial Services Co. MA bought a new stake in Unity Software in the third quarter worth approximately $106,233,000. Duquesne Family Office LLC bought a new stake in Unity Software in the second quarter worth approximately $42,932,000. Finally, Dimensional Fund Advisors LP increased its holdings in Unity Software by 52.8% in the first quarter. Dimensional Fund Advisors LP now owns 4,245,014 shares of the company's stock worth $93,089,000 after purchasing an additional 1,465,962 shares in the last quarter. 73.46% of the stock is currently owned by institutional investors.

Unity Software News Roundup

Here are the key news stories impacting Unity Software this week:

• Positive Sentiment: AI-driven monetization lift — Unity’s Vector product and AI features drove outsized Grow revenue gains (reported ~+49% YoY in Grow) and management highlighted new agentic Unity AI capabilities that support cross‑sell and stronger ad-tech revenue prospects. Unity: Blockbuster Q1 2026 Results With Outsized Ad/Game Monetization Trends
• Positive Sentiment: Analyst upgrades — Several brokers raised targets and reiterated buys (Needham to $40; BTIG to $43), signaling upside expectations tied to ad-tech/AI momentum. Needham raises PT to $40 BTIG raises PT to $43
• Positive Sentiment: Beat on revenue and upbeat guidance commentary — Q1 revenue (~$508M, ~+17% YoY) topped estimates and management guided for continued strong ad revenue growth into Q2 (management flagged ~50% Y/Y ad rev growth). Unity Reports First Quarter 2026 Financial Results Q1 2026 Earnings Call Transcript
• Positive Sentiment: Options flow — unusually high call buying (≈57,980 calls) signals some investors positioning for upside in the short term.
• Neutral Sentiment: Tiny EPS miss — reported EPS of $0.23 missed consensus by $0.01; revenue growth remains the stronger driver. Zacks: Q1 Earnings Lag Estimates
• Neutral Sentiment: Smaller price-target move — UBS nudged its target to $28 (modest), reflecting mixed near-term readthroughs while other firms are more bullish. UBS raises PT to $28
• Negative Sentiment: Large impairment charge — Unity took a $279M impairment tied to winding down the ironSource ad network and selling Supersonic, which will weigh on GAAP profits and is the main near-term drag on the stock. Unity posts Q1 revenue beat, flags impairment charges on ironSource wind-down

About Unity Software

Unity Software is a leading provider of a real-time 3D development platform that enables creators across industries to design, build and operate interactive, real-time experiences. Originally focused on the game development market, Unity's technology now extends into sectors such as film, automotive, architecture, engineering and construction, delivering immersive content for mobile, desktop, console, augmented reality and virtual reality devices. The company's core offering comprises a suite of authoring tools, runtime engines and cloud services that streamline the creation and deployment of interactive 3D applications.

The Unity Editor serves as the central hub where developers design scenes, script behavior and iterate on assets.

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