Unity Software (NYSE:U) Stock Price Up 10.8% - Still a Buy?

Key Points

• Unity Software Inc. shares increased by 10.8% during Tuesday's trading session, closing at $36.77 after previously trading as low as $33.19.
• Recent analyst ratings present a mixed outlook, with target prices ranging from $25 (BTIG Research) to $40 (Morgan Stanley), while the consensus rating is a "Moderate Buy" with an average target price of $31.20.
• Insider trading activity includes significant sales, with one director selling 50,000 shares at an average price of $30.01, indicating a potential decrease in confidence among company insiders.

Shares of Unity Software Inc. (NYSE:U - Get Free Report) rose 10.8% on Tuesday . The company traded as high as $36.68 and last traded at $36.77. Approximately 11,343,110 shares traded hands during mid-day trading, a decline of 9% from the average daily volume of 12,397,435 shares. The stock had previously closed at $33.19.

Wall Street Analyst Weigh In

U has been the subject of a number of recent research reports. BTIG Research lowered shares of Unity Software from a "neutral" rating to a "sell" rating and set a $25.00 target price for the company. in a report on Wednesday, July 23rd. Needham & Company LLC raised their target price on shares of Unity Software from $30.00 to $40.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Jefferies Financial Group raised their target price on shares of Unity Software from $29.00 to $35.00 and gave the company a "buy" rating in a report on Wednesday, July 16th. Stifel Nicolaus lowered their price target on Unity Software from $35.00 to $28.00 and set a "buy" rating for the company in a research report on Thursday, May 8th. Finally, Morgan Stanley raised their price target on Unity Software from $25.00 to $40.00 and gave the stock an "overweight" rating in a research report on Thursday, August 7th. Two research analysts have rated the stock with a sell rating, six have assigned a hold rating, nine have assigned a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $31.20.

Unity Software Stock Performance

The firm has a market capitalization of $15.79 billion, a P/E ratio of -35.25 and a beta of 2.32. The firm has a 50-day moving average price of $28.63 and a two-hundred day moving average price of $24.10. The company has a debt-to-equity ratio of 0.70, a current ratio of 2.73 and a quick ratio of 2.73.

Unity Software (NYSE:U - Get Free Report) last released its 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). Unity Software had a negative return on equity of 13.59% and a negative net margin of 24.38%. The business had revenue of $440.94 million for the quarter, compared to the consensus estimate of $425.18 million. During the same quarter last year, the business posted ($0.32) earnings per share. The firm's revenue for the quarter was down 1.9% compared to the same quarter last year. On average, analysts forecast that Unity Software Inc. will post -1.25 EPS for the current fiscal year.

Insider Activity

In other news, Director Shlomo Dovrat sold 50,000 shares of the firm's stock in a transaction on Wednesday, July 9th. The stock was sold at an average price of $30.01, for a total transaction of $1,500,500.00. Following the transaction, the director owned 189,089 shares in the company, valued at approximately $5,674,560.89. This trade represents a 20.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Tomer Bar-Zeev sold 250,000 shares of the firm's stock in a transaction on Monday, June 2nd. The shares were sold at an average price of $26.39, for a total value of $6,597,500.00. Following the transaction, the director owned 2,398,146 shares in the company, valued at approximately $63,287,072.94. This represents a 9.44% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,212,724 shares of company stock valued at $31,284,962. Company insiders own 3.61% of the company's stock.

Hedge Funds Weigh In On Unity Software

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. 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 acquiring an additional 1,212 shares during the last quarter. CX Institutional purchased a new stake in Unity Software in the second quarter valued at approximately $25,000. Anderson Financial Strategies LLC purchased a new stake in Unity Software in the fourth quarter valued at approximately $28,000. Banque Transatlantique SA purchased a new stake in Unity Software in the first quarter valued at approximately $28,000. Finally, Atlantic Union Bankshares Corp purchased a new stake in Unity Software in the second quarter valued at approximately $28,000. Hedge funds and other institutional investors own 73.46% of the company's stock.

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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