Unity Software (NYSE:U) Stock Rating Lowered by Arete

Key Points

• Unity Software was downgraded from a "buy" to a "neutral" rating by Arete, with a price target of $36.00, suggesting a potential downside of 3.72% from the last close.
• A total of 11 analysts have issued a "Hold" rating for the stock, with a consensus target price of $33.16.
• Insider selling has been notable, with CEO Matthew S. Bromberg and COO Alexander Blum both decreasing their shares, indicating a potential lack of confidence among company executives.

Unity Software (NYSE:U - Get Free Report) was downgraded by equities researchers at Arete from a "buy" rating to a "neutral" rating in a research report issued on Thursday,Finviz reports. They presently have a $36.00 price target on the stock. Arete's price objective indicates a potential downside of 3.72% from the company's previous close.

Several other research analysts have also weighed in on U. JMP Securities boosted their price target on Unity Software from $30.00 to $35.00 and gave the stock a "market outperform" rating in a research report on Thursday, August 7th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Unity Software in a research report on Wednesday, October 8th. Hsbc Global Res lowered Unity Software from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 30th. Morgan Stanley boosted 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. Finally, Needham & Company LLC boosted their price target on Unity Software from $30.00 to $40.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $33.16.

Unity Software Trading Up 2.2%

NYSE U opened at $37.39 on Thursday. The stock has a market capitalization of $15.80 billion, a price-to-earnings ratio of -35.28 and a beta of 2.32. The stock's 50 day moving average price is $40.11 and its two-hundred day moving average price is $29.90. The company has a debt-to-equity ratio of 0.70, a quick ratio of 2.73 and a current ratio of 2.73. Unity Software has a 52 week low of $15.33 and a 52 week high of $46.94.

Unity Software (NYSE:U - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported ($0.26) EPS 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 net margin of 24.38% and a negative return on equity of 13.59%. The company's revenue was down 1.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.32) EPS. As a group, analysts anticipate that Unity Software will post -1.25 earnings per share for the current fiscal year.

Insider Buying and Selling at Unity Software

In other news, CEO Matthew S. Bromberg sold 120,000 shares of the company's stock in a transaction on Tuesday, August 26th. The stock was sold at an average price of $40.03, for a total transaction of $4,803,600.00. Following the transaction, the chief executive officer directly owned 1,222,812 shares of the company's stock, valued at approximately $48,949,164.36. This represents a 8.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Alexander Blum sold 63,813 shares of the company's stock in a transaction on Wednesday, August 27th. The stock was sold at an average price of $39.41, for a total value of $2,514,870.33. Following the transaction, the chief operating officer directly owned 603,811 shares in the company, valued at approximately $23,796,191.51. The trade was a 9.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 2,233,415 shares of company stock valued at $94,949,128. Corporate insiders own 3.61% of the company's stock.

Hedge Funds Weigh In On Unity Software

Several hedge funds have recently made changes to their positions in U. GAMMA Investing LLC increased its position in shares of Unity Software by 72.5% in the 1st quarter. GAMMA Investing LLC now owns 2,822 shares of the company's stock valued at $55,000 after acquiring an additional 1,186 shares during the period. Wealth Enhancement Advisory Services LLC purchased a new position in Unity Software in the 1st quarter valued at about $2,215,000. Janney Montgomery Scott LLC lifted its stake in Unity Software by 116.2% in the 1st quarter. Janney Montgomery Scott LLC now owns 29,085 shares of the company's stock valued at $570,000 after buying an additional 15,633 shares in the last quarter. Oppenheimer & Co. Inc. acquired a new stake in Unity Software in the 1st quarter valued at about $433,000. Finally, Amalgamated Bank raised its holdings in Unity Software by 3.0% in the 1st quarter. Amalgamated Bank now owns 18,132 shares of the company's stock valued at $355,000 after acquiring an additional 525 shares during the last quarter. 73.46% of the stock is owned by institutional investors and hedge funds.

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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