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

Key Points

• Unity Software was downgraded by HSBC from a "buy" to a "hold" rating, with a price target of $40.80, implying a potential downside of 4.90% from its current price.
• The stock has seen varying opinions from other analysts, with price targets ranging from $15.00 to $44.00, reflecting mixed sentiment on its future performance.
• In recent insider trading, significant shares were sold by directors, indicating potential concerns or shifts in confidence regarding the company's stock.

Unity Software (NYSE:U - Get Free Report) was downgraded by equities researchers at HSBC from a "buy" rating to a "hold" rating in a research note issued on Tuesday,Finviz reports. They currently have a $40.80 price objective on the stock. HSBC's price objective suggests a potential downside of 4.90% from the stock's current price.

Other equities analysts have also recently issued research reports about the company. Barclays lifted their target price on Unity Software from $25.00 to $30.00 and gave the stock an "equal weight" rating in a report on Thursday, August 7th. Zacks Research cut Unity Software from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 13th. Wedbush lifted their target price on Unity Software from $39.00 to $41.00 and gave the stock an "outperform" rating in a report on Thursday, August 7th. Citigroup lifted their target price on Unity Software from $29.00 to $44.00 and gave the stock a "buy" rating in a report on Wednesday, July 23rd. Finally, Bank of America initiated coverage on Unity Software in a report on Thursday, June 26th. They set an "underperform" rating and a $15.00 price objective for the company. Two investment analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, eight have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $31.65.

Unity Software Trading Up 0.3%

Unity Software stock opened at $42.90 on Tuesday. 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 has a one year low of $15.33 and a one year high of $46.94. The stock has a market capitalization of $18.13 billion, a PE ratio of -40.47 and a beta of 2.33. The business's fifty day moving average is $39.02 and its 200 day moving average is $28.67.

Unity Software (NYSE:U - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported ($0.26) EPS 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 company had revenue of $440.94 million during the quarter, compared to the consensus estimate of $425.18 million. During the same period last year, the business earned ($0.32) EPS. The firm's quarterly revenue was down 1.9% compared to the same quarter last year. On average, sell-side analysts predict that Unity Software will post -1.25 EPS for the current year.

Insider Buying and Selling at Unity Software

In other news, Director Shlomo Dovrat sold 50,000 shares of the 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 of the company's stock, valued at approximately $5,674,560.89. This represents a 20.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director David Helgason sold 1,350,000 shares of the stock in a transaction 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 directly owned 6,139,173 shares in the company, valued at $272,763,456.39. The trade was a 18.03% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 2,134,426 shares of company stock worth $89,426,284. Insiders own 3.61% of the company's stock.

Institutional Investors Weigh In On Unity Software

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Cornerstone Planning Group LLC increased its stake in 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 acquired a new stake in Unity Software during the second quarter worth $25,000. Banque Transatlantique SA acquired a new stake in Unity Software during the first quarter worth $28,000. Atlantic Union Bankshares Corp acquired a new stake in Unity Software during the second quarter worth $28,000. Finally, Allworth Financial LP increased its stake in Unity Software by 28.4% during the second quarter. Allworth Financial LP now owns 1,865 shares of the company's stock worth $45,000 after acquiring an additional 412 shares during the last quarter. Institutional investors and hedge funds 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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