Unity Software (NYSE:U) Trading Up 7.6% - Here's Why

Key Points

• Unity Software Inc. saw its stock rise by 7.6% to $34.25, marking a significant price increase from its previous close at $31.83.
• Several analysts have revised their price targets for Unity, with Citigroup increasing its target from $29.00 to $44.00 while Barclays cut theirs from $26.00 to $25.00.
• The company reported a loss of $0.19 EPS for the last quarter, exceeding expectations, but also experienced a revenue decline of 5.5% year-over-year.

Unity Software Inc. (NYSE:U - Get Free Report) traded up 7.6% during trading on Monday . The company traded as high as $34.18 and last traded at $34.25. 4,128,722 shares traded hands during mid-day trading, a decline of 66% from the average session volume of 12,041,051 shares. The stock had previously closed at $31.83.

Analysts Set New Price Targets

A number of analysts have commented on the stock. Citigroup upped their price target on shares of Unity Software from $29.00 to $44.00 and gave the company a "buy" rating in a research report on Wednesday, July 23rd. Barclays cut their target price on Unity Software from $26.00 to $25.00 and set an "equal weight" rating on the stock in a research report on Thursday, May 8th. Morgan Stanley lowered their target price on Unity Software from $32.00 to $25.00 and set an "overweight" rating for the company in a report on Thursday, April 17th. Stifel Nicolaus cut their price target on Unity Software from $35.00 to $28.00 and set a "buy" rating on the stock in a report on Thursday, May 8th. Finally, Jefferies Financial Group raised their price target on shares of Unity Software from $29.00 to $35.00 and gave the stock a "buy" rating in a report on Wednesday, July 16th. Two analysts have rated the stock with a sell rating, ten have assigned a hold rating, seven have given a buy rating and two have issued a strong buy rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $27.22.

Unity Software Stock Performance

The business's fifty day moving average price is $27.50 and its 200-day moving average price is $23.64. The company has a debt-to-equity ratio of 0.70, a current ratio of 2.74 and a quick ratio of 2.74. The stock has a market capitalization of $14.05 billion, a PE ratio of -30.15 and a beta of 2.32.

Unity Software (NYSE:U - Get Free Report) last issued its quarterly earnings data on Wednesday, May 7th. The company reported ($0.19) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.38) by $0.19. The company had revenue of $435.00 million for the quarter, compared to the consensus estimate of $415.77 million. Unity Software had a negative return on equity of 14.12% and a negative net margin of 25.21%. The firm's revenue was down 5.5% compared to the same quarter last year. During the same quarter last year, the business posted $0.28 earnings per share. As a group, equities research analysts expect that Unity Software Inc. will post -1.25 EPS for the current year.

Insider Activity

In related news, Director Tomer Bar-Zeev sold 250,000 shares of the 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 transaction, the director owned 2,398,146 shares of the company's stock, valued at approximately $63,287,072.94. This trade represents a 9.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Shlomo Dovrat sold 50,000 shares of the company's stock in a transaction dated Wednesday, July 9th. The shares were sold at an average price of $30.01, for a total transaction of $1,500,500.00. Following the sale, the director owned 189,089 shares of the company's stock, valued at approximately $5,674,560.89. The trade was a 20.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 1,110,142 shares of company stock worth $27,963,282. 3.61% of the stock is currently owned by insiders.

Institutional Trading of Unity Software

Several large investors have recently modified their holdings of the business. Farther Finance Advisors LLC lifted its position in Unity Software by 4.4% during the second quarter. Farther Finance Advisors LLC now owns 10,766 shares of the company's stock valued at $261,000 after buying an additional 454 shares during the period. Amalgamated Bank lifted its position in Unity Software by 3.0% during 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 period. Bouvel Investment Partners LLC boosted its stake in Unity Software by 1.7% during the first quarter. Bouvel Investment Partners LLC now owns 35,595 shares of the company's stock worth $697,000 after acquiring an additional 580 shares in the last quarter. Wealthfront Advisers LLC grew its holdings in Unity Software by 2.9% in the second quarter. Wealthfront Advisers LLC now owns 22,281 shares of the company's stock worth $539,000 after purchasing an additional 631 shares during the period. Finally, Signaturefd LLC increased its stake in shares of Unity Software by 26.3% during the first quarter. Signaturefd LLC now owns 3,658 shares of the company's stock valued at $72,000 after purchasing an additional 762 shares in the last quarter. 73.46% of the stock is owned by institutional investors.

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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