Unity Software (NYSE:U) Trading Up 7.7% - Should You Buy?

Unity Software Inc. (NYSE:U - Get Free Report)'s share price shot up 7.7% on Thursday . The stock traded as high as $25.90 and last traded at $26.15. 7,261,257 shares changed hands during mid-day trading, a decline of 37% from the average session volume of 11,511,344 shares. The stock had previously closed at $24.28.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on U. Citizens Jmp upgraded Unity Software from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, March 11th. Wall Street Zen downgraded shares of Unity Software from a "buy" rating to a "hold" rating in a report on Friday, June 27th. Wells Fargo & Company dropped their target price on shares of Unity Software from $22.00 to $19.00 and set an "equal weight" rating on the stock in a research report on Tuesday, April 8th. UBS Group reduced their price target on shares of Unity Software from $30.00 to $22.00 and set a "neutral" rating for the company in a research report on Friday, April 11th. Finally, Citigroup raised shares of Unity Software from a "neutral" rating to a "buy" rating and set a $30.00 price target on the stock in a research note on Tuesday, March 11th. One equities research analyst has rated the stock with a sell rating, ten have assigned a hold rating, six have issued a buy rating and three have issued a strong buy rating to the stock. According to MarketBeat.com, Unity Software has a consensus rating of "Moderate Buy" and an average price target of $24.47.

Unity Software Stock Performance

The company has a debt-to-equity ratio of 0.70, a quick ratio of 2.74 and a current ratio of 2.74. The firm's 50-day moving average price is $23.06 and its two-hundred day moving average price is $22.30. The stock has a market cap of $10.81 billion, a price-to-earnings ratio of -23.22 and a beta of 2.29.

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

Insider Buying and Selling

In other news, SVP Anirma Gupta sold 46,957 shares of the stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $21.24, for a total transaction of $997,366.68. Following the sale, the senior vice president owned 644,952 shares of the company's stock, valued at approximately $13,698,780.48. This represents a 6.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Tomer Bar-Zeev sold 250,000 shares of the company's stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $26.39, for a total transaction of $6,597,500.00. Following the sale, the director directly owned 2,398,146 shares in the company, valued at approximately $63,287,072.94. The trade was a 9.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,127,944 shares of company stock worth $27,166,375 over the last 90 days. 3.61% of the stock is owned by insiders.

Institutional Trading of Unity Software

Several hedge funds have recently modified their holdings of U. Vanguard Group Inc. raised its holdings in Unity Software by 5.9% in the first quarter. Vanguard Group Inc. now owns 32,964,521 shares of the company's stock valued at $645,775,000 after acquiring an additional 1,841,486 shares in the last quarter. Capital International Investors increased its position in shares of Unity Software by 10.4% in the 4th quarter. Capital International Investors now owns 18,886,853 shares of the company's stock valued at $424,388,000 after purchasing an additional 1,786,032 shares during the last quarter. Norges Bank acquired a new stake in shares of Unity Software in the 4th quarter valued at $269,320,000. Atreides Management LP lifted its position in shares of Unity Software by 146.7% during the 1st quarter. Atreides Management LP now owns 9,430,955 shares of the company's stock worth $184,752,000 after purchasing an additional 5,607,572 shares during the last quarter. Finally, Geode Capital Management LLC lifted its position in shares of Unity Software by 1.8% during the 4th quarter. Geode Capital Management LLC now owns 4,769,609 shares of the company's stock worth $107,208,000 after purchasing an additional 84,480 shares during the last quarter. 73.46% of the stock is currently 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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