Unity Software (NYSE:U) Upgraded to "Buy" at Benchmark

Key Points

• Benchmark upgraded Unity Software to “Buy” from “Hold” and set a $50 price target, implying approximately 22% upside from the stock’s current price.
• Analyst sentiment is broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $41.95; BTIG recently raised its target to $51.
• Unity shares were trading up 15.4%, supported by better-than-expected quarterly results, improved profitability and cash flow, and revenue guidance above analyst expectations.

Unity Software (NYSE:U - Get Free Report) was upgraded by investment analysts at Benchmark from a "hold" rating to a "buy" rating in a research note issued on Friday. The firm presently has a $50.00 target price on the stock. Benchmark's target price points to a potential upside of 22.12% from the company's current price.

A number of other analysts have also recently commented on the company. Piper Sandler reaffirmed an "overweight" rating and issued a $45.00 price target (up from $40.00) on shares of Unity Software in a research note on Thursday, July 30th. Wells Fargo & Company boosted their price objective on shares of Unity Software from $35.00 to $36.00 and gave the company an "overweight" rating in a report on Tuesday, July 7th. Raymond James Financial initiated coverage on shares of Unity Software in a research note on Monday, June 29th. They issued a "market perform" rating for the company. Zacks Research upgraded shares of Unity Software from a "hold" rating to a "strong-buy" rating in a report on Monday, July 13th. Finally, BTIG Research boosted their price target on shares of Unity Software from $43.00 to $51.00 and gave the company a "buy" rating in a report on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $41.95.

Unity Software Trading Up 15.4%

NYSE:U opened at $40.94 on Friday. The company has a current ratio of 1.95, a quick ratio of 1.95 and a debt-to-equity ratio of 0.56. Unity Software has a 1-year low of $16.78 and a 1-year high of $52.15. The firm has a market capitalization of $17.87 billion, a price-to-earnings ratio of -26.08, a PEG ratio of 4.20 and a beta of 2.04. The business's 50-day moving average price is $29.89 and its two-hundred day moving average price is $26.57.

Insider Activity at Unity Software

In other news, CEO Matthew S. Bromberg sold 138,993 shares of the stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $27.18, for a total transaction of $3,777,829.74. Following the completion of the sale, the chief executive officer owned 1,557,514 shares of the company's stock, valued at $42,333,230.52. This represents a 8.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Rebecca Berenice Boyden sold 952 shares of the business's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $27.20, for a total transaction of $25,894.40. Following the completion of the sale, the senior vice president directly owned 309,445 shares in the company, valued at $8,416,904. This represents a 0.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 198,321 shares of company stock valued at $5,390,783 over the last three months. Insiders own 0.77% of the company's stock.

Institutional Trading of Unity Software

Institutional investors have recently modified their holdings of the company. REAP Financial Group LLC acquired a new stake in Unity Software in the 4th quarter valued at approximately $28,000. Larson Financial Group LLC boosted its position in Unity Software by 88.1% during the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company's stock worth $29,000 after acquiring an additional 341 shares during the last quarter. V Square Quantitative Management LLC acquired a new position in Unity Software during the 4th quarter worth approximately $30,000. IFP Advisors Inc bought a new position in shares of Unity Software during the 3rd quarter worth approximately $33,000. Finally, International Assets Investment Management LLC acquired a new stake in shares of Unity Software in the fourth quarter valued at approximately $36,000. 73.46% of the stock is currently owned by institutional investors.

Unity Software News Summary

Here are the key news stories impacting Unity Software this week:

• Positive Sentiment: Q2 results exceeded expectations. Unity reported revenue of approximately $546.5 million, up about 24% year over year and ahead of the roughly $514 million consensus. Adjusted earnings were $0.28 per share, also above estimates near $0.24-$0.25 and a loss reported in the year-ago period. Unity Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Profitability and cash flow improved sharply. Management highlighted record free cash flow and indicated that GAAP profitability could arrive in the third quarter of 2026, earlier than previously expected. The results were described by the CEO as potentially Unity’s best quarter since becoming a public company. Unity Q2 2026 Earnings Call Highlights
• Positive Sentiment: Guidance topped analyst expectations. Unity forecast third-quarter revenue of $540 million to $550 million, above the approximately $533.8 million consensus, along with a 33% adjusted EBITDA margin. Management cited momentum in its Vector product and continued strength in Grow Solutions. Unity Forecasts Q3 Strategic Revenue and Margin
• Positive Sentiment: Analyst sentiment strengthened. BTIG Research raised its price target from $43 to $51 and maintained a Buy rating, suggesting additional potential upside based on improving growth and profitability. BTIG Research Price Target Update
• Neutral Sentiment: Options activity turned more bullish. Investors purchased 41,488 Unity call options, about 30% above typical daily call volume. This indicates increased trading interest but does not guarantee continued gains.

Unity Software Company Profile

Unity Software is a leading provider of a real-time 3D development platform that enables creators across industries to design, build and operate interactive, real-time experiences. Originally focused on the game development market, Unity's technology now extends into sectors such as film, automotive, architecture, engineering and construction, delivering immersive content for mobile, desktop, console, augmented reality and virtual reality devices. The company's core offering comprises a suite of authoring tools, runtime engines and cloud services that streamline the creation and deployment of interactive 3D applications.

The Unity Editor serves as the central hub where developers design scenes, script behavior and iterate on assets.

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