Unity Software (NYSE:U) Upgraded to "Hold" at Arete Research

Key Points

• Unity Software has been upgraded by Arete Research from a "hold" to a "buy" rating, contributing to a mix of ratings from various analysts.
• The company reported a net loss of $0.26 EPS for the latest quarter, slightly missing expectations but achieving a revenue of $440.94 million, which exceeded analyst estimates.
• Insider transactions indicate significant selling activity, with insiders offloading over 2.2 million shares valued at approximately $95 million in the past ninety days, reflecting a decrease in their ownership stakes.

Unity Software (NYSE:U - Get Free Report) was upgraded by investment analysts at Arete Research to a "hold" rating in a report released on Thursday,Zacks.com reports.

U has been the topic of several other reports. Wall Street Zen raised Unity Software from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. Zacks Research downgraded Unity Software from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 13th. Needham & Company LLC boosted their price target on Unity Software from $30.00 to $40.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Barclays boosted their price target on Unity Software from $25.00 to $30.00 and gave the company an "equal weight" rating in a research note on Thursday, August 7th. Finally, Jefferies Financial Group boosted their price target on Unity Software from $29.00 to $35.00 and gave the company a "buy" rating in a research note on Wednesday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $33.16.

Unity Software Trading Up 1.2%

U opened at $35.15 on Thursday. The firm has a market cap of $14.85 billion, a price-to-earnings ratio of -33.16 and a beta of 2.32. The company has a current ratio of 2.73, a quick ratio of 2.73 and a debt-to-equity ratio of 0.70. Unity Software has a 12 month low of $15.33 and a 12 month high of $46.94. The stock has a fifty day moving average price of $40.17 and a 200-day moving average price of $30.10.

Unity Software (NYSE:U - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.25) by ($0.01). Unity Software had a negative net margin of 24.38% and a negative return on equity of 13.59%. The business had revenue of $440.94 million for the quarter, compared to analyst estimates of $425.18 million. During the same period in the prior year, the company earned ($0.32) earnings per share. The company's quarterly revenue was down 1.9% on a year-over-year basis. As a group, equities research analysts anticipate that Unity Software will post -1.25 earnings per share for the current fiscal year.

Insider Transactions at Unity Software

In other news, CAO Mark Barrysmith sold 802 shares of the company's stock in a transaction dated Thursday, October 16th. The stock was sold at an average price of $36.22, for a total value of $29,048.44. Following the sale, the chief accounting officer owned 452,986 shares in the company, valued at $16,407,152.92. This represents a 0.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Anirma Gupta sold 2,734 shares of the company's stock in a transaction dated Wednesday, October 15th. The stock was sold at an average price of $37.85, for a total value of $103,481.90. Following the completion of the sale, the senior vice president owned 175,510 shares in the company, valued at $6,643,053.50. The trade was a 1.53% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 2,236,951 shares of company stock valued at $95,081,659. 3.61% of the stock is owned by insiders.

Hedge Funds Weigh In On Unity Software

A number of large investors have recently bought and sold shares of U. Norges Bank acquired a new position in Unity Software in the 2nd quarter worth about $151,221,000. Atreides Management LP raised its holdings in Unity Software by 146.7% in 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 period. Slate Path Capital LP raised its holdings in Unity Software by 25.4% in the 2nd quarter. Slate Path Capital LP now owns 20,016,952 shares of the company's stock worth $484,410,000 after purchasing an additional 4,048,484 shares during the period. Broad Peak Investment Advisers Pte Ltd acquired a new position in Unity Software in the 1st quarter worth about $47,648,000. Finally, Fuller & Thaler Asset Management Inc. acquired a new position in Unity Software in the 1st quarter worth about $43,265,000. 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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