Unity Software's (U) "Buy" Rating Reiterated at BTIG Research

Key Points

• BTIG Research reiterated a "Buy" rating on Unity with a $39 price target — roughly a 50% upside — while the analyst consensus is a "Moderate Buy" with an average target of $37.41.
• Unity topped estimates last quarter (EPS $0.24 vs. $0.20; revenue $503.1M vs. $490.6M, +10.1% YoY) but remains unprofitable, reporting a -21.77% net margin and negative return on equity.
• Company insiders have been selling recently (41,684 shares in the past 90 days) even as institutional investors own about 73.5% of the stock.

Unity Software (NYSE:U - Get Free Report)'s stock had its "buy" rating reiterated by BTIG Research in a research report issued on Monday,Benzinga reports. They currently have a $39.00 target price on the stock. BTIG Research's price target would indicate a potential upside of 50.28% from the company's previous close.

Several other analysts have also issued reports on the stock. Morgan Stanley raised their price target on shares of Unity Software from $30.00 to $32.00 and gave the stock an "overweight" rating in a research report on Friday, March 27th. Benchmark restated a "hold" rating on shares of Unity Software in a research report on Monday, February 2nd. Weiss Ratings restated a "sell (d-)" rating on shares of Unity Software in a research report on Wednesday, January 21st. Jefferies Financial Group raised their price target on shares of Unity Software from $49.00 to $55.00 and gave the stock a "buy" rating in a research report on Monday, January 5th. Finally, Wedbush reaffirmed an "outperform" rating and set a $30.00 price objective on shares of Unity Software in a report on Friday, March 27th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $37.41.

Unity Software Stock Performance

Shares of U opened at $25.95 on Monday. The company has a market capitalization of $11.32 billion, a PE ratio of -27.03, a price-to-earnings-growth ratio of 9.58 and a beta of 2.00. Unity Software has a one year low of $16.78 and a one year high of $52.15. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.84 and a quick ratio of 1.84. The company's fifty day moving average price is $20.87 and its 200 day moving average price is $33.05.

Unity Software (NYSE:U - Get Free Report) last announced its earnings results on Wednesday, February 11th. The company reported $0.24 EPS for the quarter, topping the consensus estimate of $0.20 by $0.04. The firm had revenue of $503.09 million for the quarter, compared to the consensus estimate of $490.64 million. Unity Software had a negative net margin of 21.77% and a negative return on equity of 4.76%. The business's quarterly revenue was up 10.1% on a year-over-year basis. During the same quarter last year, the firm posted ($0.30) EPS. As a group, analysts expect that Unity Software will post 0.13 earnings per share for the current year.

Insiders Place Their Bets

In other Unity Software news, CFO Jarrod Yahes sold 6,205 shares of the company's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $21.03, for a total transaction of $130,491.15. Following the sale, the chief financial officer directly owned 728,381 shares of the company's stock, valued at approximately $15,317,852.43. This represents a 0.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Alexander Blum sold 2,541 shares of the company's stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $18.76, for a total transaction of $47,669.16. Following the sale, the chief operating officer directly owned 548,425 shares in the company, valued at $10,288,453. This represents a 0.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 41,684 shares of company stock valued at $773,350. 0.77% of the stock is currently owned by insiders.

Institutional Trading of Unity Software

Large investors have recently added to or reduced their stakes in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Unity Software by 5.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 813,176 shares of the company's stock worth $15,930,000 after purchasing an additional 45,481 shares during the last quarter. Focus Partners Wealth bought a new position in shares of Unity Software in the 1st quarter valued at about $260,000. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Unity Software by 28.9% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 5,542 shares of the company's stock valued at $134,000 after purchasing an additional 1,241 shares during the last quarter. California Public Employees Retirement System boosted its stake in shares of Unity Software by 11.3% in the 2nd quarter. California Public Employees Retirement System now owns 520,774 shares of the company's stock valued at $12,603,000 after purchasing an additional 53,015 shares during the last quarter. Finally, Sei Investments Co. boosted its stake in shares of Unity Software by 1,135.6% in the 2nd quarter. Sei Investments Co. now owns 224,715 shares of the company's stock valued at $5,438,000 after purchasing an additional 206,529 shares during the last quarter. 73.46% of the stock is owned by institutional investors.

About Unity Software

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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