Wedbush Forecasts Strong Price Appreciation for Unity Software (NYSE:U) Stock

Key Points

• Wedbush raised its price target on Unity Software from $32 to $36 and kept an outperform rating, implying about 21% upside from the current share price.
• Other analysts have also been adjusting targets higher, and the stock now carries a Moderate Buy consensus with an average target price of $37.99.
• Unity shares recently traded around $29.71; despite insider selling and mixed valuations, institutional ownership remains high at 73.46%.

Unity Software (NYSE:U - Get Free Report) had its price objective hoisted by analysts at Wedbush from $32.00 to $36.00 in a research note issued on Wednesday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Wedbush's price objective indicates a potential upside of 21.16% from the company's current price.

U has been the subject of several other reports. UBS Group lifted their price objective on Unity Software from $26.00 to $28.00 and gave the stock a "neutral" rating in a report on Tuesday, May 5th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Unity Software in a research note on Friday. Morgan Stanley boosted their price objective 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. Barclays increased their price objective on shares of Unity Software from $28.00 to $33.00 and gave the company an "equal weight" rating in a research note on Friday, May 8th. Finally, Piper Sandler assumed coverage on shares of Unity Software in a research report on Tuesday, June 2nd. They set an "overweight" rating and a $40.00 target price for the company. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $37.99.

Unity Software Price Performance

Shares of NYSE:U opened at $29.71 on Wednesday. The firm has a market capitalization of $12.97 billion, a price-to-earnings ratio of -18.93, a price-to-earnings-growth ratio of 3.61 and a beta of 2.05. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.95 and a quick ratio of 1.95. The business's 50 day simple moving average is $28.50 and its 200-day simple moving average is $27.58. Unity Software has a 12 month low of $16.78 and a 12 month high of $52.15.

Insider Buying and Selling

In other news, CAO Mark Barrysmith sold 13,247 shares of the company's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $27.18, for a total value of $360,053.46. Following the sale, the chief accounting officer directly owned 370,654 shares in the company, valued at $10,074,375.72. This represents a 3.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Matthew S. Bromberg sold 138,993 shares of Unity Software stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $27.18, for a total value of $3,777,829.74. Following the sale, the chief executive officer owned 1,557,514 shares of the company's stock, valued at approximately $42,333,230.52. This represents a 8.19% decrease in their position. 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. Over the last 90 days, insiders sold 198,321 shares of company stock valued at $5,390,783. Company insiders own 0.77% of the company's stock.

Institutional Investors Weigh In On Unity Software

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

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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