BTIG Research Has Lowered Expectations for Unity Software (NYSE:U) Stock Price

Unity Software (NYSE:U) had its price objective dropped by BTIG Research from $60.00 to $41.00 in a report released on Thursday,Benzinga reports. The firm presently has a “buy” rating on the stock. BTIG Research’s price objective indicates a potential upside of 91.35% from the stock’s previous close.

Several other analysts have also recently commented on U. Jefferies Financial Group increased their target price on Unity Software from $49.00 to $55.00 and gave the stock a “buy” rating in a report on Monday, January 5th. Piper Sandler upgraded shares of Unity Software from a “neutral” rating to an “overweight” rating and upped their target price for the stock from $43.00 to $59.00 in a research report on Thursday, December 11th. Oppenheimer raised shares of Unity Software from a “market perform” rating to an “outperform” rating and set a $38.00 price target for the company in a report on Tuesday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Unity Software in a research report on Wednesday, January 21st. Finally, UBS Group lowered their target price on Unity Software from $46.00 to $32.00 and set a “neutral” rating for the company in a research note on Tuesday. Two analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $43.46.

Unity Software Price Performance

NYSE:U opened at $21.43 on Thursday. The company has a quick ratio of 2.78, a current ratio of 2.78 and a debt-to-equity ratio of 0.70. The firm has a market cap of $9.17 billion, a PE ratio of -20.41, a price-to-earnings-growth ratio of 30.46 and a beta of 2.04. Unity Software has a 12 month low of $15.33 and a 12 month high of $52.15. The company’s 50-day moving average price is $41.22 and its two-hundred day moving average price is $39.83.

Unity Software (NYSE:U) last posted its earnings results on Wednesday, February 11th. The company reported $0.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.20 by $0.04. The company had revenue of $503.09 million during the quarter, compared to analysts’ expectations of $490.64 million. Unity Software had a negative net margin of 24.15% and a negative return on equity of 9.45%. Unity Software’s quarterly revenue was up 10.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.30) earnings per share. On average, equities analysts anticipate that Unity Software will post -1.25 EPS for the current fiscal year.

Insider Buying and Selling at Unity Software

In other Unity Software news, Director David Helgason sold 8,347 shares of the company’s stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $49.16, for a total transaction of $410,338.52. Following the completion of the sale, the director directly owned 7,635 shares in the company, valued at $375,336.60. This represents a 52.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Alexander Blum sold 1,988 shares of the firm’s stock in a transaction dated Friday, November 28th. The shares were sold at an average price of $42.47, for a total value of $84,430.36. Following the completion of the sale, the chief operating officer directly owned 561,130 shares in the company, valued at $23,831,191.10. This trade represents a 0.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,338,021 shares of company stock worth $63,138,575 in the last three months. Company insiders own 3.61% of the company’s stock.

Institutional Trading of Unity Software

A number of institutional investors and hedge funds have recently bought and sold shares of U. Root Financial Partners LLC acquired a new position in Unity Software during the 3rd quarter worth about $27,000. Atlantic Union Bankshares Corp bought a new position in shares of Unity Software during the second quarter worth about $28,000. REAP Financial Group LLC acquired a new position in shares of Unity Software in the fourth quarter worth approximately $28,000. Larson Financial Group LLC boosted its holdings in Unity Software by 88.1% in the third quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock valued at $29,000 after acquiring an additional 341 shares during the last quarter. Finally, V Square Quantitative Management LLC acquired a new stake in Unity Software during the 4th quarter valued at approximately $30,000. 73.46% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Unity Software

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

• Positive Sentiment: Q4 beat on revenue and EPS with improving margins and cash generation — Unity reported $503.1M in revenue and $0.24 adj. EPS, topping estimates; management highlighted strong Vector and Create performance and positive free cash flow. Read More.
• Positive Sentiment: Vector product showing clear traction — management said Vector had mid‑teen sequential growth, January was its best month, and Vector is expected to scale toward a $1B run‑rate; this supports a higher‑quality revenue mix long term. Read More.
• Positive Sentiment: Analyst upgrade underscores AI upside — Oppenheimer upgraded Unity to Outperform and set a $38 PT, citing resilience from AI‑driven products. This suggests some sell‑side conviction in the transition. Read More.
• Neutral Sentiment: Corporate governance and market interest — Unity added Bernard Kim to its board and saw unusually large call option activity, both signals of investor attention but not immediate earnings impact. Read More. · Read More.
• Negative Sentiment: Weak Q1 guidance triggered the sell‑off — Unity guided Q1 revenue $480–$490M, below the ~$492M consensus, and adjusted EBITDA guidance was lighter; that guidance shortfall prompted a large, rapid drop in the stock on fears of slowing demand. Read More.
• Negative Sentiment: Analysts trim targets and voice caution — UBS cut its price target to $32 and moved to Neutral, reflecting near‑term risks from the product migration and revenue pause. That reduces near‑term analyst support. Read More.
• Negative Sentiment: Market narrative: AI and legacy advertising disruption — Several reports note investor concern that AI and the wind‑down of legacy IronSource ad revenue create a short‑term “air pocket” in top‑line growth, fueling momentum selling despite improving margins. Read More.

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.