Citigroup Lowers Unity Software (NYSE:U) Price Target to $43.00

Unity Software (NYSE:U) had its price target cut by equities research analysts at Citigroup from $52.00 to $43.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm presently has a “buy” rating on the stock. Citigroup’s price target indicates a potential upside of 122.99% from the stock’s previous close.

Several other equities analysts have also weighed in on U. BTIG Research reduced their price objective on Unity Software from $60.00 to $41.00 and set a “buy” rating on the stock in a research note on Thursday. UBS Group decreased their price objective on shares of Unity Software from $46.00 to $32.00 and set a “neutral” rating for the company in a research report on Tuesday. Barclays dropped their target price on Unity Software from $35.00 to $28.00 and set an “equal weight” rating on the stock in a research report on Thursday. Benchmark reissued a “hold” rating on shares of Unity Software in a report on Monday, February 2nd. Finally, Wedbush dropped their price objective on Unity Software from $37.00 to $30.00 and set an “outperform” rating on the stock in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $39.29.

Unity Software Trading Down 9.9%

Shares of U traded down $2.13 during mid-day trading on Thursday, hitting $19.28. The company had a trading volume of 28,091,885 shares, compared to its average volume of 19,298,330. The business’s 50-day simple moving average is $41.22 and its 200-day simple moving average is $39.83. The company has a quick ratio of 2.78, a current ratio of 2.78 and a debt-to-equity ratio of 0.70. Unity Software has a 1-year low of $15.33 and a 1-year high of $52.15. The stock has a market cap of $8.25 billion, a PE ratio of -18.37, a P/E/G ratio of 30.46 and a beta of 2.04.

Unity Software (NYSE:U) last issued its quarterly 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. Unity Software had a negative net margin of 24.15% and a negative return on equity of 9.45%. The firm had revenue of $503.09 million during the quarter, compared to analyst estimates of $490.64 million. During the same quarter in the prior year, the business posted ($0.30) earnings per share. Unity Software’s revenue for the quarter was up 10.1% compared to the same quarter last year. Sell-side analysts forecast that Unity Software will post -1.25 earnings per share for the current year.

Insider Transactions at Unity Software

In related news, CAO Mark Barrysmith sold 14,407 shares of the stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $50.01, for a total value of $720,494.07. Following the completion of the transaction, the chief accounting officer directly owned 394,479 shares of the company’s stock, valued at $19,727,894.79. This represents a 3.52% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Tomer Bar-Zeev sold 50,000 shares of the business’s stock in a transaction on Friday, December 12th. The stock was sold at an average price of $47.00, for a total value of $2,350,000.00. Following the transaction, the director owned 873,146 shares of the company’s stock, valued at $41,037,862. This trade represents a 5.42% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 1,338,021 shares of company stock worth $63,138,575 over the last 90 days. Corporate insiders own 3.61% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in Unity Software by 2.9% in the fourth quarter. Vanguard Group Inc. now owns 35,553,296 shares of the company’s stock worth $1,570,389,000 after buying an additional 996,685 shares during the last quarter. Slate Path Capital LP increased its position in Unity Software by 25.4% during the second quarter. Slate Path Capital LP now owns 20,016,952 shares of the company’s stock worth $484,410,000 after buying an additional 4,048,484 shares during the last quarter. Wellington Management Group LLP raised its holdings in Unity Software by 58.7% during the third quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company’s stock valued at $729,284,000 after buying an additional 6,734,285 shares in the last quarter. Norges Bank acquired a new stake in shares of Unity Software in the second quarter worth about $151,221,000. Finally, Geode Capital Management LLC increased its holdings in shares of Unity Software by 5.9% during the 4th quarter. Geode Capital Management LLC now owns 5,852,047 shares of the company’s stock valued at $258,547,000 after acquiring an additional 328,595 shares during the last quarter. 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 outperformance — Unity reported Q4 revenue of ~$503.1M and adjusted EPS of $0.24, beating consensus; management highlighted strong momentum in its Vector platform and a returning Create business, and the quarter showed improved profitability and stronger cash flow. Business Wire: Q4 Results
• Neutral Sentiment: Product transition context — Management is deliberately winding down a legacy, lower‑margin ad network (IronSource) to accelerate migration to its higher‑margin Vector/AI platform; this is strategic but creates a near‑term revenue “air pocket.” (See earnings call coverage). MarketBeat: Earnings Call Highlights
• Neutral Sentiment: Some analyst support remains — A few firms reaffirmed or upgraded ratings (e.g., Oppenheimer upgrade to Outperform, several houses still show upside vs. current price), signaling disagreement among analysts about near‑term pain vs. long‑term value. Oppenheimer Upgrade
• Negative Sentiment: Guidance miss — Unity guided Q1 revenue to $480M–$490M, below consensus (~$492M–$494M), which sparked fears of weakening demand and prompted heavy selling. Reuters: Downbeat Forecast
• Negative Sentiment: Widespread analyst cuts — Multiple firms slashed price targets (Goldman to $27, UBS to $32, Barclays to $28, others), reflecting lower near‑term visibility and amplifying the sell‑off. Benzinga: Analyst Cuts
• Negative Sentiment: Market reaction & technical selling — High volume trading and rapid de‑risking by investors turned guidance disappointment into a steep price decline; headlines emphasize “plummet”/“crash,” which can prolong volatility. MarketBeat: Trading Action

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.