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

Unity Software (NYSE:U) had its price objective decreased by research analysts at Wedbush from $37.00 to $30.00 in a research report issued on Thursday,Benzinga reports. The brokerage currently has an “outperform” rating on the stock. Wedbush’s target price suggests a potential upside of 47.97% from the company’s previous close.

A number of other research analysts also recently issued reports on the company. Macquarie Infrastructure upgraded Unity Software from a “neutral” rating to an “outperform” rating and boosted their price target for the company from $33.00 to $50.00 in a report on Friday, November 7th. Piper Sandler raised shares of Unity Software from a “neutral” rating to an “overweight” rating and boosted their price objective for the company from $43.00 to $59.00 in a research report on Thursday, December 11th. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Unity Software in a research report on Wednesday, October 22nd. They issued a “hold” rating and a $39.00 target price for the company. Wells Fargo & Company decreased their target price on Unity Software from $54.00 to $38.00 and set an “overweight” rating for the company in a research report on Thursday. Finally, Morgan Stanley upped their price target on Unity Software from $48.00 to $52.00 and gave the stock an “overweight” rating in a research note on Tuesday, January 13th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $40.74.

Unity Software Trading Down 5.3%

Shares of NYSE U traded down $1.14 during trading on Thursday, reaching $20.28. The company had a trading volume of 13,671,587 shares, compared to its average volume of 18,696,662. The stock has a market cap of $8.68 billion, a P/E ratio of -19.30, a PEG 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 fifty day moving average price is $41.22 and its 200-day moving average price 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 (NYSE:U) last announced its quarterly earnings results on Wednesday, February 11th. The company reported $0.24 EPS for the quarter, topping analysts’ consensus estimates of $0.20 by $0.04. Unity Software had a negative return on equity of 9.45% and a negative net margin of 24.15%.The business had revenue of $503.09 million for the quarter, compared to analysts’ expectations of $490.64 million. During the same period in the previous year, the firm earned ($0.30) EPS. The business’s quarterly revenue was up 10.1% on a year-over-year basis. As a group, research analysts expect that Unity Software will post -1.25 earnings per share for the current year.

Insider Transactions at Unity Software

In related news, Director Tomer Bar-Zeev sold 50,000 shares of the company’s stock in a transaction on Friday, December 12th. The shares were sold at an average price of $47.00, for a total value of $2,350,000.00. Following the completion of the transaction, the director owned 873,146 shares of the company’s stock, valued at approximately $41,037,862. This represents a 5.42% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director David Helgason sold 8,347 shares of the stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $49.16, for a total value of $410,338.52. Following the sale, the director owned 7,635 shares of the company’s stock, valued at $375,336.60. This represents a 52.23% 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 three months. 3.61% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Unity Software

A number of institutional investors have recently made changes to their positions in U. Wellington Management Group LLP increased its position 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 worth $729,284,000 after purchasing an additional 6,734,285 shares during the last quarter. Norges Bank bought a new stake in Unity Software in the second quarter valued at about $151,221,000. Slate Path Capital LP raised its holdings in shares of Unity Software by 25.4% in the second quarter. Slate Path Capital LP now owns 20,016,952 shares of the company’s stock valued at $484,410,000 after purchasing an additional 4,048,484 shares during the last quarter. Massachusetts Financial Services Co. MA acquired a new stake in Unity Software in the 3rd quarter valued at $106,233,000. Finally, Duquesne Family Office LLC acquired a new position in shares of Unity Software during the 2nd quarter worth about $42,932,000. 73.46% of the stock is owned by institutional investors and hedge funds.

More Unity Software News

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

• Positive Sentiment: Q4 beat and operational progress — Unity reported revenue of $503.1M and EPS of $0.24, and management highlighted strong Vector/Create momentum and improving cash generation. BusinessWire: Q4 Results
• Positive Sentiment: Oppenheimer upgraded Unity to Outperform, citing resilience and upside from AI-related products — a vote of confidence from a major shop. Oppenheimer Upgrade
• Positive Sentiment: Needham reaffirmed its Buy rating with a $50 price target, signaling some analysts still see sizable upside vs. current levels. Needham Reaffirmation (Benzinga)
• Neutral Sentiment: UBS cut its price target to $32 and moved to Neutral — a reduction in near-term expectations but not an outright sell call. UBS Lowers Target
• Neutral Sentiment: BTIG trimmed its target from $60 to $41 while keeping a Buy rating — reflects lower near-term forecasts but continued conviction in longer-term upside. BTIG Target Cut
• Neutral Sentiment: Management is intentionally winding down legacy, low‑margin ad business (IronSource) to accelerate migration to Vector (AI-powered products). That strategy can improve long-term margins but creates temporary revenue drag. MarketWatch: AI / Transition
• Negative Sentiment: Guidance miss and demand concerns — Unity’s Q1 revenue guide (480–490M) fell short of Street estimates, triggering a large sell-off on fears of weakening demand. Reuters: Downbeat Forecast
• Negative Sentiment: Market reaction amplified by AI displacement concerns and analyst notes that the near-term revenue hit could last until customers fully migrate — multiple outlets flagged the plunge as driven more by outlook and AI fears than the quarter’s headline beat. Seeking Alpha: Guidance Reaction
• Negative Sentiment: Heavy intraday selling and volatility — coverage notes a ~30% intraday drop and very high trading volume as investors delever and reprice expectations. Yahoo Finance: Shares Drop

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.