Bank of America Forecasts Strong Price Appreciation for Unity Software (NYSE:U) Stock

Unity Software (NYSE:U) had its price objective increased by Bank of America from $19.00 to $21.00 in a research note issued on Friday,Benzinga reports. The firm currently has a “neutral” rating on the stock. Bank of America‘s price target would suggest a potential upside of 11.63% from the stock’s previous close.

Several other brokerages have also weighed in on U. Needham & Company LLC reissued a “buy” rating and issued a $35.00 price objective on shares of Unity Software in a report on Friday. Benchmark reaffirmed a “hold” rating on shares of Unity Software in a report on Monday, February 2nd. UBS Group decreased their target price on Unity Software from $46.00 to $32.00 and set a “neutral” rating for the company in a research report on Tuesday, February 10th. Freedom Capital upgraded Unity Software to a “strong-buy” rating in a report on Thursday, January 15th. Finally, BTIG Research reduced their price objective on Unity Software from $41.00 to $39.00 and set a “buy” rating on the stock in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $38.46.

Unity Software Stock Up 9.8%

U stock traded up $1.68 during mid-day trading on Friday, hitting $18.81. 18,674,807 shares of the company were exchanged, compared to its average volume of 17,469,637. The firm has a fifty day simple moving average of $24.77 and a 200 day simple moving average of $35.99. The company has a market capitalization of $8.15 billion, a PE ratio of -19.59, a price-to-earnings-growth ratio of 9.55 and a beta of 2.14. Unity Software has a twelve month low of $15.33 and a twelve month high of $52.15. The company has a current ratio of 1.84, a quick ratio of 1.84 and a debt-to-equity ratio of 0.52.

Unity Software (NYSE:U) last issued 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. Unity Software had a negative net margin of 21.77% and a negative return on equity of 4.76%. The business had revenue of $503.09 million for the quarter, compared to analyst estimates of $490.64 million. During the same quarter in the prior year, the business posted ($0.30) EPS. The company’s revenue for the quarter was up 10.1% on a year-over-year basis. On average, research analysts forecast that Unity Software will post -1.25 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Unity Software news, CAO Mark Barrysmith sold 10,578 shares of Unity Software stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total value of $191,144.46. Following the completion of the transaction, the chief accounting officer directly owned 383,901 shares in the company, valued at $6,937,091.07. The trade was a 2.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, COO Alexander Blum sold 10,164 shares of the company’s stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total value of $183,663.48. Following the transaction, the chief operating officer directly owned 550,966 shares of the company’s stock, valued at $9,955,955.62. This trade represents a 1.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 41,684 shares of company stock valued at $773,350 over the last quarter. Insiders own 3.61% of the company’s stock.

Hedge Funds Weigh In On Unity Software

Several hedge funds and other institutional investors have recently made changes to their positions in the business. GAMMA Investing LLC lifted its stake in shares of Unity Software by 10.8% in the 3rd quarter. GAMMA Investing LLC now owns 2,967 shares of the company’s stock worth $119,000 after acquiring an additional 288 shares during the period. Newbridge Financial Services Group Inc. increased its stake in shares of Unity Software by 12.9% during the third quarter. Newbridge Financial Services Group Inc. now owns 2,696 shares of the company’s stock valued at $108,000 after acquiring an additional 308 shares during the period. Xponance Inc. raised its holdings in Unity Software by 1.8% during the third quarter. Xponance Inc. now owns 18,291 shares of the company’s stock worth $732,000 after purchasing an additional 328 shares in the last quarter. Larson Financial Group LLC raised its holdings in Unity Software by 88.1% during the third quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock worth $29,000 after purchasing an additional 341 shares in the last quarter. Finally, Swiss Life Asset Management Ltd lifted its position in Unity Software by 3.1% in the fourth quarter. Swiss Life Asset Management Ltd now owns 14,861 shares of the company’s stock worth $656,000 after purchasing an additional 449 shares during the period. 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: Preliminary Q1 results beat guidance: Unity expects revenue of $505M–$508M (vs. prior guidance $480M–$490M) and Adjusted EBITDA of $130M–$135M (vs. $105M–$110M), signaling stronger growth and margin expansion driven by Unity V. Business Wire – Preliminary Q1 Results
• Positive Sentiment: Strategic overhaul — Unity said it will exit non‑strategic ad businesses to enhance growth and profitability, a move investors view as simplifying the business and improving margins. Proactive Investors – Strategic Overhaul
• Positive Sentiment: Multiple analyst supports and price targets: Citizens/JMP reaffirmed a Market Outperform with a $37 PT, Wedbush kept an Outperform at $30, Needham reaffirmed a $35 PT, and BTIG keeps a buy view (~$39 PT) — these notes give investors confidence in upside potential. Benzinga – Analyst Notes
• Neutral Sentiment: Media coverage and investor radar mentions (MarketWatch, MSN, Yahoo) are amplifying the beat and strategy change, which helps liquidity and visibility but doesn’t change fundamentals by itself. Yahoo Finance – Preliminary Results
• Neutral Sentiment: Macro headwinds: U.S. equity futures were weaker pre‑bell today, which can temper broader risk appetite even as Unity reports good company‑specific news. Yahoo Finance – Futures
• Negative Sentiment: Some analyst price-target trims: Wells Fargo lowered its PT from $38 to $29 (still an overweight) — a reminder some analysts remain cautious on valuation and execution risk. Benzinga – Wells Fargo Note
• Negative Sentiment: Technical and valuation context: U is still trading below its 50‑day ($24.77) and 200‑day ($35.99) SMAs and has a history of volatile swings; consensus still expects negative EPS this year, so meeting execution targets remains critical. (Background data provided by investor materials.)

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.