Unity Software (NYSE:U) Stock Crosses Above 50-Day Moving Average – Should You Sell?

Unity Software Inc. (NYSE:U)’s share price passed above its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $42.23 and traded as high as $43.03. Unity Software shares last traded at $42.2940, with a volume of 28,307,089 shares changing hands.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. Benchmark upgraded shares of Unity Software from a “hold” rating to a “buy” rating and set a $50.00 price target for the company in a research report on Friday, August 7th. Raymond James Financial upgraded Unity Software from a “market perform” rating to an “outperform” rating and set a $54.00 price target on the stock in a report on Thursday, October 8th. Morgan Stanley raised their price objective on Unity Software from $50.00 to $55.00 and gave the company an “overweight” rating in a research note on Tuesday, October 13th. Bank of America raised Unity Software from a “neutral” rating to a “buy” rating and raised their price objective for the company from $30.00 to $50.00 in a research note on Friday, August 7th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Unity Software in a report on Monday. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $48.86.

Unity Software Stock Up 4.5%

The firm has a market capitalization of $18.61 billion, a PE ratio of -31.10, a price-to-earnings-growth ratio of 1.76 and a beta of 2.08. The firm’s 50-day moving average is $42.23 and its 200 day moving average is $31.76. The company has a debt-to-equity ratio of 0.55, a quick ratio of 2.03 and a current ratio of 2.03.

Unity Software (NYSE:U) last released its earnings results on Thursday, August 6th. The company reported $0.28 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.11) by $0.39. Unity Software had a negative net margin of 28.97% and a positive return on equity of 4.64%. The business had revenue of $546.47 million for the quarter, compared to analysts’ expectations of $514.72 million. During the same period last year, the company earned $0.18 earnings per share. The company’s quarterly revenue was up 24.0% on a year-over-year basis. As a group, research analysts forecast that Unity Software Inc. will post 0.55 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Unity Software news, CEO Matthew Bromberg sold 16,383 shares of the stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $45.31, for a total value of $742,313.73. Following the sale, the chief executive officer directly owned 1,541,131 shares of the company’s stock, valued at $69,828,645.61. This trade represents a 1.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jarrod Yahes sold 26,017 shares of the business’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $45.31, for a total transaction of $1,178,830.27. Following the transaction, the chief financial officer directly owned 678,343 shares of the company’s stock, valued at approximately $30,735,721.33. This trade represents a 3.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 109,547 shares of company stock valued at $4,884,202 in the last 90 days. Corporate insiders own 0.77% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Atreides Management LP acquired a new stake in shares of Unity Software in the second quarter valued at approximately $292,826,000. Resolute Advisors LLC boosted its position in shares of Unity Software by 473.3% during the second quarter. Resolute Advisors LLC now owns 4,766,219 shares of the company’s stock worth $136,219,000 after buying an additional 3,934,840 shares during the period. Dimensional Fund Advisors LP boosted its position in shares of Unity Software by 52.8% during the first quarter. Dimensional Fund Advisors LP now owns 4,245,014 shares of the company’s stock worth $93,089,000 after buying an additional 1,465,962 shares during the period. Assenagon Asset Management S.A. boosted its position in shares of Unity Software by 9,886.8% during the third quarter. Assenagon Asset Management S.A. now owns 2,645,007 shares of the company’s stock worth $108,260,000 after buying an additional 2,618,522 shares during the period. Finally, Renaissance Technologies LLC bought a new position in Unity Software in the 1st quarter worth approximately $54,534,000. 73.46% of the stock is owned by institutional investors and hedge funds.

Unity Software Company Profile

Unity Software Inc develops software and services for creating, operating and monetizing interactive, real-time content. Its core product is the Unity engine, a development platform used to build video games and experiences for mobile devices, personal computers, consoles, augmented and virtual reality systems, and other platforms.

The company also provides tools and services that support the development and operation of interactive applications, including collaboration and cloud-based development tools, multiplayer and voice communication capabilities, analytics, advertising, and in-app monetization solutions.