Unity Software (NYSE:U) Rating Increased to Buy at Bank of America

Unity Software (NYSE:U) was upgraded by stock analysts at Bank of America from a “neutral” rating to a “buy” rating in a research report issued on Friday,Benzinga reports. The firm currently has a $50.00 price target on the stock, up from their previous price target of $30.00. Bank of America‘s price target would suggest a potential upside of 22.12% from the company’s current price.

Other equities research analysts have also recently issued research reports about the stock. Deutsche Bank Aktiengesellschaft upgraded shares of Unity Software from a “hold” rating to a “buy” rating and raised their target price for the stock from $31.00 to $50.00 in a report on Friday. Wedbush boosted their target price on shares of Unity Software from $32.00 to $36.00 and gave the company an “outperform” rating in a research note on Wednesday, July 22nd. BTIG Research raised their price target on Unity Software from $43.00 to $51.00 and gave the stock a “buy” rating in a research note on Thursday. Needham & Company LLC raised their price target on Unity Software from $35.00 to $40.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. Finally, Barclays lifted their price objective on Unity Software from $28.00 to $33.00 and gave the stock an “equal weight” rating in a report on Friday, May 8th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $41.16.

Unity Software Stock Performance

Shares of NYSE U opened at $40.94 on Friday. The firm’s 50-day moving average price is $29.89 and its 200-day moving average price is $26.57. Unity Software has a 52-week low of $16.78 and a 52-week high of $52.15. The company has a market cap of $17.87 billion, a PE ratio of -26.08, a PEG ratio of 4.20 and a beta of 2.04. The company has a quick ratio of 1.95, a current ratio of 1.95 and a debt-to-equity ratio of 0.56.

Insider Activity at Unity Software

In other Unity Software news, SVP Rebecca Berenice Boyden sold 952 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $27.20, for a total transaction of $25,894.40. Following the sale, the senior vice president owned 309,445 shares in the company, valued at approximately $8,416,904. This trade represents a 0.31% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Alexander Blum sold 19,009 shares of Unity Software stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $27.18, for a total transaction of $516,664.62. Following the transaction, the chief operating officer directly owned 730,069 shares in the company, valued at $19,843,275.42. This represents a 2.54% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 198,321 shares of company stock worth $5,390,783 in the last quarter. 0.77% of the stock is currently owned by insiders.

Institutional Trading of Unity Software

Institutional investors and hedge funds have recently modified their holdings of the company. REAP Financial Group LLC purchased a new position in shares of Unity Software during the 4th quarter valued at $28,000. Larson Financial Group LLC boosted its holdings in Unity Software by 88.1% in the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock worth $29,000 after buying an additional 341 shares during the period. V Square Quantitative Management LLC purchased a new stake in Unity Software in the 4th quarter worth $30,000. IFP Advisors Inc purchased a new stake in Unity Software in the 3rd quarter worth $33,000. Finally, International Assets Investment Management LLC bought a new stake in Unity Software during the fourth quarter valued at about $36,000. 73.46% of the stock is currently owned by institutional investors.

Unity Software News Summary

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

• Positive Sentiment: Q2 results exceeded expectations. Unity reported revenue of approximately $546.5 million, up about 24% year over year and ahead of the roughly $514 million consensus. Adjusted earnings were $0.28 per share, also above estimates near $0.24-$0.25 and a loss reported in the year-ago period. Unity Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Profitability and cash flow improved sharply. Management highlighted record free cash flow and indicated that GAAP profitability could arrive in the third quarter of 2026, earlier than previously expected. The results were described by the CEO as potentially Unity’s best quarter since becoming a public company. Unity Q2 2026 Earnings Call Highlights
• Positive Sentiment: Guidance topped analyst expectations. Unity forecast third-quarter revenue of $540 million to $550 million, above the approximately $533.8 million consensus, along with a 33% adjusted EBITDA margin. Management cited momentum in its Vector product and continued strength in Grow Solutions. Unity Forecasts Q3 Strategic Revenue and Margin
• Positive Sentiment: Analyst sentiment strengthened. BTIG Research raised its price target from $43 to $51 and maintained a Buy rating, suggesting additional potential upside based on improving growth and profitability. BTIG Research Price Target Update
• Neutral Sentiment: Options activity turned more bullish. Investors purchased 41,488 Unity call options, about 30% above typical daily call volume. This indicates increased trading interest but does not guarantee continued gains.

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.