Unity Software (NYSE:U) Stock Rating Upgraded by Zacks Research

Unity Software (NYSE:U) was upgraded by investment analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Thursday, Zacks reports.

A number of other analysts have also weighed in on the company. Citigroup upped their target price on Unity Software from $48.00 to $59.00 and gave the stock a “buy” rating in a report on Friday. Benchmark upgraded Unity Software from a “hold” rating to a “buy” rating and set a $50.00 price target on the stock in a report on Friday, August 7th. Wells Fargo & Company boosted their price target on Unity Software from $53.00 to $64.00 and gave the stock an “overweight” rating in a research report on Friday. Wedbush boosted their price target on Unity Software from $55.00 to $63.00 and gave the stock an “outperform” rating in a research report on Friday. Finally, Morgan Stanley upped their price objective on Unity Software from $50.00 to $55.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 13th. Two analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Unity Software presently has an average rating of “Moderate Buy” and a consensus target price of $56.32.

Unity Software Stock Up 5.6%

NYSE:U traded up $2.75 during mid-day trading on Thursday, reaching $51.55. The company’s stock had a trading volume of 23,615,425 shares, compared to its average volume of 8,798,267. Unity Software has a 1 year low of $16.78 and a 1 year high of $52.91. The stock has a fifty day moving average of $42.48 and a 200-day moving average of $31.84. The firm has a market capitalization of $22.69 billion, a PE ratio of -63.65, a price-to-earnings-growth ratio of 1.69 and a beta of 2.08. The company has a quick ratio of 2.03, a current ratio of 2.03 and a debt-to-equity ratio of 0.55.

Unity Software (NYSE:U) last issued its earnings results on Thursday, November 5th. The company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.03 by $0.41. The company had revenue of $622.09 million for the quarter, compared to analysts’ expectations of $567.03 million. Unity Software had a negative net margin of 28.97% and a positive return on equity of 4.64%. The firm’s quarterly revenue was up 32.2% on a year-over-year basis. During the same period in the prior year, the business earned $0.20 EPS. Equities research analysts forecast that Unity Software will post 0.55 earnings per share for the current year.

Insider Activity at Unity Software

In other Unity Software news, CFO Jarrod Yahes sold 26,017 shares of the firm’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $45.31, for a total value of $1,178,830.27. Following the completion of the transaction, the chief financial officer 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Rebecca Boyden sold 1,032 shares of the firm’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $45.32, for a total value of $46,770.24. Following the completion of the transaction, the senior vice president owned 308,413 shares of the company’s stock, valued at $13,977,277.16. This trade represents a 0.33% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 109,547 shares of company stock valued at $4,884,202. Company insiders own 0.77% of the company’s stock.

Institutional Investors Weigh In On Unity Software

A number of institutional investors and hedge funds have recently modified their holdings of the company. Fortitude Family Office LLC boosted its position in Unity Software by 56.1% in the third quarter. Fortitude Family Office LLC now owns 840 shares of the company’s stock valued at $34,000 after buying an additional 302 shares during the last quarter. Provenance Wealth Advisors LLC purchased a new position in Unity Software during the 3rd quarter worth approximately $37,000. Summit Securities Group LLC purchased a new position in Unity Software during the 1st quarter worth approximately $54,000. Global Retirement Partners LLC acquired a new stake in Unity Software during the 2nd quarter valued at approximately $56,000. Finally, Versant Capital Management Inc lifted its stake in Unity Software by 37.6% during the 2nd quarter. Versant Capital Management Inc now owns 2,041 shares of the company’s stock valued at $58,000 after acquiring an additional 558 shares during the period. Institutional investors and hedge funds own 73.46% of the company’s stock.

Trending Headlines about Unity Software

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

• Positive Sentiment: Q3 results beat expectations: Unity reported revenue of $622.1 million, up 32.2% year over year, and adjusted earnings of $0.44 per share. It also posted its first GAAP quarterly profit since its 2020 IPO, with net income of $122 million. Unity Q3 earnings beat estimates on Vector strength and margin gains
• Positive Sentiment: AI-driven advertising is gaining traction: Revenue from Vector, Unity’s AI-powered advertising platform, surged 126%, helping widen margins and bolstering the growth outlook. Unity Q3 earnings call highlights Vector growth and AI expansion
• Positive Sentiment: Outlook topped analyst expectations: Unity’s Q4 revenue guidance was well above consensus, with management anticipating 65%–67% growth in strategic revenue and an adjusted EBITDA margin of about 42%. Unity forecasts Q4 strategic revenue and margin
• Positive Sentiment: Analyst targets moved higher: Needham and Citizens JMP raised targets to $70; Oppenheimer and Wells Fargo raised theirs to $64, while Citigroup lifted its target to $59. Needham price-target update
• Neutral Sentiment: Takeover reports add uncertainty: Silver Lake and Saudi Arabia’s Public Investment Fund reportedly held discussions about acquiring Unity. Talks are described as early-stage, with no confirmed agreement or final terms. Silver Lake and PIF takeover approach report
• Negative Sentiment: Creator tools are a caveat: While advertising is growing rapidly, a report noted that Unity’s creator-tools business is slowing, which could temper the broader growth story if that weakness persists. Vector ads lift Unity to first GAAP profit

About Unity Software

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.