Unity Software (NYSE:U) Price Target Raised to $54.00

Unity Software (NYSE:U) had its target price boosted by investment analysts at Jefferies Financial Group from $50.00 to $54.00 in a report released on Thursday, Benzinga reports. The brokerage presently has a “buy” rating on the stock. Jefferies Financial Group’s price objective suggests a potential upside of 17.83% from the stock’s previous close.

Several other equities research analysts have also recently commented on the company. BTIG Research boosted their target price on Unity Software from $43.00 to $51.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Deutsche Bank Aktiengesellschaft raised shares of Unity Software from a “hold” rating to a “buy” rating and raised their price target for the stock from $31.00 to $50.00 in a research note on Friday, August 7th. HSBC upgraded shares of Unity Software from a “hold” rating to a “buy” rating and set a $47.10 price objective on the stock in a report on Friday, August 7th. Weiss Ratings upgraded shares of Unity Software from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, August 4th. Finally, Zacks Research downgraded shares of Unity Software from a “strong-buy” rating to a “hold” rating in a research report on Tuesday. One analyst has rated the stock with a Strong Buy rating, eighteen 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, Unity Software presently has an average rating of “Moderate Buy” and a consensus price target of $45.55.

Unity Software Trading Up 0.9%

U traded up $0.39 during midday trading on Thursday, reaching $45.83. 12,286,845 shares of the company were exchanged, compared to its average volume of 12,829,080. 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 has a one year low of $16.78 and a one year high of $52.15. The stock has a market capitalization of $20.17 billion, a P/E ratio of -33.70, a PEG ratio of 1.97 and a beta of 2.11. The stock’s 50-day simple moving average is $42.41 and its 200 day simple moving average is $32.23.

Unity Software (NYSE:U) last posted its earnings results on Thursday, August 6th. The company reported $0.28 earnings per share 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 company had revenue of $546.47 million for the quarter, compared to analyst estimates of $514.72 million. During the same period last year, the business posted $0.18 earnings per share. The business’s revenue for the quarter was up 24.0% compared to the same quarter last year. As a group, analysts forecast that Unity Software will post 0.55 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, COO Alexander Blum sold 43,556 shares of the company’s stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $43.51, for a total transaction of $1,895,121.56. Following the sale, the chief operating officer owned 661,855 shares in the company, valued at $28,797,311.05. This represents a 6.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Bromberg sold 16,383 shares of the stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $45.31, for a total value of $742,313.73. Following the completion of the sale, the chief executive officer directly owned 1,541,131 shares of the company’s stock, valued at approximately $69,828,645.61. The trade was a 1.05% 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 109,547 shares of company stock worth $4,884,202 over the last 90 days. Company insiders own 0.77% of the company’s stock.

Institutional Trading of Unity Software

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Renaissance Technologies LLC bought a new stake in Unity Software during the first quarter worth about $54,534,000. Entropy Technologies LP acquired a new stake in Unity Software during the first quarter worth about $1,985,000. Corient Private Wealth LP increased its holdings in Unity Software by 194.1% in the 2nd quarter. Corient Private Wealth LP now owns 48,691 shares of the company’s stock valued at $1,392,000 after buying an additional 32,135 shares during the period. HB Wealth Management LLC increased its holdings in Unity Software by 10.8% in the 2nd quarter. HB Wealth Management LLC now owns 274,554 shares of the company’s stock valued at $7,847,000 after buying an additional 26,762 shares during the period. Finally, Susquehanna Fundamental Investments LLC raised its position in shares of Unity Software by 1,196.6% in the 2nd quarter. Susquehanna Fundamental Investments LLC now owns 150,611 shares of the company’s stock valued at $4,304,000 after buying an additional 138,995 shares in the last quarter. 73.46% of the stock is owned by institutional investors.

Key Stories Impacting Unity Software

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

• Positive Sentiment: Raymond James upgraded Unity Software from “market perform” to “outperform” and set a $54 price target, implying approximately 18% upside from recent levels. The firm cited Unity’s partnership with Google as a meaningful growth catalyst. Why Is Unity Software Stock Gaining Thursday?
• Positive Sentiment: Google and Unity plan to launch an AI-powered game-creation platform that allows users to build playable games from natural-language prompts without coding. The initial Playground platform is expected to connect with Google Play Games, while Unity Spark is planned as a later expansion for higher-fidelity 3D development. The initiative could broaden Unity’s total addressable market and funnel new creators into its professional engine ecosystem. Google, Unity launch platform to create video games from prompts
• Positive Sentiment: Investors are also encouraged by Unity’s recent operating momentum: quarterly revenue rose 24% year over year to $546.5 million, while adjusted earnings of $0.28 per share exceeded expectations. Using Google’s AI infrastructure may help Unity offer new capabilities without bearing the full cost of developing and operating large AI models.
• Neutral Sentiment: Unity CEO Matthew Bromberg said the companies want the platform to reach consoles and emphasized creating quality games rather than “AI slop.” The comments support the long-term vision, but commercial adoption, monetization and the timing of Unity Spark remain uncertain. Unity CEO Wants Google AI Gaming Platform To Reach Consoles
• Negative Sentiment: Zacks Research separately downgraded Unity from “strong-buy” to “hold,” creating a counterweight to Raymond James’ upgrade and highlighting continued valuation and execution risks.

Unity Software Company Profile

Unity Software Inc develops software and services for creating, operating and monetizing interactive, real-time 2D and 3D content. Its platform is widely used to build video games for mobile devices, personal computers, consoles and the web, as well as applications for industries such as automotive, architecture, engineering, construction, manufacturing and entertainment.

The company’s core offering is the Unity development platform, which includes tools for graphics, physics, animation, audio, scripting and cross-platform deployment.