Unity Software (NYSE:U) Upgraded to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Unity Software (NYSE:U) from a hold rating to a strong-buy rating in a research report report published on Thursday,Zacks reports.

Other equities analysts also recently issued reports about the stock. Deutsche Bank Aktiengesellschaft upgraded shares of Unity Software from a “hold” rating to a “buy” rating and upped their price target for the company from $31.00 to $50.00 in a research note on Friday, August 7th. Raymond James Financial reissued an “outperform” rating and issued a $60.00 price objective on shares of Unity Software in a report on Thursday. Needham & Company LLC boosted their price objective on shares of Unity Software from $54.00 to $70.00 and gave the company a “buy” rating in a report on Friday. Wall Street Zen upgraded shares of Unity Software from a “hold” rating to a “buy” rating in a research report on Monday, October 12th. Finally, Wedbush raised their target price on shares of Unity Software from $55.00 to $63.00 and gave the stock an “outperform” rating in a report on Friday. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $56.32.

Unity Software Stock Performance

NYSE:U traded up $2.75 during mid-day trading on Thursday, hitting $51.55. 23,615,425 shares of the stock were exchanged, compared to its average volume of 8,798,267. The stock has a market capitalization of $22.69 billion, a price-to-earnings ratio of -63.65, a price-to-earnings-growth ratio of 1.69 and a beta of 2.08. The firm’s 50-day simple moving average is $42.48 and its 200 day simple moving average is $31.84. 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 fifty-two week low of $16.78 and a fifty-two week high of $52.91.

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

Insider Buying and Selling

In other Unity Software news, SVP Rebecca Boyden sold 1,032 shares of the firm’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $45.32, for a total value of $46,770.24. Following the transaction, the senior vice president directly 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Matthew S. Bromberg sold 16,383 shares of the firm’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $45.31, for a total transaction of $742,313.73. Following the completion of the transaction, the chief executive officer directly owned 1,541,131 shares in the company, valued at approximately $69,828,645.61. This represents a 1.05% decrease in their ownership of the stock. 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. Insiders sold 109,547 shares of company stock worth $4,884,202 in the last ninety days. 0.77% of the stock is owned by company insiders.

Institutional Trading of Unity Software

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Eurizon Capital SGR S.p.A. lifted its stake in Unity Software by 332.8% during the third quarter. Eurizon Capital SGR S.p.A. now owns 11,119 shares of the company’s stock worth $452,000 after purchasing an additional 8,550 shares during the last quarter. Austin Wealth Management LLC bought a new position in shares of Unity Software in the 3rd quarter valued at $273,000. Maryland State Retirement & Pension System raised its holdings in shares of Unity Software by 24.0% during the 3rd quarter. Maryland State Retirement & Pension System now owns 22,313 shares of the company’s stock worth $913,000 after buying an additional 4,324 shares in the last quarter. Advisor Resource Council bought a new stake in shares of Unity Software during the 3rd quarter worth $218,000. Finally, Ritholtz Wealth Management lifted its position in shares of Unity Software by 88.8% during the 3rd quarter. Ritholtz Wealth Management now owns 14,902 shares of the company’s stock worth $610,000 after buying an additional 7,007 shares during the last quarter. Institutional investors own 73.46% of the company’s stock.

Unity Software News Roundup

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.