Unity Software (NYSE:U) Stock Keeps “Outperform” Rating at Oppenheimer

Oppenheimer reissued their outperform rating on shares of Unity Software (NYSE:U) in a research note released on Friday morning,Benzinga reports. They currently have a $64.00 target price on the stock, up from their previous target price of $47.00.

A number of other research firms have also recently issued reports on U. UBS Group reiterated an “outperform” rating on shares of Unity Software in a report on Friday. Bank of America upgraded Unity Software from a “neutral” rating to a “buy” rating and boosted their price target for the company from $30.00 to $50.00 in a report on Friday, August 7th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Unity Software in a research report on Monday. Benchmark upgraded Unity Software from a “hold” rating to a “buy” rating and set a $50.00 price objective for the company in a report on Friday, August 7th. Finally, Piper Sandler reissued an “overweight” rating on shares of Unity Software in a research report on Monday, October 5th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $56.32.

Unity Software Stock Up 5.6%

Shares of U stock traded up $2.75 during trading hours on Friday, hitting $51.55. 23,615,425 shares of the company were exchanged, compared to its average volume of 8,798,267. The business has a 50 day moving average of $42.48 and a two-hundred day moving average of $31.84. The company has a current ratio of 2.03, a quick ratio of 2.03 and a debt-to-equity ratio of 0.55. Unity Software has a 52 week low of $16.78 and a 52 week high of $52.91. The company has a market capitalization of $22.69 billion, a PE ratio of -63.65, a PEG ratio of 1.69 and a beta of 2.08.

Unity Software (NYSE:U) last issued its quarterly earnings data on Thursday, November 5th. The company reported $0.44 EPS for the quarter, topping analysts’ consensus estimates of $0.03 by $0.41. The business had revenue of $622.09 million for the quarter, compared to analyst estimates 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 last year, the business posted $0.20 earnings per share. Analysts anticipate that Unity Software will post 0.55 earnings per share for the current fiscal year.

Insider Buying and Selling at Unity Software

In other Unity Software news, SVP Rebecca Boyden sold 1,032 shares of Unity Software stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $45.32, for a total value of $46,770.24. Following the sale, the senior vice president directly owned 308,413 shares in the company, valued at approximately $13,977,277.16. The trade was a 0.33% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through 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 dated Tuesday, August 25th. The stock was sold at an average price of $45.31, for a total transaction of $1,178,830.27. Following the sale, the chief financial officer directly owned 678,343 shares in the company, valued at $30,735,721.33. This trade represents a 3.69% decrease in their ownership of the stock. 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 have sold a total of 109,547 shares of company stock valued at $4,884,202 over the last quarter. 0.77% of the stock is currently owned by corporate insiders.

Institutional Trading of Unity Software

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Atreides Management LP bought a new stake in Unity Software during the second quarter worth about $292,826,000. Resolute Advisors LLC boosted its position in Unity Software by 473.3% during the second quarter. Resolute Advisors LLC now owns 4,766,219 shares of the company’s stock valued at $136,219,000 after purchasing an additional 3,934,840 shares during the last quarter. Assenagon Asset Management S.A. grew its stake in Unity Software by 9,886.8% in the third quarter. Assenagon Asset Management S.A. now owns 2,645,007 shares of the company’s stock valued at $108,260,000 after purchasing an additional 2,618,522 shares in the last quarter. Renaissance Technologies LLC bought a new position in Unity Software in the first quarter valued at approximately $54,534,000. Finally, Avala Global LP bought a new position in Unity Software in the second quarter valued at approximately $62,522,000. Institutional investors and hedge funds 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

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.