Unity Software (NYSE:U) Price Target Raised to $55.00 at Piper Sandler

Unity Software (NYSE:U) had its price target boosted by Piper Sandler from $45.00 to $55.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has an “overweight” rating on the stock. Piper Sandler’s price objective would suggest a potential upside of 30.72% from the company’s previous close.

A number of other equities research analysts also recently commented on U. Barclays lifted their target price on Unity Software from $28.00 to $33.00 and gave the stock an “equal weight” rating in a report on Friday, May 8th. Benchmark raised shares of Unity Software from a “hold” rating to a “buy” rating and set a $50.00 price target for the company in a research report on Friday. Bank of America upgraded shares of Unity Software from a “neutral” rating to a “buy” rating and lifted their price objective for the company from $30.00 to $50.00 in a research note on Friday. HSBC raised shares of Unity Software from a “hold” rating to a “buy” rating and set a $47.10 target price for the company in a report on Friday. Finally, Zacks Research upgraded Unity Software from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 13th. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Unity Software currently has an average rating of “Moderate Buy” and an average price target of $44.74.

Unity Software Stock Performance

Unity Software stock traded up $1.26 during trading hours on Friday, hitting $42.07. 11,807,245 shares of the stock traded hands, compared to its average volume of 13,535,636. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.95 and a quick ratio of 1.95. The firm’s 50 day moving average price is $29.89 and its 200-day moving average price is $26.57. The stock has a market capitalization of $18.37 billion, a price-to-earnings ratio of -26.80, a P/E/G ratio of 4.20 and a beta of 2.04. Unity Software has a 1 year low of $16.78 and a 1 year high of $52.15.

Insider Transactions at Unity Software

In other news, CAO Mark Barrysmith sold 13,247 shares of the company’s stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $27.18, for a total transaction of $360,053.46. Following the completion of the transaction, the chief accounting officer directly owned 370,654 shares of the company’s stock, valued at $10,074,375.72. This represents a 3.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jarrod Yahes sold 24,021 shares of the company’s stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $27.18, for a total value of $652,890.78. Following the transaction, the chief financial officer directly owned 704,360 shares of the company’s stock, valued at approximately $19,144,504.80. The trade was a 3.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 198,321 shares of company stock worth $5,390,783 over the last quarter. Company insiders own 0.77% of the company’s stock.

Institutional Trading of Unity Software

Several institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its stake in shares of Unity Software by 2.9% in the fourth quarter. Vanguard Group Inc. now owns 35,553,296 shares of the company’s stock worth $1,570,389,000 after acquiring an additional 996,685 shares during the last quarter. Wellington Management Group LLP raised its stake in Unity Software by 58.7% in the 3rd quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company’s stock valued at $729,284,000 after purchasing an additional 6,734,285 shares during the last quarter. Geode Capital Management LLC lifted its holdings in Unity Software by 5.9% in the 4th quarter. Geode Capital Management LLC now owns 5,852,047 shares of the company’s stock valued at $258,547,000 after purchasing an additional 328,595 shares in the last quarter. Norges Bank purchased a new position in Unity Software in the 4th quarter valued at $230,285,000. Finally, Ameriprise Financial Inc. boosted its stake in Unity Software by 37.8% during the 2nd quarter. Ameriprise Financial Inc. now owns 4,628,328 shares of the company’s stock worth $112,006,000 after purchasing an additional 1,270,798 shares during the last quarter. Institutional investors and hedge funds own 73.46% of the company’s stock.

Key Headlines Impacting Unity Software

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 24% year over year, and adjusted earnings of $0.28 per share versus expectations near $0.24–$0.25. Management also highlighted record free cash flow and accelerated progress toward GAAP profitability. Unity Software Q2 Earnings and Revenues Top Estimates, Rise Y/Y
• Positive Sentiment: Forward guidance was stronger than anticipated. Unity forecast third-quarter strategic revenue of $540 million to $550 million, above the roughly $533.8 million consensus estimate, alongside a projected 33% adjusted EBITDA margin. The company said GAAP profitability could arrive as soon as the third quarter of 2026. Unity forecasts Q3 strategic revenue of $540M-$550M
• Positive Sentiment: Vector advertising momentum is driving optimism. Analysts and management pointed to accelerating growth in the Vector AI-powered advertising platform, Unity 7 integration, runtime data opportunities, margin expansion and a simplified product portfolio. Bank of America said the growth runway could remain sustainable through the end of 2027. U Q2 Earnings Call Highlights Vector AI Acceleration
• Positive Sentiment: Analyst sentiment improved sharply. Bank of America, Deutsche Bank, Benchmark and HSBC upgraded Unity to buy, while Needham, Wells Fargo, Oppenheimer, Citizens JMP and BTIG raised price targets, with targets reaching as high as $54. Analysts Boost Forecasts on Unity After Q2 Results
• Neutral Sentiment: Despite the improved outlook, Unity remained GAAP-unprofitable in the reported quarter, and its valuation and execution risks remain important considerations after the sharp rally.

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.