Unity Software (NYSE:U) Stock Crosses Above 50-Day Moving Average – Should You Sell?

Unity Software Inc. (NYSE:U) shares passed above its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $42.23 and traded as high as $43.03. Unity Software shares last traded at $42.2940, with a volume of 28,307,089 shares trading hands.

Analyst Upgrades and Downgrades

Several research firms have issued reports on U. Zacks Research downgraded shares of Unity Software from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 6th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Unity Software in a research report on Monday. BTIG Research boosted their target price on Unity Software from $51.00 to $53.00 and gave the company a “buy” rating in a report on Friday, October 9th. HSBC raised Unity Software from a “hold” rating to a “buy” rating and set a $47.10 target price for the company in a research report on Friday, August 7th. Finally, Morgan Stanley raised their price target on Unity Software from $50.00 to $55.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 13th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $48.86.

Unity Software Stock Up 4.5%

The firm has a market cap of $18.61 billion, a price-to-earnings ratio of -31.10, a P/E/G ratio of 1.76 and a beta of 2.08. The firm’s 50 day moving average price is $42.23 and its two-hundred day moving average price is $31.76. The company has a debt-to-equity ratio of 0.55, a current ratio of 2.03 and a quick ratio of 2.03.

Unity Software (NYSE:U) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.28 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.11) by $0.39. The firm had revenue of $546.47 million for the quarter, compared to analyst estimates of $514.72 million. Unity Software had a positive return on equity of 4.64% and a negative net margin of 28.97%. The business’s revenue was up 24.0% on a year-over-year basis. During the same quarter last year, the company posted $0.18 earnings per share. As a group, sell-side analysts forecast that Unity Software Inc. will post 0.55 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Matthew S. Bromberg sold 16,383 shares of the company’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $45.31, for a total transaction of $742,313.73. Following the completion of the sale, the chief executive officer owned 1,541,131 shares in the company, valued at $69,828,645.61. This represents a 1.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Alexander Blum sold 43,556 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $43.51, for a total value of $1,895,121.56. Following the sale, the chief operating officer directly owned 661,855 shares of the company’s stock, valued at approximately $28,797,311.05. This represents a 6.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 109,547 shares of company stock valued at $4,884,202 over the last 90 days. Insiders own 0.77% of the company’s stock.

Hedge Funds Weigh In On Unity Software

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Fortitude Family Office LLC boosted its position in shares of Unity Software by 56.1% during the 3rd quarter. Fortitude Family Office LLC now owns 840 shares of the company’s stock worth $34,000 after purchasing an additional 302 shares in the last quarter. Provenance Wealth Advisors LLC acquired a new position in shares of Unity Software during the 3rd quarter worth $37,000. Summit Securities Group LLC purchased a new position in shares of Unity Software in the 1st quarter valued at about $54,000. Global Retirement Partners LLC purchased a new position in shares of Unity Software in the 2nd quarter valued at about $56,000. Finally, Pacer Advisors Inc. increased its holdings in shares of Unity Software by 59.5% in the 1st quarter. Pacer Advisors Inc. now owns 2,626 shares of the company’s stock valued at $58,000 after purchasing an additional 980 shares in the last quarter. 73.46% of the stock is currently owned by hedge funds and other institutional investors.

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.