Unity Software (NYSE:U) Earns “Buy” Rating from BTIG Research

Unity Software (NYSE:U)‘s stock had its “buy” rating reiterated by analysts at BTIG Research in a research report issued to clients and investors on Thursday, Marketbeat.com reports. They presently have a $60.00 target price on the stock, up from their prior target price of $53.00. BTIG Research‘s price target would indicate a potential upside of 16.38% from the company’s previous close.

A number of other equities analysts also recently issued reports on U. Deutsche Bank Aktiengesellschaft raised shares of Unity Software from a “hold” rating to a “buy” rating and lifted their price objective for the stock from $31.00 to $50.00 in a report on Friday, August 7th. Oppenheimer reiterated an “outperform” rating on shares of Unity Software in a research note on Thursday, October 8th. Wells Fargo & Company increased their target price on shares of Unity Software from $48.00 to $53.00 and gave the company an “overweight” rating in a report on Monday, October 12th. Benchmark raised shares of Unity Software from a “hold” rating to a “buy” rating and set a $50.00 price target on the stock in a research report on Friday, August 7th. Finally, Bank of America upgraded shares of Unity Software from a “neutral” rating to a “buy” rating and boosted their price target for the stock from $30.00 to $50.00 in a report on Friday, August 7th. Two equities research 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 stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $56.32.

Unity Software Stock Up 5.6%

U stock traded up $2.75 during mid-day trading on Thursday, reaching $51.55. 23,615,425 shares of the company traded hands, compared to its average volume of 8,798,267. The company has a quick ratio of 2.03, a current ratio of 2.03 and a debt-to-equity ratio of 0.55. The firm’s 50 day moving average price is $42.48 and its 200 day moving average price is $31.84. The stock has a market cap of $22.69 billion, a price-to-earnings ratio of -63.65, a P/E/G ratio of 1.69 and a beta of 2.08. 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 issued its quarterly earnings data on Thursday, November 5th. The company reported $0.44 EPS for the quarter, topping 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 firm had revenue of $622.09 million during the quarter, compared to the consensus estimate of $567.03 million. During the same period in the prior year, the business posted $0.20 earnings per share. The company’s quarterly revenue was up 32.2% compared to the same quarter last year. As a group, equities research analysts predict that Unity Software will post 0.55 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Rebecca Boyden sold 1,032 shares of the business’s stock in a transaction dated Tuesday, August 25th. The stock was 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 legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Matthew Bromberg sold 16,383 shares of Unity Software stock in a transaction dated 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 transaction, the chief executive officer owned 1,541,131 shares of the company’s stock, valued at $69,828,645.61. The trade was a 1.05% decrease in their position. 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 sold a total of 109,547 shares of company stock worth $4,884,202 in the last ninety days. Company insiders own 0.77% of the company’s stock.

Institutional Investors Weigh In On Unity Software

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Fortitude Family Office LLC grew its position in shares of Unity Software by 56.1% in the third quarter. Fortitude Family Office LLC now owns 840 shares of the company’s stock valued at $34,000 after purchasing an additional 302 shares in the last quarter. Provenance Wealth Advisors LLC bought a new stake in shares of Unity Software during the 3rd quarter valued at $37,000. Putney Financial Group LLC bought a new stake in shares of Unity Software during the 3rd quarter valued at $59,000. Reyes Financial Architecture Inc. purchased a new stake in Unity Software during the 3rd quarter worth about $62,000. Finally, Heritage Family Offices LLP purchased a new stake in Unity Software during the 3rd quarter worth about $75,000. Institutional investors own 73.46% of the company’s stock.

Key Stories Impacting Unity Software

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.