Unity Software (NYSE:U) Upgraded to Buy at Benchmark

Benchmark upgraded shares of Unity Software (NYSE:U) from a hold rating to a buy rating in a research report released on Friday morning, MarketBeat reports. They currently have $50.00 target price on the stock.

Other equities research analysts have also issued reports about the stock. Wedbush increased their target price on shares of Unity Software from $32.00 to $36.00 and gave the stock an “outperform” rating in a report on Wednesday, July 22nd. Piper Sandler reaffirmed an “overweight” rating and set a $45.00 price target (up from $40.00) on shares of Unity Software in a report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft upgraded shares of Unity Software from a “hold” rating to a “buy” rating and upped their price target for the stock from $31.00 to $50.00 in a research report on Friday. Bank of America raised shares of Unity Software from a “neutral” rating to a “buy” rating and increased their price objective for the stock from $30.00 to $50.00 in a research note on Friday. Finally, Weiss Ratings raised shares of Unity Software from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Unity Software presently has an average rating of “Moderate Buy” and a consensus target price of $44.74.

Unity Software Stock Performance

Shares of U opened at $43.09 on Friday. The business has a 50-day simple moving average of $30.15 and a two-hundred day simple moving average of $26.69. The company has a quick ratio of 1.95, a current ratio of 1.95 and a debt-to-equity ratio of 0.56. Unity Software has a 52 week low of $16.78 and a 52 week high of $52.15. The stock has a market cap of $18.81 billion, a price-to-earnings ratio of -31.69, a PEG ratio of 4.83 and a beta of 2.04.

Insider Buying and Selling at Unity Software

In other news, 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 transaction of $652,890.78. Following the sale, the chief financial officer directly owned 704,360 shares of the company’s stock, valued at $19,144,504.80. This represents a 3.30% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Mark Barrysmith sold 13,247 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $27.18, for a total value of $360,053.46. Following the transaction, the chief accounting officer owned 370,654 shares of the company’s stock, valued at $10,074,375.72. This represents a 3.45% 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. Over the last ninety days, insiders sold 198,321 shares of company stock worth $5,390,783. Company insiders own 0.77% of the company’s stock.

Institutional Trading of Unity Software

Several hedge funds have recently made changes to their positions in the business. Newbridge Financial Services Group Inc. boosted its stake in shares of Unity Software by 12.9% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 2,696 shares of the company’s stock valued at $108,000 after purchasing an additional 308 shares during the last quarter. Larson Financial Group LLC raised its stake in Unity Software by 88.1% during the third quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock worth $29,000 after buying an additional 341 shares during the last quarter. Swiss Life Asset Management Ltd lifted its holdings in Unity Software by 3.1% in the fourth quarter. Swiss Life Asset Management Ltd now owns 14,861 shares of the company’s stock valued at $656,000 after buying an additional 449 shares during the period. Captrust Financial Advisors lifted its holdings in Unity Software by 2.1% in the second quarter. Captrust Financial Advisors now owns 22,330 shares of the company’s stock valued at $540,000 after buying an additional 462 shares during the period. Finally, Ritholtz Wealth Management boosted its position in Unity Software by 8.9% during the fourth quarter. Ritholtz Wealth Management now owns 5,732 shares of the company’s stock valued at $253,000 after acquiring an additional 468 shares during the last quarter. 73.46% of the stock is currently owned by hedge funds and other institutional investors.

Key Unity Software News

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 consensus estimates near $0.24-$0.25. Strategic Revenue growth and improved margins were key contributors. Unity Software Q2 Earnings and Revenues Top Estimates, Rise Y/Y
• Positive Sentiment: Upbeat forward outlook: Management forecast third-quarter revenue of $540 million to $550 million, above the roughly $533.8 million analyst consensus, alongside a projected 33% adjusted EBITDA margin. Management also indicated that GAAP profitability could arrive as early as the third quarter of 2026. Unity forecasts Q3 strategic revenue of $540M-$550M
• Positive Sentiment: Vector and Unity 7 support growth expectations: Analysts highlighted accelerating Vector AI advertising growth, Unity 7 integration, runtime-data monetization and portfolio simplification. Bank of America reportedly sees a sustainable Vector growth runway through the end of 2027. U Q2 Earnings Call Highlights Vector AI Acceleration
• Positive Sentiment: Broad analyst support: Bank of America and Deutsche Bank upgraded Unity to “buy” with $50 targets, while Benchmark and HSBC also moved to “buy.” Needham raised its target to $54, Piper Sandler to $55, and Wells Fargo, Oppenheimer and Citizens JMP also lifted their targets and maintained bullish ratings. Analysts Boost Forecasts on Unity After Q2 Results
• Neutral Sentiment: Unusually heavy call-option buying accompanied the earnings reaction, indicating increased bullish positioning but also the potential for elevated short-term volatility.
• Negative Sentiment: Despite improving margins and guidance, Unity remains unprofitable on a GAAP basis, and its elevated valuation and proximity to its 52-week high could leave the stock sensitive to any slowdown in Vector growth or disappointment in execution.

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.