Unity Software (NYSE:U) Rating Increased to Buy at Bank of America

Bank of America upgraded shares of Unity Software (NYSE:U) from a neutral rating to a buy rating in a research note published on Friday morning, MarketBeat.com reports. They currently have $50.00 price target on the stock, up from their previous price target of $30.00.

Other equities research analysts have also recently issued research reports about the stock. Citigroup lowered their price objective on shares of Unity Software from $43.00 to $40.00 and set a “buy” rating for the company in a research report on Thursday, April 30th. Barclays increased their price target on shares of Unity Software from $28.00 to $33.00 and gave the company an “equal weight” rating in a research note on Friday, May 8th. Deutsche Bank Aktiengesellschaft upgraded shares of Unity Software from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $31.00 to $50.00 in a research report on Friday. Raymond James Financial started coverage on Unity Software in a report on Monday, June 29th. They set a “market perform” rating on the stock. Finally, Weiss Ratings upgraded Unity Software from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday. Two research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $44.74.

Unity Software Stock Performance

Unity Software stock opened at $43.09 on Friday. The stock has a 50-day simple moving average of $30.15 and a 200 day simple moving average of $26.69. The stock has a market capitalization of $18.81 billion, a price-to-earnings ratio of -31.69, a P/E/G ratio of 4.83 and a beta of 2.04. 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 12-month low of $16.78 and a 12-month high of $52.15.

Insider Buying and Selling at Unity Software

In related news, SVP Rebecca Berenice Boyden sold 952 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $27.20, for a total value of $25,894.40. Following the transaction, the senior vice president directly owned 309,445 shares in the company, valued at $8,416,904. This represents a 0.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 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 firm’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $27.18, for a total transaction of $652,890.78. Following the completion of the transaction, the chief financial officer directly owned 704,360 shares in the company, valued at approximately $19,144,504.80. The trade was a 3.30% 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 sold a total of 198,321 shares of company stock valued at $5,390,783 over the last 90 days. Company insiders own 0.77% of the company’s stock.

Institutional Investors Weigh In On Unity Software

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. REAP Financial Group LLC acquired a new position in Unity Software in the fourth quarter valued at about $28,000. Larson Financial Group LLC grew its position in shares of Unity Software by 88.1% during the 3rd 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 period. V Square Quantitative Management LLC bought a new stake in shares of Unity Software in the 4th quarter valued at about $30,000. IFP Advisors Inc bought a new stake in shares of Unity Software in the 3rd quarter valued at about $33,000. Finally, International Assets Investment Management LLC acquired a new stake in shares of Unity Software in the 4th quarter valued at approximately $36,000. Institutional investors own 73.46% of the company’s stock.

More 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.

About Unity Software

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.