The Goldman Sachs Group Cuts Unity Software (NYSE:U) Price Target to $27.00

Unity Software (NYSE:U) had its target price reduced by The Goldman Sachs Group from $47.00 to $27.00 in a research report released on Thursday,Benzinga reports. The Goldman Sachs Group currently has a neutral rating on the stock.

Several other equities analysts have also recently issued reports on U. Morgan Stanley boosted their target price on Unity Software from $48.00 to $52.00 and gave the stock an “overweight” rating in a research report on Tuesday, January 13th. Wedbush dropped their price objective on Unity Software from $37.00 to $30.00 and set an “outperform” rating on the stock in a report on Thursday. Needham & Company LLC reiterated a “buy” rating and issued a $50.00 price objective on shares of Unity Software in a research report on Wednesday. Arete Research upgraded shares of Unity Software from a “neutral” rating to a “buy” rating and set a $48.00 target price on the stock in a research report on Monday, December 1st. Finally, UBS Group lowered their price target on shares of Unity Software from $46.00 to $32.00 and set a “neutral” rating on the stock in a research note on Tuesday, February 10th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $39.29.

Unity Software Stock Down 5.3%

Shares of Unity Software stock opened at $18.60 on Thursday. Unity Software has a one year low of $15.33 and a one year high of $52.15. The company has a market cap of $8.05 billion, a P/E ratio of -19.38, a PEG ratio of 17.01 and a beta of 2.04. The company has a debt-to-equity ratio of 0.52, a quick ratio of 2.78 and a current ratio of 1.84. The firm has a fifty day moving average of $40.18 and a two-hundred day moving average of $39.63.

Unity Software (NYSE:U) last issued its earnings results on Wednesday, February 11th. The company reported $0.24 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.04. The business had revenue of $503.09 million for the quarter, compared to the consensus estimate of $490.64 million. Unity Software had a negative net margin of 21.77% and a negative return on equity of 4.76%. The business’s quarterly revenue was up 10.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.30) earnings per share. On average, analysts forecast that Unity Software will post -1.25 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO Jarrod Yahes sold 34,719 shares of Unity Software stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $41.38, for a total transaction of $1,436,672.22. Following the completion of the transaction, the chief financial officer owned 573,871 shares of the company’s stock, valued at $23,746,781.98. The trade was a 5.70% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, COO Alexander Blum sold 40,693 shares of the stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $41.38, for a total transaction of $1,683,876.34. Following the completion of the sale, the chief operating officer directly owned 563,118 shares in the company, valued at approximately $23,301,822.84. The trade was a 6.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 1,338,021 shares of company stock valued at $63,138,575. Company insiders own 3.61% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of U. Wellington Management Group LLP grew its holdings in Unity Software by 58.7% during the 3rd quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company’s stock valued at $729,284,000 after buying an additional 6,734,285 shares during the last quarter. Norges Bank purchased a new stake in shares of Unity Software in the second quarter valued at $151,221,000. Slate Path Capital LP boosted its stake in shares of Unity Software by 25.4% during the second quarter. Slate Path Capital LP now owns 20,016,952 shares of the company’s stock valued at $484,410,000 after acquiring an additional 4,048,484 shares during the last quarter. Massachusetts Financial Services Co. MA acquired a new stake in shares of Unity Software during the third quarter valued at $106,233,000. Finally, Duquesne Family Office LLC purchased a new stake in Unity Software during the 2nd quarter worth about $42,932,000. 73.46% of the stock is currently owned by institutional investors and hedge funds.

More Unity Software News

Here are the key news stories impacting Unity Software this week:

• Positive Sentiment: Q4 beat and improving profitability — Unity reported $503M revenue and beat EPS estimates; management highlighted record-ish free cash flow and margin progress, a direct counterpoint to the sell-off. U’s Q4 Earnings & Revenues Surpass Estimates
• Positive Sentiment: Vector momentum — management and bullish coverage point to strong ad/Vector growth (large January YoY gains and management targeting ~ $1B annualized run-rate by end-2026), which supports medium-term revenue and margin upside. Unity: A Meltdown Worth Buying
• Neutral Sentiment: Analyst responses mixed — many firms cut price targets to reflect near-term headwinds but some maintain Buy/Outperform ratings, leaving a wide spread between market price and some analyst targets. Unity Software Analysts Slash Their Forecasts After Q4 Results
• Neutral Sentiment: Technical/contrarian case — several pieces note the stock is deeply oversold and that the sell-off may have priced in worst-case scenarios, creating a potential buying opportunity for longer-term investors. Down 49% in 4 Weeks, Here’s Why You Should You Buy the Dip
• Negative Sentiment: Weak near-term guidance — management guided Q1 revenue $480–$490M, below consensus, triggering the sharp sell-off as the company intentionally winds down lower-margin legacy ad assets to accelerate migration to Vector. What’s Going On With Unity Stock Friday?
• Negative Sentiment: Market reaction and downgraded sentiment — the guidance miss and strategy pivot prompted steep intraday declines, multiple price-target cuts and at least one analyst downgrade, increasing near-term volatility and downside risk. Unity Software (U) Stock Tumbles 26% After Revenue Forecast Misses Mark

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.