Unity Software (NYSE:U) Reaches New 12-Month High – Still a Buy?

Unity Software Inc. (NYSE:U)’s stock price reached a new 52-week high on Thursday . The stock traded as high as $46.00 and last traded at $43.08, with a volume of 10561776 shares changing hands. The stock had previously closed at $45.50.

Wall Street Analyst Weigh In

U has been the subject of several analyst reports. Needham & Company LLC raised their target price on shares of Unity Software from $30.00 to $40.00 and gave the company a “buy” rating in a research note on Wednesday, August 6th. Wall Street Zen raised Unity Software from a “hold” rating to a “buy” rating in a report on Saturday, August 9th. Jefferies Financial Group raised their price target on Unity Software from $29.00 to $35.00 and gave the company a “buy” rating in a report on Wednesday, July 16th. BTIG Research downgraded Unity Software from a “neutral” rating to a “sell” rating and set a $25.00 price target for the company. in a report on Wednesday, July 23rd. Finally, Zacks Research downgraded Unity Software from a “strong-buy” rating to a “hold” rating in a report on Wednesday, August 13th. Two equities research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $31.20.

Unity Software Stock Down 5.3%

The company has a quick ratio of 2.73, a current ratio of 2.73 and a debt-to-equity ratio of 0.70. The company has a market cap of $18.20 billion, a price-to-earnings ratio of -40.65 and a beta of 2.33. The stock has a fifty day moving average price of $35.42 and a two-hundred day moving average price of $26.75.

Unity Software (NYSE:U) last posted its earnings results on Wednesday, August 6th. The company reported ($0.26) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.25) by ($0.01). Unity Software had a negative return on equity of 13.59% and a negative net margin of 24.38%.The firm had revenue of $440.94 million for the quarter, compared to analyst estimates of $425.18 million. During the same period in the prior year, the business posted ($0.32) EPS. The firm’s quarterly revenue was down 1.9% compared to the same quarter last year. As a group, sell-side analysts expect that Unity Software Inc. will post -1.25 EPS for the current year.

Insider Activity at Unity Software

In other news, Director David Helgason sold 1,350,000 shares of Unity Software stock in a transaction on Monday, September 8th. The stock was sold at an average price of $44.43, for a total transaction of $59,980,500.00. Following the completion of the sale, the director owned 6,139,173 shares of the company’s stock, valued at approximately $272,763,456.39. This trade represents a 18.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Jarrod Yahes sold 29,876 shares of Unity Software stock in a transaction on Monday, August 25th. The stock was sold at an average price of $39.32, for a total value of $1,174,724.32. Following the sale, the chief financial officer directly owned 638,504 shares of the company’s stock, valued at $25,105,977.28. This represents a 4.47% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 1,981,485 shares of company stock valued at $82,447,777. 3.61% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its position in Unity Software by 5.9% during the first quarter. Vanguard Group Inc. now owns 32,964,521 shares of the company’s stock worth $645,775,000 after purchasing an additional 1,841,486 shares during the period. Slate Path Capital LP lifted its position in Unity Software by 25.4% during the second quarter. Slate Path Capital LP now owns 20,016,952 shares of the company’s stock worth $484,410,000 after purchasing an additional 4,048,484 shares during the period. Atreides Management LP lifted its position in Unity Software by 146.7% during the first quarter. Atreides Management LP now owns 9,430,955 shares of the company’s stock worth $184,752,000 after purchasing an additional 5,607,572 shares during the period. Norges Bank bought a new stake in Unity Software during the second quarter worth about $151,221,000. Finally, Geode Capital Management LLC lifted its position in Unity Software by 0.7% during the second quarter. Geode Capital Management LLC now owns 5,064,703 shares of the company’s stock worth $122,587,000 after purchasing an additional 36,105 shares during the period. Institutional investors and hedge funds own 73.46% of the company’s stock.

About Unity Software

Unity Software Inc operates a real-time 3D development platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company offers its solutions directly through its online store and field sales operations in North America, Denmark, Finland, the United Kingdom, Germany, Japan, China, Singapore, and South Korea, as well as indirectly through independent distributors and resellers worldwide.