Unity Software (NYSE:U) Shares Gap Up – What’s Next?

Shares of Unity Software Inc. (NYSE:U) gapped up before the market opened on Wednesday . The stock had previously closed at $35.87, but opened at $42.10. Unity Software shares last traded at $38.5850, with a volume of 9,853,247 shares.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Barclays lifted their price objective on Unity Software from $25.00 to $30.00 and gave the company an “equal weight” rating in a report on Thursday, August 7th. UBS Group upped their price objective on Unity Software from $35.00 to $40.00 and gave the stock a “neutral” rating in a report on Monday, October 20th. Arete Research raised Unity Software to a “hold” rating in a report on Thursday, October 16th. Jefferies Financial Group increased their price target on Unity Software from $29.00 to $35.00 and gave the company a “buy” rating in a research note on Wednesday, July 16th. Finally, The Goldman Sachs Group initiated coverage on shares of Unity Software in a research report on Wednesday, October 15th. They issued a “neutral” rating and a $38.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $34.10.

Unity Software Price Performance

The company has a debt-to-equity ratio of 0.70, a current ratio of 2.73 and a quick ratio of 2.73. The stock has a market capitalization of $16.92 billion, a price-to-earnings ratio of -37.82 and a beta of 2.37. The company’s 50-day simple moving average is $39.96 and its 200-day simple moving average is $31.88.

Unity Software (NYSE:U) last issued its quarterly earnings results on Wednesday, August 6th. The company reported ($0.26) EPS 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 company had revenue of $440.94 million during the quarter, compared to the consensus estimate of $425.18 million. During the same quarter in the previous year, the business posted ($0.32) EPS. The firm’s revenue for the quarter was down 1.9% on a year-over-year basis. Research analysts forecast that Unity Software Inc. will post -1.25 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, COO Alexander Blum sold 63,813 shares of the company’s stock in a transaction dated Wednesday, August 27th. The shares were sold at an average price of $39.41, for a total value of $2,514,870.33. Following the sale, the chief operating officer owned 603,811 shares in the company, valued at $23,796,191.51. This represents a 9.56% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director David Helgason sold 1,350,000 shares of the company’s stock in a transaction dated 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 in the company, valued at $272,763,456.39. This represents a 18.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 2,386,951 shares of company stock valued at $101,340,159 over the last quarter. 3.61% of the stock is currently owned by company insiders.

Institutional Trading of Unity Software

Institutional investors have recently modified their holdings of the business. GAMMA Investing LLC raised its position in shares of Unity Software by 10.8% during the 3rd quarter. GAMMA Investing LLC now owns 2,967 shares of the company’s stock valued at $119,000 after buying an additional 288 shares in the last quarter. Allworth Financial LP grew its position in Unity Software by 28.4% during the second quarter. Allworth Financial LP now owns 1,865 shares of the company’s stock valued at $45,000 after buying an additional 412 shares during the period. Farther Finance Advisors LLC lifted its holdings in shares of Unity Software by 4.4% in the second quarter. Farther Finance Advisors LLC now owns 10,766 shares of the company’s stock worth $261,000 after buying an additional 454 shares in the last quarter. Captrust Financial Advisors raised its stake in Unity Software by 2.1% during the second quarter. Captrust Financial Advisors now owns 22,330 shares of the company’s stock valued at $540,000 after purchasing an additional 462 shares in the last quarter. Finally, Stephens Inc. AR raised its stake in shares of Unity Software by 4.1% in the third quarter. Stephens Inc. AR now owns 11,826 shares of the company’s stock valued at $474,000 after acquiring an additional 471 shares during the period. 73.46% of the stock is currently owned by hedge funds and other institutional investors.

Unity Software Company Profile

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.