Unity Software (NYSE:U) Stock Price Target Raised at Needham & Company LLC

Unity Software (NYSE:U) had its price target hoisted by Needham & Company LLC from $54.00 to $70.00 in a report issued on Friday,Benzinga reports. They currently have a buy rating on the stock.

Other equities analysts have also recently issued reports about the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Unity Software in a research report on Monday. Zacks Research cut Unity Software from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 6th. Wells Fargo & Company raised their target price on Unity Software from $48.00 to $53.00 and gave the stock an “overweight” rating in a research note on Monday, October 12th. Bank of America upgraded Unity Software from a “neutral” rating to a “buy” rating and raised their target price for the stock from $30.00 to $50.00 in a research note on Friday, August 7th. Finally, Piper Sandler reaffirmed an “overweight” rating on shares of Unity Software in a report on Monday, October 5th. Two analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $56.32.

Unity Software Stock Performance

NYSE U traded up $2.75 during trading on Friday, hitting $51.55. 23,615,425 shares of the company’s stock traded hands, compared to its average volume of 8,798,267. The stock has a market capitalization of $22.69 billion, a price-to-earnings ratio of -63.65, a PEG ratio of 1.69 and a beta of 2.08. The company has a debt-to-equity ratio of 0.55, a quick ratio of 2.03 and a current ratio of 2.03. The business has a 50 day moving average of $42.48 and a 200-day moving average of $31.84. Unity Software has a 12-month low of $16.78 and a 12-month high of $52.91.

Unity Software (NYSE:U) last posted its quarterly earnings results on Thursday, November 5th. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.41. Unity Software had a negative net margin of 28.97% and a positive return on equity of 4.64%. The company had revenue of $622.09 million for the quarter, compared to analyst estimates of $567.03 million. During the same quarter in the previous year, the firm posted $0.20 earnings per share. The company’s quarterly revenue was up 32.2% compared to the same quarter last year. As a group, equities research analysts anticipate that Unity Software will post 0.55 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, COO Alexander Blum sold 43,556 shares of Unity Software stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $43.51, for a total transaction of $1,895,121.56. Following the completion of the sale, the chief operating officer owned 661,855 shares in the company, valued at approximately $28,797,311.05. This trade represents a 6.17% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Rebecca Boyden sold 1,032 shares of the business’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $45.32, for a total value of $46,770.24. Following the transaction, the senior vice president directly owned 308,413 shares of the company’s stock, valued at $13,977,277.16. The trade was a 0.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 109,547 shares of company stock worth $4,884,202 over the last three months. Corporate insiders own 0.77% of the company’s stock.

Institutional Investors Weigh In On Unity Software

A number of institutional investors and hedge funds have recently bought and sold shares of U. Eurizon Capital SGR S.p.A. grew its stake in Unity Software by 332.8% in the 3rd quarter. Eurizon Capital SGR S.p.A. now owns 11,119 shares of the company’s stock worth $452,000 after buying an additional 8,550 shares in the last quarter. Austin Wealth Management LLC bought a new position in Unity Software in the third quarter valued at $273,000. Maryland State Retirement & Pension System increased its stake in Unity Software by 24.0% in the third quarter. Maryland State Retirement & Pension System now owns 22,313 shares of the company’s stock valued at $913,000 after acquiring an additional 4,324 shares during the last quarter. Advisor Resource Council bought a new position in Unity Software in the third quarter valued at $218,000. Finally, Ritholtz Wealth Management raised its position in Unity Software by 88.8% during the third quarter. Ritholtz Wealth Management now owns 14,902 shares of the company’s stock valued at $610,000 after purchasing an additional 7,007 shares in the last quarter. 73.46% of the stock is owned by hedge funds and other institutional investors.

More Unity Software News

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

• Positive Sentiment: Q3 results beat expectations: Unity reported revenue of $622.1 million, up 32.2% year over year, and adjusted earnings of $0.44 per share. It also posted its first GAAP quarterly profit since its 2020 IPO, with net income of $122 million. Unity Q3 earnings beat estimates on Vector strength and margin gains
• Positive Sentiment: AI-driven advertising is gaining traction: Revenue from Vector, Unity’s AI-powered advertising platform, surged 126%, helping widen margins and bolstering the growth outlook. Unity Q3 earnings call highlights Vector growth and AI expansion
• Positive Sentiment: Outlook topped analyst expectations: Unity’s Q4 revenue guidance was well above consensus, with management anticipating 65%–67% growth in strategic revenue and an adjusted EBITDA margin of about 42%. Unity forecasts Q4 strategic revenue and margin
• Positive Sentiment: Analyst targets moved higher: Needham and Citizens JMP raised targets to $70; Oppenheimer and Wells Fargo raised theirs to $64, while Citigroup lifted its target to $59. Needham price-target update
• Neutral Sentiment: Takeover reports add uncertainty: Silver Lake and Saudi Arabia’s Public Investment Fund reportedly held discussions about acquiring Unity. Talks are described as early-stage, with no confirmed agreement or final terms. Silver Lake and PIF takeover approach report
• Negative Sentiment: Creator tools are a caveat: While advertising is growing rapidly, a report noted that Unity’s creator-tools business is slowing, which could temper the broader growth story if that weakness persists. Vector ads lift Unity to first GAAP profit

Unity Software Company Profile

Unity Software Inc develops software and services for creating, operating and monetizing interactive, real-time content. Its core product is the Unity engine, a development platform used to build video games and experiences for mobile devices, personal computers, consoles, augmented and virtual reality systems, and other platforms.

The company also provides tools and services that support the development and operation of interactive applications, including collaboration and cloud-based development tools, multiplayer and voice communication capabilities, analytics, advertising, and in-app monetization solutions.