Wall Street Zen Upgrades Unity Software (NYSE:U) to Buy

Unity Software (NYSE:U) was upgraded by equities researchers at Wall Street Zen from a “hold” rating to a “buy” rating in a note issued to investors on Sunday.

Several other analysts have also recently weighed in on the company. Zacks Research downgraded shares of Unity Software from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, August 13th. Arete Research upgraded shares of Unity Software to a “hold” rating in a report on Thursday, October 16th. Morgan Stanley upped their target price on shares of Unity Software from $40.00 to $44.00 and gave the company an “overweight” rating in a research report on Monday, October 20th. The Goldman Sachs Group initiated coverage on Unity Software in a research report on Wednesday, October 15th. They issued a “neutral” rating and a $38.00 price target on the stock. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Unity Software in a report on Wednesday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $38.52.

Unity Software Stock Performance

Shares of Unity Software stock opened at $36.65 on Friday. The company has a debt-to-equity ratio of 0.70, a current ratio of 2.78 and a quick ratio of 2.78. The firm has a 50 day simple moving average of $39.76 and a 200 day simple moving average of $33.04. Unity Software has a fifty-two week low of $15.33 and a fifty-two week high of $46.94. The firm has a market cap of $15.68 billion, a P/E ratio of -34.91 and a beta of 2.38.

Unity Software (NYSE:U) last announced its quarterly earnings data on Wednesday, November 5th. The company reported $0.20 EPS for the quarter, beating analysts’ consensus estimates of $0.17 by $0.03. The firm had revenue of $470.62 million for the quarter, compared to analyst estimates of $452.87 million. Unity Software had a negative return on equity of 9.45% and a negative net margin of 24.15%.The business’s quarterly revenue was up 5.4% compared to the same quarter last year. During the same period last year, the company earned ($0.31) EPS. Unity Software has set its Q4 2025 guidance at EPS. Sell-side analysts predict that Unity Software will post -1.25 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Jarrod Yahes sold 14,914 shares of the business’s stock in a transaction on Monday, November 10th. The shares were sold at an average price of $42.75, for a total value of $637,573.50. Following the sale, the chief financial officer directly owned 608,590 shares of the company’s stock, valued at approximately $26,017,222.50. The trade was a 2.39% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CAO Mark Barrysmith sold 802 shares of the company’s stock in a transaction on Thursday, October 16th. The stock was sold at an average price of $36.22, for a total transaction of $29,048.44. Following the completion of the transaction, the chief accounting officer directly owned 452,986 shares of the company’s stock, valued at approximately $16,407,152.92. The trade was a 0.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 2,440,899 shares of company stock worth $103,666,058. Corporate insiders own 3.61% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in U. Vanguard Group Inc. increased its stake in Unity Software by 2.8% in the 3rd quarter. Vanguard Group Inc. now owns 34,556,611 shares of the company’s stock valued at $1,383,647,000 after buying an additional 930,293 shares during the last quarter. Slate Path Capital LP grew its holdings in shares of Unity Software by 25.4% in the 2nd 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 in the last quarter. Wellington Management Group LLP increased its position in shares of Unity Software by 58.7% in the third quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company’s stock valued at $729,284,000 after acquiring an additional 6,734,285 shares during the last quarter. Atreides Management LP raised its holdings 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 acquiring an additional 5,607,572 shares in the last quarter. Finally, Norges Bank bought a new stake in Unity Software during the second quarter worth about $151,221,000. 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.