Unity Software (NYSE:U) Shares Gap Down – Time to Sell?

Unity Software Inc. (NYSE:U)’s share price gapped down before the market opened on Wednesday . The stock had previously closed at $25.87, but opened at $23.70. Unity Software shares last traded at $23.1720, with a volume of 4,956,939 shares trading hands.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on U shares. Barclays raised their price target on Unity Software from $30.00 to $35.00 and gave the company an “equal weight” rating in a report on Thursday, November 6th. Wedbush upped their price target on Unity Software from $50.00 to $55.00 and gave the stock an “outperform” rating in a research note on Tuesday, December 2nd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Unity Software in a report on Wednesday, January 21st. Freedom Capital raised Unity Software to a “strong-buy” rating in a research note on Thursday, January 15th. Finally, The Goldman Sachs Group raised their price target on Unity Software from $42.00 to $47.00 and gave the stock a “neutral” rating in a research note on Tuesday, January 13th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Unity Software has an average rating of “Moderate Buy” and an average target price of $45.27.

Unity Software Stock Down 6.7%

The stock’s 50-day moving average price is $43.39 and its 200-day moving average price is $40.24. The company has a current ratio of 2.78, a quick ratio of 2.78 and a debt-to-equity ratio of 0.70. The stock has a market cap of $10.33 billion, a price-to-earnings ratio of -23.04, a P/E/G ratio of 30.20 and a beta of 2.04.

Unity Software (NYSE:U) last posted its quarterly earnings results on Wednesday, November 5th. The company reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.17 by $0.03. Unity Software had a negative net margin of 24.15% and a negative return on equity of 9.45%. The firm had revenue of $470.62 million during the quarter, compared to the consensus estimate of $452.87 million. During the same period in the previous year, the firm posted ($0.31) earnings per share. The business’s revenue was up 5.4% compared to the same quarter last year. On average, sell-side analysts expect that Unity Software Inc. will post -1.25 earnings per share for the current year.

Insider Activity

In other Unity Software news, COO Alexander Blum sold 1,988 shares of Unity Software stock in a transaction dated Friday, November 28th. The stock was sold at an average price of $42.47, for a total transaction of $84,430.36. Following the completion of the transaction, the chief operating officer owned 561,130 shares of the company’s stock, valued at $23,831,191.10. The trade was a 0.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Tomer Bar-Zeev sold 50,000 shares of the company’s stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $47.00, for a total transaction of $2,350,000.00. Following the completion of the transaction, the director owned 873,146 shares in the company, valued at approximately $41,037,862. This trade represents a 5.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 1,397,935 shares of company stock worth $65,679,498. 3.61% of the stock is owned by insiders.

Institutional Investors Weigh In On Unity Software

Several hedge funds have recently added to or reduced their stakes in U. Bailard Inc. purchased a new position in shares of Unity Software during the fourth quarter valued at approximately $200,000. Swiss Life Asset Management Ltd increased its position in Unity Software by 3.1% during the fourth quarter. Swiss Life Asset Management Ltd now owns 14,861 shares of the company’s stock valued at $656,000 after acquiring an additional 449 shares during the last quarter. International Assets Investment Management LLC purchased a new stake in Unity Software during the fourth quarter valued at $36,000. Bluebird Wealth Management LLC bought a new position in Unity Software in the fourth quarter valued at about $1,493,000. Finally, Sequoia Financial Advisors LLC grew its stake in shares of Unity Software by 75.0% during the 4th quarter. Sequoia Financial Advisors LLC now owns 8,907 shares of the company’s stock valued at $393,000 after purchasing an additional 3,817 shares during the period. 73.46% of the stock is owned by institutional investors.

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.