Stock Traders Buy Large Volume of Call Options on Unity Software (NYSE:U)

Unity Software Inc. (NYSE:U) saw some unusual options trading activity on Tuesday. Traders purchased 75,902 call options on the company. This represents an increase of approximately 35% compared to the typical daily volume of 56,423 call options.

Unity Software Trading Up 4.7%

Unity Software stock traded up $1.29 during trading on Tuesday, reaching $28.82. The company had a trading volume of 13,489,526 shares, compared to its average volume of 15,432,205. The firm has a market capitalization of $12.33 billion, a price-to-earnings ratio of -27.45, a PEG ratio of 26.32 and a beta of 2.05. The company has a debt-to-equity ratio of 0.70, a quick ratio of 2.78 and a current ratio of 2.78. Unity Software has a 12-month low of $15.33 and a 12-month high of $52.15. The stock’s 50 day moving average price is $41.99 and its two-hundred day moving average price is $39.98.

Analyst Ratings Changes

Several equities analysts recently issued reports on U shares. Wall Street Zen upgraded shares of Unity Software from a “hold” rating to a “buy” rating in a research note on Saturday, December 6th. Jefferies Financial Group boosted their target price on Unity Software from $49.00 to $55.00 and gave the stock a “buy” rating in a report on Monday, January 5th. Arete Research raised shares of Unity Software from a “neutral” rating to a “buy” rating and set a $48.00 price objective on the stock in a report on Monday, December 1st. Wedbush upped their price objective on Unity Software from $50.00 to $55.00 and gave the stock an “outperform” rating in a report on Tuesday, December 2nd. Finally, UBS Group upped their price target on Unity Software from $35.00 to $40.00 and gave the company a “neutral” rating in a research note on Monday, October 20th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $44.88.

Unity Software News Roundup

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

• Positive Sentiment: Oppenheimer upgraded Unity from Market Perform to Outperform and set a $38 price target, citing AI resilience and giving the stock meaningful upside from current levels. This upgrade directly supported buying interest and helped lift the stock. Unity Software upgraded: Oppenheimer eyes $38 amid AI resilience
• Positive Sentiment: Unusually large single-day call option activity: investors bought 75,902 call contracts (about 35% above average call volume). Heavy call buying signals bullish positioning or speculative bets ahead of catalysts (earnings/AI announcements), which can drive near-term upside.
• Neutral Sentiment: Unity reports Q4 results tomorrow — this is the main near-term catalyst. Expectations include momentum from Vector AI and Create subscription trends, but investors will watch guidance and margin impact from elevated spending. Earnings outcomes and forward commentary can swing the stock either way. Earnings to watch: Unity (U) reports Q4 results tomorrow
• Neutral Sentiment: Analyst previews note upside from AI product adoption but flag high operating costs and increased spending could limit near-term margins — a mixed fundamental backdrop that keeps the post-earnings reaction uncertain. Unity Software to Post Q4 Earnings: What’s in the Cards for the Stock?
• Negative Sentiment: Media commentary from Jim Cramer flagged Unity as a name that could be “hurt by” AI, reflecting a narrative risk: while Unity is betting on AI-driven tools, some investors worry AI could displace parts of its business or pressure economics. Negative punditry can add volatility, especially around earnings. Jim Cramer Calls Unity (U) a “Candidate to Be Hurt By” AI

Insider Activity

In other Unity Software news, COO Alexander Blum sold 1,988 shares of the stock in a transaction that occurred on Friday, November 28th. The stock was sold at an average price of $42.47, for a total transaction of $84,430.36. Following the transaction, the chief operating officer owned 561,130 shares of the company’s stock, valued at $23,831,191.10. This trade represents a 0.35% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Tomer Bar-Zeev sold 50,000 shares of the stock in a transaction on Friday, December 12th. The stock was sold at an average price of $47.00, for a total value of $2,350,000.00. Following the completion of the sale, the director directly owned 873,146 shares in the company, valued at $41,037,862. This represents a 5.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,338,021 shares of company stock worth $63,138,575 over the last quarter. Corporate insiders own 3.61% of the company’s stock.

Institutional Trading of Unity Software

Institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. grew its stake in shares of Unity Software by 2.9% in the fourth quarter. Vanguard Group Inc. now owns 35,553,296 shares of the company’s stock worth $1,570,389,000 after purchasing an additional 996,685 shares in the last quarter. Slate Path Capital LP raised its holdings in shares of Unity Software by 25.4% during the second 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 during the period. Wellington Management Group LLP grew its holdings in shares of Unity Software by 58.7% during the third quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company’s stock valued at $729,284,000 after buying an additional 6,734,285 shares in the last quarter. Norges Bank acquired a new position in shares of Unity Software in the 2nd quarter valued at about $151,221,000. Finally, Geode Capital Management LLC increased its stake in Unity Software by 5.9% in the 4th quarter. Geode Capital Management LLC now owns 5,852,047 shares of the company’s stock valued at $258,547,000 after buying an additional 328,595 shares during the period. 73.46% of the stock is currently owned by institutional investors and hedge funds.

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.