Morgan Stanley Issues Positive Forecast for Unity Software (NYSE:U) Stock Price

Unity Software (NYSE:U) had its price objective lifted by Morgan Stanley from $30.00 to $32.00 in a report released on Friday,Benzinga reports. They currently have an overweight rating on the stock.

A number of other research firms have also weighed in on U. Weiss Ratings reissued a “sell (d-)” rating on shares of Unity Software in a report on Wednesday, January 21st. Barclays cut their price target on shares of Unity Software from $35.00 to $28.00 and set an “equal weight” rating on the stock in a report on Thursday, February 12th. BTIG Research reduced their price objective on shares of Unity Software from $41.00 to $39.00 and set a “buy” rating on the stock in a research note on Friday. Wells Fargo & Company decreased their price objective on Unity Software from $38.00 to $29.00 and set an “overweight” rating for the company in a report on Friday. Finally, Piper Sandler raised Unity Software from a “neutral” rating to an “overweight” rating and raised their target price for the stock from $43.00 to $59.00 in a research report on Thursday, December 11th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $37.41.

Unity Software Price Performance

Unity Software stock opened at $19.47 on Friday. The stock has a 50-day moving average price of $24.34 and a two-hundred day moving average price of $35.81. Unity Software has a 12 month low of $15.33 and a 12 month high of $52.15. The company has a market capitalization of $8.43 billion, a PE ratio of -20.28, a P/E/G ratio of 9.19 and a beta of 2.14. The company has a current ratio of 1.84, a quick ratio of 1.84 and a debt-to-equity ratio of 0.52.

Unity Software (NYSE:U) last released its quarterly earnings results on Wednesday, February 11th. The company reported $0.24 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.04. Unity Software had a negative return on equity of 4.76% and a negative net margin of 21.77%.The company had revenue of $503.09 million for the quarter, compared to analysts’ expectations of $490.64 million. The business’s quarterly revenue was up 10.1% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.30) earnings per share. Analysts expect that Unity Software will post -1.25 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Jarrod Yahes sold 12,196 shares of the company’s stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total value of $220,381.72. Following the sale, the chief financial officer directly owned 533,933 shares of the company’s stock, valued at approximately $9,648,169.31. This represents a 2.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CAO Mark Barrysmith sold 10,578 shares of the stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total transaction of $191,144.46. Following the sale, the chief accounting officer owned 383,901 shares of the company’s stock, valued at approximately $6,937,091.07. This trade represents a 2.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 41,684 shares of company stock worth $773,350. 3.61% of the stock is currently owned by insiders.

Institutional Trading of Unity Software

Institutional investors have recently bought and sold shares of the company. Root Financial Partners LLC bought a new position in shares of Unity Software in the 3rd quarter worth about $27,000. REAP Financial Group LLC bought a new stake in shares of Unity Software during the 4th quarter valued at about $28,000. Larson Financial Group LLC grew its stake in Unity Software by 88.1% during the third quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock worth $29,000 after purchasing an additional 341 shares during the period. V Square Quantitative Management LLC acquired a new stake in Unity Software during the fourth quarter worth approximately $30,000. Finally, IFP Advisors Inc bought a new stake in Unity Software in the third quarter worth approximately $33,000. Institutional investors own 73.46% of the company’s stock.

Unity Software News Summary

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

• Positive Sentiment: Preliminary Q1 beat — Unity said preliminary revenue of $505M–$508M (vs. prior guidance $480M–$490M) and Adjusted EBITDA $130M–$135M (vs. $105M–$110M); management cited Unity V as a driver and flagged a plan to exit non‑strategic ad units to boost growth/profitability. Business Wire: Preliminary Results
• Positive Sentiment: Market reaction & company update — Coverage notes the upbeat preview and strategic shake‑up as the immediate reason for the rally. Investors are treating the combination of better-than-expected Q1 metrics and a streamlined business mix as meaningful de‑risking. Proactive Investors: Shares Jump After Upbeat Preliminary Results
• Positive Sentiment: Analyst support — Multiple firms reiterated/raised ratings and targets (e.g., Morgan Stanley raised its price target to $32 and set an “overweight” rating; Citizens/JMP reaffirmed a $37 Market Outperform). Those actions lend credibility to the rebound thesis and support buying interest. Benzinga: Analyst Actions
• Positive Sentiment: Heavy call buying — Unusually large options activity: ~57,327 call contracts traded (≈15% above typical daily call volume), consistent with directional bullish speculation or hedged positions ahead of the print. (No link)
• Positive Sentiment: China sale speculation — Reports that China asset sale talk has intensified are fueling M&A speculation, which can attract event‑driven buyers and bid up the stock while details remain unresolved. 247wallst: China Sale Talk
• Neutral Sentiment: Guidance/preview coverage — Several outlets are highlighting the company’s updated Q1 outlook and strategic changes; that coverage increases visibility but outcomes depend on the formal earnings release and management commentary. Benzinga: What’s Behind The Jump
• Negative Sentiment: Competitive / adtech skepticism — Comparative analyses argue rival Digital Turbine may have the edge in adtech metrics (ODS/AGP growth) and point to lingering weaknesses in parts of Unity’s ad platform, which could cap upside if execution stalls. Zacks: APPS vs U AdTech Comparison
• Negative Sentiment: Mixed analyst moves — Some firms trimmed price targets (e.g., Wells Fargo lowered its target from $38 to $29 despite keeping an “overweight” call), reflecting ongoing model risk and differing views on longer‑term monetization — a reminder the recovery isn’t unanimous. Benzinga: Analyst Notes

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.