The Goldman Sachs Group Cuts Unity Software (NYSE:U) Price Target to $27.00

Unity Software (NYSE:U) had its target price dropped by equities researchers at The Goldman Sachs Group from $47.00 to $27.00 in a research note issued to investors on Thursday,Benzinga reports. The firm currently has a “neutral” rating on the stock. The Goldman Sachs Group’s price objective suggests a potential upside of 37.42% from the company’s previous close.

A number of other analysts also recently weighed in on the stock. Freedom Capital raised shares of Unity Software to a “strong-buy” rating in a report on Thursday, January 15th. Arete Research raised Unity Software from a “neutral” rating to a “buy” rating and set a $48.00 target price on the stock in a research report on Monday, December 1st. Jefferies Financial Group boosted their price target on Unity Software from $49.00 to $55.00 and gave the company a “buy” rating in a research note on Monday, January 5th. Deutsche Bank Aktiengesellschaft started coverage on Unity Software in a report on Wednesday, October 22nd. They set a “hold” rating and a $39.00 price objective on the stock. Finally, Wedbush lowered their price objective on Unity Software from $37.00 to $30.00 and set an “outperform” rating on the stock in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $39.74.

Unity Software Stock Performance

Unity Software stock traded down $1.76 on Thursday, reaching $19.65. 18,036,739 shares of the stock were exchanged, compared to its average volume of 18,905,111. The company has a current ratio of 2.78, a quick ratio of 2.78 and a debt-to-equity ratio of 0.70. Unity Software has a twelve month low of $15.33 and a twelve month high of $52.15. The firm has a fifty day moving average price of $41.22 and a two-hundred day moving average price of $39.83. The stock has a market cap of $8.41 billion, a PE ratio of -18.87, a PEG ratio of 30.46 and a beta of 2.04.

Unity Software (NYSE:U) last posted its quarterly earnings data on Wednesday, February 11th. The company reported $0.24 EPS for the quarter, topping analysts’ consensus estimates of $0.20 by $0.04. Unity Software had a negative return on equity of 9.45% and a negative net margin of 24.15%.The business had revenue of $503.09 million for the quarter, compared to analyst estimates of $490.64 million. During the same period in the previous year, the company posted ($0.30) earnings per share. The firm’s revenue for the quarter was up 10.1% on a year-over-year basis. Sell-side analysts anticipate that Unity Software will post -1.25 EPS for the current year.

Insider Activity at Unity Software

In other Unity Software news, Director David Helgason sold 393,312 shares of the company’s stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $49.64, for a total transaction of $19,524,007.68. Following the transaction, the director owned 5,439,173 shares of the company’s stock, valued at approximately $270,000,547.72. This represents a 6.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Matthew S. Bromberg sold 41,025 shares of Unity Software stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $41.38, for a total value of $1,697,614.50. Following the completion of the sale, the chief executive officer directly owned 1,192,541 shares of the company’s stock, valued at $49,347,346.58. This trade represents a 3.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 1,338,021 shares of company stock valued at $63,138,575 in the last three months. 3.61% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Wellington Management Group LLP boosted its position 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 worth $729,284,000 after buying an additional 6,734,285 shares during the period. Norges Bank bought a new position in shares of Unity Software during the 2nd quarter worth approximately $151,221,000. Slate Path Capital LP grew its stake in shares of Unity Software by 25.4% during the 2nd quarter. Slate Path Capital LP now owns 20,016,952 shares of the company’s stock worth $484,410,000 after acquiring an additional 4,048,484 shares in the last quarter. Massachusetts Financial Services Co. MA acquired a new stake in shares of Unity Software in the third quarter valued at approximately $106,233,000. Finally, Duquesne Family Office LLC bought a new stake in shares of Unity Software in the second quarter worth $42,932,000. 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: Q4 beat and improving profitability — Unity beat revenue and EPS estimates for Q4 and reported stronger cash generation, supporting the case that its operating model is turning healthier. BusinessWire: Q4 Results
• Positive Sentiment: Vector momentum — Management highlighted Vector’s mid‑teen sequential growth and strong January performance, positioning it as the company’s higher‑margin growth engine over time; this underpins mid/long‑term upside if adoption continues. MarketBeat analysis
• Positive Sentiment: Some analysts remain constructive — a few firms reaffirmed buys or upgraded coverage (e.g., Oppenheimer upgrade, Needham buy/TP) which signals continued conviction among some Wall Street desks. Oppenheimer upgrade
• Neutral Sentiment: Unusually large options activity — heavy call buying was recorded recently, indicating speculative positioning that could amplify intraday moves but not a directional guarantee. (Entry reporting)
• Negative Sentiment: Weak Q1 guidance drove the sell‑off — Unity guided Q1 revenue below consensus ($480M–$490M vs. ~$492M expected), triggering concerns about demand and causing a rapid, high‑volume decline in the stock. Reuters: Downbeat forecast
• Negative Sentiment: Strategic shutdown creates a near‑term revenue hole — management’s decision to wind down the lower‑margin IronSource ad network to accelerate Vector adoption produces a temporary “air pocket” in revenue that markets punished. MarketBeat: Strategic shift
• Negative Sentiment: Analysts cut targets after results — multiple shops trimmed price targets (examples: Citizens Jmp $50→$37, Wedbush $37→$30, Barclays $35→$28, Wells Fargo $54→$38, UBS to $32) reflecting the near‑term uncertainty even as many targets still imply upside vs. the current price. Benzinga: Analyst revisions
• Negative Sentiment: Market panic and volume spike — the stock experienced a very large, rapid sell‑off (near‑term capitulation), which can pressure prices independently of fundamentals and widen intraday moves. MarketBeat: Plunge analysis

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.