Unity Software (NYSE:U) Cut to “Hold” at Wall Street Zen

Wall Street Zen cut shares of Unity Software (NYSE:U) from a buy rating to a hold rating in a report published on Saturday.

A number of other analysts also recently issued reports on the stock. Bank of America increased their price target on shares of Unity Software from $19.00 to $21.00 and gave the stock a “neutral” rating in a report on Friday. Barclays cut their price objective on shares of Unity Software from $35.00 to $28.00 and set an “equal weight” rating for the company in a report on Thursday, February 12th. Weiss Ratings reissued a “sell (d-)” rating on shares of Unity Software in a research note on Wednesday, January 21st. The Goldman Sachs Group dropped their target price on Unity Software from $47.00 to $27.00 and set a “neutral” rating on the stock in a research report on Thursday, February 12th. Finally, Wells Fargo & Company cut their price target on Unity Software from $38.00 to $29.00 and set an “overweight” rating for the company in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $37.41.

Unity Software Trading Up 5.6%

Shares of NYSE:U opened at $20.54 on Friday. 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 has a 12-month low of $15.33 and a 12-month high of $52.15. The business has a 50 day moving average of $23.93 and a two-hundred day moving average of $35.53. The company has a market capitalization of $8.90 billion, a PE ratio of -21.40, a PEG ratio of 10.43 and a beta of 2.15.

Unity Software (NYSE:U) last issued 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. The business had revenue of $503.09 million for the quarter, compared to analysts’ expectations of $490.64 million. Unity Software had a negative net margin of 21.77% and a negative return on equity of 4.76%. The business’s revenue was up 10.1% on a year-over-year basis. During the same quarter last year, the company earned ($0.30) EPS. As a group, analysts forecast that Unity Software will post -1.25 EPS for the current year.

Insiders Place Their Bets

In other Unity Software news, CAO Mark Barrysmith sold 10,578 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 transaction of $191,144.46. Following the completion of the transaction, the chief accounting officer directly owned 383,901 shares in the company, valued at approximately $6,937,091.07. This represents a 2.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, COO Alexander Blum sold 10,164 shares of the stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total transaction of $183,663.48. Following the transaction, the chief operating officer directly owned 550,966 shares in the company, valued at approximately $9,955,955.62. The trade was a 1.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 41,684 shares of company stock worth $773,350. Company insiders own 3.61% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. GAMMA Investing LLC lifted its position in shares of Unity Software by 10.8% in the third quarter. GAMMA Investing LLC now owns 2,967 shares of the company’s stock valued at $119,000 after acquiring an additional 288 shares in the last quarter. Newbridge Financial Services Group Inc. increased its position in shares of Unity Software by 12.9% during the third quarter. Newbridge Financial Services Group Inc. now owns 2,696 shares of the company’s stock worth $108,000 after purchasing an additional 308 shares in the last quarter. Xponance Inc. increased its position in shares of Unity Software by 1.8% during the third quarter. Xponance Inc. now owns 18,291 shares of the company’s stock worth $732,000 after purchasing an additional 328 shares in the last quarter. Larson Financial Group LLC raised its stake in Unity Software by 88.1% in the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock valued at $29,000 after purchasing an additional 341 shares during the last quarter. Finally, Swiss Life Asset Management Ltd raised its stake in Unity Software by 3.1% in the 4th quarter. Swiss Life Asset Management Ltd now owns 14,861 shares of the company’s stock valued at $656,000 after purchasing an additional 449 shares during the last quarter. 73.46% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Unity Software

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

• Positive Sentiment: Preliminary Q1 beat and strategic pivot — Unity raised Q1 revenue and adjusted EBITDA guidance and announced it is exiting legacy ad assets (ironSource), refocusing on its high-margin Vector AI ad platform and Create engine growth. Market reaction was strong on volume, signaling investor conviction. Unity Soars After Axing a Business, Here’s Why
• Positive Sentiment: Analyst upgrade — Seeking Alpha upgraded Unity to a “Strong Buy” citing excellent preliminary Q1 results and accelerating core growth, reinforcing the bullish narrative. Unity: Upgrade To Strong Buy On Excellent Preliminary Q1 Results
• Positive Sentiment: Analyst support and target increases — Some firms reiterated Buy/Outperform ratings and at least one published a higher price target ($32), reflecting confidence that the refocus improves long‑term margins and growth visibility. Unity Software (NYSE:U) Price Target Raised to $32.00
• Neutral Sentiment: Other analyst moves and market reactions — additional analyst notes include a small PT increase to $21 and headlines about shares gapping up after upgrades; these items support momentum but add limited new information. Unity Software (NYSE:U) Price Target Raised to $21.00
• Negative Sentiment: Mixed analyst positioning — BTIG trimmed its price target to $39 (a cut) and Wells Fargo lowered its target to $29, showing some skepticism on valuation and near-term upside; these cuts can cap rallies until execution confirms the strategy. BTIG Research Cuts Unity Software (NYSE:U) Price Target to $39.00
• Negative Sentiment: Near-term caution on estimates — market commentaries (Yahoo/Zacks) note that despite the rally, recent earnings-estimate revision trends may not support a sustained move higher unless the beat-and-clarity are repeated in reported Q1 results. Unity Software (U) Surges 13.5%: Is This an Indication of Further Gains?

Unity Software Company Profile

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.