Unity Software (NYSE:U) Upgraded at Raymond James Financial

Unity Software (NYSE:U) was upgraded by analysts at Raymond James Financial from a “market perform” rating to an “outperform” rating in a research report issued on Thursday, MarketBeat Ratings reports. The brokerage currently has a $54.00 price target on the stock. Raymond James Financial’s price objective suggests a potential upside of 18.67% from the stock’s previous close.

Several other research analysts have also recently issued reports on the company. Wedbush upped their price objective on Unity Software from $32.00 to $36.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 22nd. HSBC raised Unity Software from a “hold” rating to a “buy” rating and set a $47.10 price objective for the company in a research note on Friday, August 7th. Zacks Research lowered shares of Unity Software from a “strong-buy” rating to a “hold” rating in a research note on Tuesday. Citigroup increased their price objective on Unity Software from $40.00 to $48.00 and gave the stock a “buy” rating in a research report on Monday, August 10th. Finally, Deutsche Bank Aktiengesellschaft raised Unity Software from a “hold” rating to a “buy” rating and boosted their price target for the stock from $31.00 to $50.00 in a research note on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $45.61.

Unity Software Stock Performance

Shares of U stock opened at $45.51 on Thursday. The firm’s 50 day moving average price is $42.41 and its 200-day moving average price is $32.23. The company has a debt-to-equity ratio of 0.55, a quick ratio of 2.03 and a current ratio of 2.03. Unity Software has a one year low of $16.78 and a one year high of $52.15. The firm has a market cap of $20.03 billion, a P/E ratio of -33.46, a P/E/G ratio of 1.97 and a beta of 2.11.

Unity Software (NYSE:U) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.28 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.11) by $0.39. Unity Software had a negative net margin of 28.97% and a positive return on equity of 4.64%. The business had revenue of $546.47 million for the quarter, compared to analysts’ expectations of $514.72 million. During the same quarter in the prior year, the company earned $0.18 earnings per share. The business’s quarterly revenue was up 24.0% on a year-over-year basis. As a group, equities research analysts predict that Unity Software will post 0.55 EPS for the current year.

Insider Activity

In other Unity Software news, SVP Rebecca Boyden sold 1,032 shares of Unity Software stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $45.32, for a total transaction of $46,770.24. Following the sale, the senior vice president directly owned 308,413 shares in the company, valued at $13,977,277.16. The trade was a 0.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Matthew Bromberg sold 16,383 shares of the company’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $45.31, for a total transaction of $742,313.73. Following the completion of the sale, the chief executive officer owned 1,541,131 shares in the company, valued at approximately $69,828,645.61. This trade represents a 1.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 109,547 shares of company stock valued at $4,884,202 in the last 90 days. Company insiders own 0.77% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Atreides Management LP purchased a new position in Unity Software during the 2nd quarter worth approximately $292,826,000. Resolute Advisors LLC lifted its stake in shares of Unity Software by 473.3% in the 2nd quarter. Resolute Advisors LLC now owns 4,766,219 shares of the company’s stock valued at $136,219,000 after purchasing an additional 3,934,840 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Unity Software by 52.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,245,014 shares of the company’s stock valued at $93,089,000 after acquiring an additional 1,465,962 shares in the last quarter. Amundi lifted its stake in shares of Unity Software by 4.7% in the second quarter. Amundi now owns 2,334,695 shares of the company’s stock worth $66,726,000 after buying an additional 105,268 shares during the last quarter. Finally, Avala Global LP bought a new stake in Unity Software during the second quarter valued at about $62,522,000. Institutional investors own 73.46% of the company’s stock.

Unity Software News Roundup

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

• Positive Sentiment: Google partnership expands Unity’s growth opportunity. Alphabet and Unity plan to launch an AI-powered game-creation platform, beginning with Playground and later expanding to Unity Spark. Users will be able to create playable games through natural-language prompts without coding, potentially bringing millions of new creators into Unity’s ecosystem. Google and Unity Team to Let Users Build Their Own Games
• Positive Sentiment: Investors see potential for broader adoption and margin leverage. Google’s AI models and infrastructure could help Unity offer advanced creation tools without bearing the full cost of developing and operating its own large-scale AI infrastructure. The partnership may also attract creators from competing platforms such as Roblox. Unity Software Surges on Google AI Gaming Partnership
• Neutral Sentiment: Management is targeting quality, not “AI slop.” CEO Matthew Bromberg said the company wants the Google-powered platform to reach consoles and emphasized creating meaningful games rather than low-quality AI-generated content. This could support Unity’s brand, but the commercial impact remains dependent on product adoption and monetization. Unity CEO Wants Google AI Gaming Platform to Reach Consoles
• Negative Sentiment: Zacks downgraded Unity from “strong-buy” to “hold.” The rating change may temper enthusiasm, particularly after the recent rally. Unity remains unprofitable on a net-income basis, although its latest reported quarter showed stronger-than-expected earnings and 24% year-over-year revenue growth.

Unity Software Company Profile

Unity Software Inc develops software and services for creating, operating and monetizing interactive, real-time 2D and 3D content. Its platform is widely used to build video games for mobile devices, personal computers, consoles and the web, as well as applications for industries such as automotive, architecture, engineering, construction, manufacturing and entertainment.

The company’s core offering is the Unity development platform, which includes tools for graphics, physics, animation, audio, scripting and cross-platform deployment.