Unity Software (NYSE:U) Trading 12.3% Higher After Strong Earnings

Unity Software Inc. (NYSE:U) rose 12.3% during trading on Thursday following a better than expected earnings announcement. The company traded as high as $40.70 and last traded at $39.8420. 9,665,249 shares traded hands during mid-day trading, a decline of 27% from the average session volume of 13,305,749 shares. The stock had previously closed at $35.47.

The company reported $0.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.39. Unity Software had a negative net margin of 34.99% and a negative return on equity of 1.30%. The company had revenue of $546.47 million during the quarter, compared to analyst estimates of $514.72 million. During the same quarter last year, the business posted $0.18 EPS. The company’s revenue for the quarter was up 24.0% on a year-over-year basis.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on U. Zacks Research upgraded Unity Software from a “hold” rating to a “strong-buy” rating in a report on Monday, July 13th. Weiss Ratings upgraded Unity Software from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday. Raymond James Financial initiated coverage on shares of Unity Software in a research note on Monday, June 29th. They issued a “market perform” rating for the company. Wedbush boosted their target price on shares of Unity Software from $32.00 to $36.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 22nd. Finally, Piper Sandler restated an “overweight” rating and set a $45.00 price target (up from $40.00) on shares of Unity Software in a research note on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $38.49.

Insider Activity

In other Unity Software news, CAO Mark Barrysmith sold 13,247 shares of the stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $27.18, for a total transaction of $360,053.46. Following the transaction, the chief accounting officer owned 370,654 shares in the company, valued at $10,074,375.72. This trade represents a 3.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jarrod Yahes sold 24,021 shares of Unity Software stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $27.18, for a total transaction of $652,890.78. Following the completion of the transaction, the chief financial officer directly owned 704,360 shares in the company, valued at approximately $19,144,504.80. This represents a 3.30% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 198,321 shares of company stock valued at $5,390,783. Insiders own 0.77% of the company’s stock.

Hedge Funds Weigh In On Unity Software

A number of institutional investors have recently made changes to their positions in the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in Unity Software by 5.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 813,176 shares of the company’s stock worth $15,930,000 after buying an additional 45,481 shares during the period. Focus Partners Wealth bought a new stake in shares of Unity Software in the first quarter valued at approximately $260,000. Northwestern Mutual Wealth Management Co. increased its position in Unity Software by 28.9% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 5,542 shares of the company’s stock worth $134,000 after acquiring an additional 1,241 shares during the period. California Public Employees Retirement System increased its position in Unity Software by 11.3% during the second quarter. California Public Employees Retirement System now owns 520,774 shares of the company’s stock worth $12,603,000 after acquiring an additional 53,015 shares during the period. Finally, Sei Investments Co. raised its stake in Unity Software by 1,135.6% during the 2nd quarter. Sei Investments Co. now owns 224,715 shares of the company’s stock valued at $5,438,000 after purchasing an additional 206,529 shares during the last quarter. 73.46% of the stock is currently owned by institutional investors.

Unity Software Trading Up 12.2%

The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.95 and a current ratio of 1.95. The company’s 50 day moving average is $29.67 and its 200 day moving average is $26.57. The stock has a market capitalization of $17.37 billion, a price-to-earnings ratio of -25.24, a PEG ratio of 4.17 and a beta of 2.04.

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.