Unity Software (NYSE:U) Raised to “Buy” at Wall Street Zen

Unity Software (NYSE:U) was upgraded by research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Saturday.

Other analysts have also issued research reports about the company. Raymond James Financial started coverage on Unity Software in a report on Monday, June 29th. They set a “market perform” rating for the company. Barclays raised their price objective on Unity Software from $28.00 to $33.00 and gave the stock an “equal weight” rating in a research note on Friday, May 8th. BTIG Research lifted their price objective on Unity Software from $43.00 to $51.00 and gave the company a “buy” rating in a research report on Thursday. Wells Fargo & Company lifted their price objective on Unity Software from $36.00 to $48.00 and gave the company an “overweight” rating in a research report on Friday. Finally, UBS Group reiterated an “outperform” rating on shares of Unity Software in a research note on Friday. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $44.74.

Unity Software Trading Up 0.2%

Shares of U stock opened at $43.09 on Friday. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.95 and a quick ratio of 1.95. The company has a market cap of $18.96 billion, a price-to-earnings ratio of -31.69, a PEG ratio of 5.09 and a beta of 2.04. Unity Software has a 1 year low of $16.78 and a 1 year high of $52.15. The firm has a fifty day moving average price of $30.15 and a 200-day moving average price of $26.58.

Insider Buying and Selling

In other Unity Software news, CFO Jarrod Yahes sold 24,021 shares of the firm’s stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $27.18, for a total transaction of $652,890.78. Following the sale, the chief financial officer directly owned 704,360 shares of the company’s stock, valued at $19,144,504.80. This trade represents a 3.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing 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, SVP Rebecca Berenice Boyden sold 952 shares of the business’s stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $27.20, for a total value of $25,894.40. Following the completion of the transaction, the senior vice president owned 309,445 shares in the company, valued at $8,416,904. The trade was a 0.31% decrease in their ownership of the stock. 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 have sold a total of 198,321 shares of company stock worth $5,390,783 in the last three months. Corporate insiders own 0.77% of the company’s stock.

Hedge Funds Weigh In On Unity Software

Hedge funds have recently made changes to their positions in the business. Newbridge Financial Services Group Inc. grew its stake in shares of Unity Software by 12.9% during the 3rd 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 during the period. Larson Financial Group LLC lifted its stake in shares of 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 period. Swiss Life Asset Management Ltd boosted its holdings in Unity Software by 3.1% during the fourth quarter. Swiss Life Asset Management Ltd now owns 14,861 shares of the company’s stock worth $656,000 after buying an additional 449 shares in the last quarter. Captrust Financial Advisors boosted its holdings in Unity Software by 2.1% during the second quarter. Captrust Financial Advisors now owns 22,330 shares of the company’s stock worth $540,000 after buying an additional 462 shares in the last quarter. Finally, Ritholtz Wealth Management boosted its holdings in Unity Software by 8.9% during the fourth quarter. Ritholtz Wealth Management now owns 5,732 shares of the company’s stock worth $253,000 after buying an additional 468 shares in the last quarter. 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: Q2 results exceeded expectations: Unity reported revenue of approximately $546.5 million, up 24% year over year, and adjusted earnings of $0.28 per share versus consensus estimates near $0.24-$0.25. Strategic Revenue growth and improved margins were key contributors. Unity Software Q2 Earnings and Revenues Top Estimates, Rise Y/Y
• Positive Sentiment: Upbeat forward outlook: Management forecast third-quarter revenue of $540 million to $550 million, above the roughly $533.8 million analyst consensus, alongside a projected 33% adjusted EBITDA margin. Management also indicated that GAAP profitability could arrive as early as the third quarter of 2026. Unity forecasts Q3 strategic revenue of $540M-$550M
• Positive Sentiment: Vector and Unity 7 support growth expectations: Analysts highlighted accelerating Vector AI advertising growth, Unity 7 integration, runtime-data monetization and portfolio simplification. Bank of America reportedly sees a sustainable Vector growth runway through the end of 2027. U Q2 Earnings Call Highlights Vector AI Acceleration
• Positive Sentiment: Broad analyst support: Bank of America and Deutsche Bank upgraded Unity to “buy” with $50 targets, while Benchmark and HSBC also moved to “buy.” Needham raised its target to $54, Piper Sandler to $55, and Wells Fargo, Oppenheimer and Citizens JMP also lifted their targets and maintained bullish ratings. Analysts Boost Forecasts on Unity After Q2 Results
• Neutral Sentiment: Unusually heavy call-option buying accompanied the earnings reaction, indicating increased bullish positioning but also the potential for elevated short-term volatility.
• Negative Sentiment: Despite improving margins and guidance, Unity remains unprofitable on a GAAP basis, and its elevated valuation and proximity to its 52-week high could leave the stock sensitive to any slowdown in Vector growth or disappointment in execution.

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.