Unity Software (NYSE:U) Given New $59.00 Price Target at Citigroup

Unity Software (NYSE:U) had its price objective hoisted by Citigroup from $48.00 to $59.00 in a research note released on Friday morning,Benzinga reports. Citigroup currently has a buy rating on the stock.

A number of other equities analysts have also commented on the company. Morgan Stanley raised their price target on Unity Software from $50.00 to $55.00 and gave the stock an “overweight” rating in a report on Tuesday, October 13th. Benchmark upgraded Unity Software from a “hold” rating to a “buy” rating and set a $50.00 price objective on the stock in a research note on Friday, August 7th. Piper Sandler reissued an “overweight” rating on shares of Unity Software in a report on Monday, October 5th. Oppenheimer restated an “outperform” rating and issued a $64.00 target price (up from $47.00) on shares of Unity Software in a research note on Friday. Finally, Zacks Research lowered Unity Software from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 6th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $56.32.

Unity Software Stock Up 5.6%

Shares of NYSE U traded up $2.75 during midday trading on Friday, hitting $51.55. 23,615,425 shares of the stock traded hands, compared to its average volume of 8,798,267. The company has a debt-to-equity ratio of 0.55, a quick ratio of 2.03 and a current ratio of 2.03. The business has a 50 day moving average price of $42.48 and a two-hundred day moving average price of $31.84. Unity Software has a one year low of $16.78 and a one year high of $52.91. The company has a market cap of $22.69 billion, a PE ratio of -63.65, a P/E/G ratio of 1.69 and a beta of 2.08.

Unity Software (NYSE:U) last released its quarterly earnings results on Thursday, November 5th. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.03 by $0.41. The business had revenue of $622.09 million for the quarter, compared to analysts’ expectations of $567.03 million. Unity Software had a negative net margin of 28.97% and a positive return on equity of 4.64%. The firm’s revenue for the quarter was up 32.2% compared to the same quarter last year. During the same period in the previous year, the company earned $0.20 earnings per share. On average, equities analysts predict that Unity Software will post 0.55 EPS for the current year.

Insider Transactions at Unity Software

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

Institutional Trading of Unity Software

Institutional investors have recently added to or reduced their stakes in the business. Atreides Management LP bought a new stake in shares of Unity Software in the 2nd quarter valued at about $292,826,000. Resolute Advisors LLC grew its position in Unity Software by 473.3% during the 2nd quarter. Resolute Advisors LLC now owns 4,766,219 shares of the company’s stock worth $136,219,000 after acquiring an additional 3,934,840 shares during the last quarter. Assenagon Asset Management S.A. increased its stake in Unity Software by 9,886.8% in the 3rd quarter. Assenagon Asset Management S.A. now owns 2,645,007 shares of the company’s stock worth $108,260,000 after purchasing an additional 2,618,522 shares during the period. Renaissance Technologies LLC purchased a new position in Unity Software in the 1st quarter worth approximately $54,534,000. Finally, Avala Global LP bought a new stake in Unity Software in the second quarter valued at approximately $62,522,000. 73.46% of the stock is currently owned by hedge funds and other institutional investors.

Unity Software News Roundup

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

• Positive Sentiment: Q3 results beat expectations: Unity reported revenue of $622.1 million, up 32.2% year over year, and adjusted earnings of $0.44 per share. It also posted its first GAAP quarterly profit since its 2020 IPO, with net income of $122 million. Unity Q3 earnings beat estimates on Vector strength and margin gains
• Positive Sentiment: AI-driven advertising is gaining traction: Revenue from Vector, Unity’s AI-powered advertising platform, surged 126%, helping widen margins and bolstering the growth outlook. Unity Q3 earnings call highlights Vector growth and AI expansion
• Positive Sentiment: Outlook topped analyst expectations: Unity’s Q4 revenue guidance was well above consensus, with management anticipating 65%–67% growth in strategic revenue and an adjusted EBITDA margin of about 42%. Unity forecasts Q4 strategic revenue and margin
• Positive Sentiment: Analyst targets moved higher: Needham and Citizens JMP raised targets to $70; Oppenheimer and Wells Fargo raised theirs to $64, while Citigroup lifted its target to $59. Needham price-target update
• Neutral Sentiment: Takeover reports add uncertainty: Silver Lake and Saudi Arabia’s Public Investment Fund reportedly held discussions about acquiring Unity. Talks are described as early-stage, with no confirmed agreement or final terms. Silver Lake and PIF takeover approach report
• Negative Sentiment: Creator tools are a caveat: While advertising is growing rapidly, a report noted that Unity’s creator-tools business is slowing, which could temper the broader growth story if that weakness persists. Vector ads lift Unity to first GAAP profit

Unity Software Company Profile

Unity Software Inc develops software and services for creating, operating and monetizing interactive, real-time content. Its core product is the Unity engine, a development platform used to build video games and experiences for mobile devices, personal computers, consoles, augmented and virtual reality systems, and other platforms.

The company also provides tools and services that support the development and operation of interactive applications, including collaboration and cloud-based development tools, multiplayer and voice communication capabilities, analytics, advertising, and in-app monetization solutions.