Unity Software (NYSE:U) Upgraded to Buy at Deutsche Bank Aktiengesellschaft

Deutsche Bank Aktiengesellschaft upgraded shares of Unity Software (NYSE:U) from a hold rating to a buy rating in a research note released on Friday morning, MarketBeat.com reports. The brokerage currently has $50.00 price objective on the stock, up from their prior price objective of $31.00.

Other equities research analysts have also recently issued reports about the company. BTIG Research increased their price target on Unity Software from $43.00 to $51.00 and gave the company a “buy” rating in a research note on Thursday. UBS Group reaffirmed an “outperform” rating on shares of Unity Software in a research report on Friday. Piper Sandler reissued an “overweight” rating and set a $45.00 target price (up from $40.00) on shares of Unity Software in a research report on Thursday, July 30th. Raymond James Financial started coverage on shares of Unity Software in a research note on Monday, June 29th. They set a “market perform” rating on the stock. Finally, Weiss Ratings upgraded shares of Unity Software from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday. Two analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $44.74.

Unity Software Stock Up 5.6%

Unity Software 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 stock has a market capitalization of $18.81 billion, a price-to-earnings ratio of -31.69, a PEG ratio of 4.83 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 business has a fifty day moving average price of $30.15 and a 200-day moving average price of $26.69.

Insider Transactions at Unity Software

In related news, CAO Mark Barrysmith sold 13,247 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $27.18, for a total value of $360,053.46. Following the transaction, the chief accounting officer owned 370,654 shares in the company, valued at approximately $10,074,375.72. This represents a 3.45% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Matthew S. Bromberg sold 138,993 shares of the company’s stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $27.18, for a total transaction of $3,777,829.74. Following the completion of the sale, the chief executive officer directly owned 1,557,514 shares in the company, valued at $42,333,230.52. This trade represents a 8.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 198,321 shares of company stock valued at $5,390,783 over the last quarter. Company insiders own 0.77% of the company’s stock.

Hedge Funds Weigh In On Unity Software

A number of institutional investors have recently modified their holdings of the stock. REAP Financial Group LLC acquired a new stake in Unity Software during the fourth quarter valued at $28,000. Larson Financial Group LLC raised its position in shares of Unity Software by 88.1% in the third quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock worth $29,000 after acquiring an additional 341 shares during the period. V Square Quantitative Management LLC purchased a new stake in shares of Unity Software during the 4th quarter worth about $30,000. IFP Advisors Inc purchased a new stake in shares of Unity Software during the 3rd quarter worth about $33,000. Finally, International Assets Investment Management LLC acquired a new stake in shares of Unity Software during the 4th quarter valued at about $36,000. Hedge funds and other institutional investors own 73.46% of the company’s stock.

Key Stories Impacting Unity Software

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.