Unity Software (NYSE:U) Trading Down 6.4% – Here’s Why

Unity Software Inc. (NYSE:U)’s share price traded down 6.4% during mid-day trading on Wednesday . The company traded as low as $43.33 and last traded at $42.76. 1,333,381 shares traded hands during mid-day trading, a decline of 78% from the average session volume of 6,093,410 shares. The stock had previously closed at $45.67.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Morgan Stanley raised their price target on shares of Unity Software from $48.00 to $52.00 and gave the company an “overweight” rating in a research report on Tuesday. Wells Fargo & Company upped their price objective on Unity Software from $51.00 to $54.00 and gave the company an “overweight” rating in a research note on Thursday, January 8th. BTIG Research upgraded shares of Unity Software from a “neutral” rating to a “buy” rating and set a $60.00 price target for the company in a report on Thursday, December 11th. Wedbush lifted their price target on Unity Software from $50.00 to $55.00 and gave the stock an “outperform” rating in a research note on Tuesday, December 2nd. Finally, The Goldman Sachs Group increased their price objective on Unity Software from $42.00 to $47.00 and gave the company a “neutral” rating in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Unity Software currently has an average rating of “Moderate Buy” and an average target price of $45.27.

Unity Software Stock Performance

The company has a quick ratio of 2.78, a current ratio of 2.78 and a debt-to-equity ratio of 0.70. The firm has a market capitalization of $17.63 billion, a PE ratio of -39.37, a PEG ratio of 49.57 and a beta of 2.04. The company has a 50-day moving average of $43.64 and a 200 day moving average of $39.21.

Unity Software (NYSE:U) last released its quarterly earnings results on Wednesday, November 5th. The company reported $0.20 EPS for the quarter, topping analysts’ consensus estimates of $0.17 by $0.03. The business had revenue of $470.62 million during the quarter, compared to analysts’ expectations of $452.87 million. Unity Software had a negative net margin of 24.15% and a negative return on equity of 9.45%. The business’s quarterly revenue was up 5.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.31) EPS. Equities research analysts predict that Unity Software Inc. will post -1.25 EPS for the current year.

Insider Buying and Selling at Unity Software

In other news, CEO Matthew S. Bromberg sold 41,025 shares of the stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $41.38, for a total transaction of $1,697,614.50. Following the completion of the sale, the chief executive officer owned 1,192,541 shares of the company’s stock, valued at approximately $49,347,346.58. This represents a 3.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Jarrod Yahes sold 34,719 shares of the company’s stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $41.38, for a total transaction of $1,436,672.22. Following the transaction, the chief financial officer directly owned 573,871 shares of the company’s stock, valued at approximately $23,746,781.98. This trade represents a 5.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,648,737 shares of company stock worth $75,203,547 over the last quarter. Company insiders own 3.61% of the company’s stock.

Institutional Trading of Unity Software

Several hedge funds have recently modified their holdings of the company. Wellington Management Group LLP increased its position in Unity Software by 58.7% in the third quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company’s stock worth $729,284,000 after purchasing an additional 6,734,285 shares during the last quarter. Norges Bank purchased a new position in shares of Unity Software in the 2nd quarter worth $151,221,000. Slate Path Capital LP increased its holdings in shares of Unity Software by 25.4% in the 2nd quarter. Slate Path Capital LP now owns 20,016,952 shares of the company’s stock worth $484,410,000 after buying an additional 4,048,484 shares during the last quarter. Massachusetts Financial Services Co. MA purchased a new stake in shares of Unity Software during the 3rd quarter valued at about $106,233,000. Finally, Duquesne Family Office LLC bought a new position in shares of Unity Software in the 2nd quarter valued at about $42,932,000. 73.46% of the stock is owned by hedge funds and other institutional investors.

Unity Software Company Profile

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.