Unity Software (NYSE:U) Price Target Lowered to $28.00 at Barclays

Unity Software (NYSE:U) had its price objective decreased by equities researchers at Barclays from $35.00 to $28.00 in a report released on Thursday,Benzinga reports. The brokerage presently has an “equal weight” rating on the stock. Barclays‘s price objective would indicate a potential upside of 38.10% from the company’s previous close.

U has been the subject of several other research reports. Piper Sandler upgraded Unity Software from a “neutral” rating to an “overweight” rating and increased their price objective for the company from $43.00 to $59.00 in a report on Thursday, December 11th. BTIG Research reduced their target price on Unity Software from $60.00 to $41.00 and set a “buy” rating on the stock in a research report on Thursday. Macquarie Infrastructure raised Unity Software from a “neutral” rating to an “outperform” rating and raised their price target for the stock from $33.00 to $50.00 in a report on Friday, November 7th. Wall Street Zen upgraded shares of Unity Software from a “hold” rating to a “buy” rating in a report on Saturday, December 6th. Finally, Wells Fargo & Company lowered their target price on shares of Unity Software from $54.00 to $38.00 and set an “overweight” rating for the company in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $40.74.

Unity Software Stock Down 5.3%

Shares of U stock traded down $1.14 during mid-day trading on Thursday, hitting $20.28. 13,671,587 shares of the stock traded hands, compared to its average volume of 18,696,662. Unity Software has a 52-week low of $15.33 and a 52-week high of $52.15. The stock has a market cap of $8.68 billion, a P/E ratio of -19.30, a P/E/G ratio of 30.46 and a beta of 2.04. The company has a debt-to-equity ratio of 0.70, a current ratio of 2.78 and a quick ratio of 2.78. The stock’s fifty day moving average is $41.22 and its two-hundred day moving average is $39.83.

Unity Software (NYSE:U) last posted its quarterly earnings data on Wednesday, February 11th. The company reported $0.24 EPS for the quarter, topping the consensus estimate of $0.20 by $0.04. Unity Software had a negative net margin of 24.15% and a negative return on equity of 9.45%. The firm had revenue of $503.09 million during the quarter, compared to analyst estimates of $490.64 million. During the same quarter in the previous year, the business posted ($0.30) EPS. Unity Software’s revenue was up 10.1% on a year-over-year basis. Equities analysts predict that Unity Software will post -1.25 EPS for the current year.

Insiders Place Their Bets

In other news, CAO Mark Barrysmith sold 14,407 shares of the stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $50.01, for a total value of $720,494.07. Following the sale, the chief accounting officer owned 394,479 shares in the company, valued at $19,727,894.79. This represents a 3.52% 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. Also, COO Alexander Blum sold 1,988 shares of the business’s stock in a transaction on Friday, November 28th. The shares were sold at an average price of $42.47, for a total transaction of $84,430.36. Following the transaction, the chief operating officer owned 561,130 shares of the company’s stock, valued at $23,831,191.10. This represents a 0.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 1,338,021 shares of company stock worth $63,138,575. Company insiders own 3.61% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Swiss National Bank grew its position in shares of Unity Software by 3.3% during the 4th quarter. Swiss National Bank now owns 624,800 shares of the company’s stock valued at $27,597,000 after acquiring an additional 20,200 shares during the period. Nuveen LLC boosted its position in Unity Software by 25.2% during the fourth quarter. Nuveen LLC now owns 1,382,396 shares of the company’s stock worth $61,060,000 after purchasing an additional 278,171 shares in the last quarter. Xponance LLC grew its holdings in Unity Software by 4.0% in the fourth quarter. Xponance LLC now owns 19,021 shares of the company’s stock valued at $840,000 after purchasing an additional 730 shares during the period. Picton Mahoney Asset Management increased its position in shares of Unity Software by 62.0% in the fourth quarter. Picton Mahoney Asset Management now owns 172,124 shares of the company’s stock valued at $7,603,000 after buying an additional 65,871 shares in the last quarter. Finally, Empowered Funds LLC increased its position in shares of Unity Software by 4.3% in the fourth quarter. Empowered Funds LLC now owns 39,242 shares of the company’s stock valued at $1,733,000 after buying an additional 1,606 shares in the last quarter. Institutional investors and hedge funds 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: Q4 beat and operational progress — Unity reported revenue of $503.1M and EPS of $0.24, and management highlighted strong Vector/Create momentum and improving cash generation. BusinessWire: Q4 Results
• Positive Sentiment: Oppenheimer upgraded Unity to Outperform, citing resilience and upside from AI-related products — a vote of confidence from a major shop. Oppenheimer Upgrade
• Positive Sentiment: Needham reaffirmed its Buy rating with a $50 price target, signaling some analysts still see sizable upside vs. current levels. Needham Reaffirmation (Benzinga)
• Neutral Sentiment: UBS cut its price target to $32 and moved to Neutral — a reduction in near-term expectations but not an outright sell call. UBS Lowers Target
• Neutral Sentiment: BTIG trimmed its target from $60 to $41 while keeping a Buy rating — reflects lower near-term forecasts but continued conviction in longer-term upside. BTIG Target Cut
• Neutral Sentiment: Management is intentionally winding down legacy, low‑margin ad business (IronSource) to accelerate migration to Vector (AI-powered products). That strategy can improve long-term margins but creates temporary revenue drag. MarketWatch: AI / Transition
• Negative Sentiment: Guidance miss and demand concerns — Unity’s Q1 revenue guide (480–490M) fell short of Street estimates, triggering a large sell-off on fears of weakening demand. Reuters: Downbeat Forecast
• Negative Sentiment: Market reaction amplified by AI displacement concerns and analyst notes that the near-term revenue hit could last until customers fully migrate — multiple outlets flagged the plunge as driven more by outlook and AI fears than the quarter’s headline beat. Seeking Alpha: Guidance Reaction
• Negative Sentiment: Heavy intraday selling and volatility — coverage notes a ~30% intraday drop and very high trading volume as investors delever and reprice expectations. Yahoo Finance: Shares Drop

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.