Unity Software (NYSE:U) Upgraded to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Unity Software (NYSE:U) from a hold rating to a buy rating in a report published on Saturday.

A number of other research analysts have also commented on U. Needham & Company LLC lifted their price objective on shares of Unity Software from $40.00 to $54.00 and gave the company a “buy” rating in a research note on Friday. Oppenheimer upped their price objective on shares of Unity Software from $38.00 to $47.00 and gave the stock an “outperform” rating in a research report on Friday. Benchmark raised shares of Unity Software from a “hold” rating to a “buy” rating and set a $50.00 price target for the company in a report on Friday. Citigroup reduced their price objective on shares of Unity Software from $43.00 to $40.00 and set a “buy” rating for the company in a research report on Thursday, April 30th. Finally, UBS Group reaffirmed an “outperform” rating on shares of Unity Software in a report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $44.74.

Unity Software Stock Performance

Shares of U opened at $43.09 on Friday. The company’s 50 day simple moving average is $30.15 and its 200-day simple moving average is $26.69. The firm has a market cap of $18.81 billion, a PE ratio of -31.69, a price-to-earnings-growth ratio of 5.09 and a beta of 2.04. Unity Software has a 12-month low of $16.78 and a 12-month high of $52.15. The company has a current ratio of 1.95, a quick ratio of 1.95 and a debt-to-equity ratio of 0.56.

Insider Buying and Selling

In other news, CAO Mark Barrysmith sold 13,247 shares of the company’s stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $27.18, for a total value of $360,053.46. Following the sale, the chief accounting officer directly owned 370,654 shares in the company, valued at $10,074,375.72. This represents a 3.45% decrease in their ownership of the stock. The sale 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, CEO Matthew S. Bromberg sold 138,993 shares of the stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $27.18, for a total value of $3,777,829.74. Following the sale, the chief executive officer directly owned 1,557,514 shares in the company, valued at approximately $42,333,230.52. The trade was a 8.19% 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. Over the last 90 days, insiders sold 198,321 shares of company stock valued at $5,390,783. Company insiders own 0.77% of the company’s stock.

Institutional Trading of Unity Software

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its holdings in shares of Unity Software by 2.9% in the 4th quarter. Vanguard Group Inc. now owns 35,553,296 shares of the company’s stock valued at $1,570,389,000 after purchasing an additional 996,685 shares during the last quarter. Wellington Management Group LLP lifted its holdings in shares of Unity Software by 58.7% during the 3rd quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company’s stock valued at $729,284,000 after acquiring an additional 6,734,285 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of Unity Software by 5.9% during the 4th quarter. Geode Capital Management LLC now owns 5,852,047 shares of the company’s stock valued at $258,547,000 after acquiring an additional 328,595 shares in the last quarter. Norges Bank purchased a new stake in shares of Unity Software during the 4th quarter valued at about $230,285,000. Finally, Ameriprise Financial Inc. lifted its position in Unity Software by 37.8% during the 2nd quarter. Ameriprise Financial Inc. now owns 4,628,328 shares of the company’s stock worth $112,006,000 after acquiring an additional 1,270,798 shares in the last quarter. Hedge funds and other institutional investors own 73.46% of the company’s stock.

Key Unity Software News

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.

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.