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

Unity Software (NYSE:U) had its price objective boosted by stock analysts at Citigroup from $48.00 to $59.00 in a research note issued on Friday, Benzinga reports. The brokerage presently has a “buy” rating on the stock. Citigroup‘s price objective would indicate a potential upside of 14.44% from the stock’s previous close.

Several other analysts have also issued reports on U. Wall Street Zen raised Unity Software from a “hold” rating to a “buy” rating in a research note on Monday, October 12th. Bank of America upgraded shares of Unity Software from a “neutral” rating to a “buy” rating and increased their price target for the company from $30.00 to $50.00 in a research report on Friday, August 7th. Morgan Stanley lifted their price target on shares of Unity Software from $50.00 to $55.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 13th. Weiss Ratings restated a “sell (d-)” rating on shares of Unity Software in a report on Monday. Finally, Oppenheimer restated an “outperform” rating and issued a $64.00 price objective (up from $47.00) on shares of Unity Software in a report on Friday. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Unity Software currently has an average rating of “Moderate Buy” and an average price target of $56.00.

Unity Software Price Performance

U stock traded up $2.75 during mid-day trading on Friday, hitting $51.55. 23,545,834 shares of the stock were exchanged, compared to its average volume of 12,781,176. The business has a fifty day moving average price of $42.32 and a 200 day moving average price of $31.79. Unity Software has a 12 month low of $16.78 and a 12 month high of $52.91. The company has a debt-to-equity ratio of 0.55, a current ratio of 2.03 and a quick ratio of 2.03. The stock has a market capitalization of $22.69 billion, a price-to-earnings ratio of -37.91, a PEG ratio of 1.85 and a beta of 2.08.

Unity Software (NYSE:U) last announced its quarterly earnings data on Thursday, November 5th. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.03 by $0.41. The firm had revenue of $622.09 million for the quarter, compared to analyst estimates of $567.03 million. Unity Software had a positive return on equity of 4.64% and a negative net margin of 28.97%. The company’s revenue was up 32.2% on a year-over-year basis. During the same period in the prior year, the company earned $0.20 EPS. On average, sell-side analysts anticipate that Unity Software will post 0.55 EPS for the current year.

Insiders Place Their Bets

In other news, SVP Rebecca Boyden sold 1,032 shares of the business’s stock in a transaction that occurred on Tuesday, August 25th. The stock was 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 of the company’s stock, valued at approximately $13,977,277.16. The trade was a 0.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Alexander Blum sold 43,556 shares of the company’s stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $43.51, for a total value of $1,895,121.56. Following the transaction, the chief operating officer owned 661,855 shares of the company’s stock, valued at approximately $28,797,311.05. This represents a 6.17% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 109,547 shares of company stock valued at $4,884,202 in the last 90 days. 0.77% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Atreides Management LP purchased a new stake in shares of Unity Software in the 2nd quarter worth about $292,826,000. Resolute Advisors LLC boosted its stake in shares of Unity Software by 473.3% during the 2nd quarter. Resolute Advisors LLC now owns 4,766,219 shares of the company’s stock valued at $136,219,000 after purchasing an additional 3,934,840 shares in the last quarter. Assenagon Asset Management S.A. increased its position in shares of Unity Software by 9,886.8% during the third quarter. Assenagon Asset Management S.A. now owns 2,645,007 shares of the company’s stock valued at $108,260,000 after buying an additional 2,618,522 shares during the period. Dimensional Fund Advisors LP increased its position in shares of Unity Software by 52.8% during the first quarter. Dimensional Fund Advisors LP now owns 4,245,014 shares of the company’s stock valued at $93,089,000 after buying an additional 1,465,962 shares during the period. Finally, Amundi increased its position in shares of Unity Software by 4.7% during the second quarter. Amundi now owns 2,334,695 shares of the company’s stock valued at $66,726,000 after buying an additional 105,268 shares during the period. 73.46% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Unity Software

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

• Positive Sentiment: Unity beat third-quarter expectations, reporting $622.1 million in revenue, up 32.2% year over year, and adjusted EPS of $0.44. It also recorded its first GAAP-profitable quarter since its 2020 IPO, with $122 million in net income. Unity Q3 earnings highlights
• Positive Sentiment: Growth in Vector, Unity’s AI-powered advertising product, was a standout: revenue rose 126%. Management’s fourth-quarter revenue guidance of $688 million–$696 million is well above the cited analyst consensus of $601.6 million, reinforcing expectations for continued growth. Unity Q3 earnings and Vector growth
• Positive Sentiment: Reports say Silver Lake and Saudi Arabia’s Public Investment Fund have held discussions about acquiring Unity. The reports have fueled investor interest, but discussions do not mean a deal has been reached. Reported takeover approach
• Positive Sentiment: Several firms raised their price targets and maintained bullish ratings, including Citizens JMP and Needham, which set targets of $70. Citizens JMP rating
• Neutral Sentiment: Investors will also be watching whether Unity can sustain the advertising momentum and improve its creator-tools business; one earnings analysis noted that creator tools are slowing. Analysis of Vector advertising and creator tools

About Unity Software

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.