Unity Software Sees Unusually High Options Volume (NYSE:U)

Unity Software Inc. (NYSE:U) saw unusually large options trading on Thursday. Stock traders purchased 44,938 call options on the stock. This is an increase of 38% compared to the average volume of 32,469 call options.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the stock. Morgan Stanley boosted their target price on shares of Unity Software from $50.00 to $55.00 and gave the company an “overweight” rating in a research report on Tuesday, October 13th. HSBC upgraded shares of Unity Software from a “hold” rating to a “buy” rating and set a $47.10 price target on the stock in a research report on Friday, August 7th. Benchmark raised shares of Unity Software from a “hold” rating to a “buy” rating and set a $50.00 price objective on the stock in a research note on Friday, August 7th. Zacks Research downgraded shares of Unity Software from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 6th. Finally, Wedbush upped their target price on Unity Software from $50.00 to $55.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 14th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Unity Software has a consensus rating of “Moderate Buy” and a consensus target price of $48.86.

Insider Buying and Selling

In related news, SVP Rebecca Boyden sold 1,032 shares of the business’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $45.32, for a total value of $46,770.24. Following the completion of the transaction, the senior vice president owned 308,413 shares of the company’s stock, valued at $13,977,277.16. The trade was a 0.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jarrod Yahes sold 26,017 shares of the business’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $45.31, for a total value of $1,178,830.27. Following the completion of the transaction, the chief financial officer directly owned 678,343 shares of the company’s stock, valued at approximately $30,735,721.33. This trade represents a 3.69% decrease in their position. 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 a total of 109,547 shares of company stock worth $4,884,202 over the last three months. Company insiders own 0.77% of the company’s stock.

Hedge Funds Weigh In On Unity Software

A number of institutional investors have recently added to or reduced their stakes in U. Sanders Morris Harris LLC acquired a new stake in Unity Software in the third quarter valued at approximately $1,345,000. Renaissance Technologies LLC acquired a new position in shares of Unity Software during the first quarter worth $54,534,000. Entropy Technologies LP acquired a new position in shares of Unity Software during the first quarter worth $1,985,000. Corient Private Wealth LP increased its holdings in shares of Unity Software by 194.1% during the second quarter. Corient Private Wealth LP now owns 48,691 shares of the company’s stock worth $1,392,000 after buying an additional 32,135 shares in the last quarter. Finally, Assenagon Asset Management S.A. lifted its stake in shares of Unity Software by 9,886.8% in the 3rd quarter. Assenagon Asset Management S.A. now owns 2,645,007 shares of the company’s stock valued at $108,260,000 after acquiring an additional 2,618,522 shares during the last quarter. 73.46% of the stock is currently owned by institutional investors and hedge funds.

Unity Software Price Performance

Unity Software stock traded up $5.92 during midday trading on Thursday, reaching $48.38. The company’s stock had a trading volume of 27,891,247 shares, compared to its average volume of 12,626,713. Unity Software has a 52 week low of $16.78 and a 52 week high of $52.15. The company has a current ratio of 2.03, a quick ratio of 2.03 and a debt-to-equity ratio of 0.55. The business has a 50-day moving average price of $42.23 and a 200-day moving average price of $31.76. The stock has a market cap of $21.29 billion, a PE ratio of -35.51, a price-to-earnings-growth ratio of 1.76 and a beta of 2.08.

Unity Software (NYSE:U) last posted its earnings results on Thursday, November 5th. The company reported $0.44 EPS for the quarter, topping analysts’ consensus estimates of $0.03 by $0.41. The firm had revenue of $622.09 million during the quarter, compared to analysts’ expectations of $567.03 million. Unity Software had a negative net margin of 28.97% and a positive return on equity of 4.64%. The business’s revenue for the quarter was up 32.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.20 earnings per share. On average, sell-side analysts predict that Unity Software will post 0.55 EPS for the current year.

Trending Headlines about Unity Software

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

• Positive Sentiment: Third-quarter revenue rose 32.2% year over year to $622.1 million, topping the $567 million consensus. Earnings per share of $0.44 also exceeded estimates of $0.03, while Unity reported $122 million in GAAP net income versus a $127 million loss a year earlier. Unity Q3 financial results
• Positive Sentiment: Management’s fourth-quarter guidance came in well above Wall Street expectations, adding to optimism that recent business momentum can continue. Coverage highlighted Unity’s Vector advertising business as a key contributor to growth and profitability. Unity earnings and guidance
• Neutral Sentiment: Unity’s PvX partnership gives eligible studios access to user-acquisition financing and advertising support, potentially directing more marketing activity through Unity’s ecosystem. The deal may support longer-term growth, but it was announced before the earnings report and was not the main immediate catalyst. Unity user-acquisition funding
• Negative Sentiment: Some coverage cautioned that Unity’s creator-tools business is slowing as advertising becomes more important to results. A separate valuation analysis also argued the shares may be expensive, raising the risk that strong expectations are already reflected in the stock. Unity business trends

Unity Software Company Profile

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.