Unity Software Target of Unusually Large Options Trading (NYSE:U)

Unity Software Inc. (NYSE:U) was the recipient of some unusual options trading on Tuesday. Stock traders acquired 75,902 call options on the stock. This is an increase of 35% compared to the average daily volume of 56,423 call options.

Insider Activity

In other Unity Software news, CEO Matthew S. Bromberg sold 41,025 shares of the business’s stock in a transaction 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 sale, the chief executive officer directly owned 1,192,541 shares in the company, valued at approximately $49,347,346.58. The trade was a 3.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Jarrod Yahes sold 34,719 shares of the firm’s stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $41.38, for a total value of $1,436,672.22. Following the completion of the transaction, the chief financial officer owned 573,871 shares of the company’s stock, valued at approximately $23,746,781.98. This represents a 5.70% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 1,338,021 shares of company stock valued at $63,138,575 in the last 90 days. Insiders own 3.61% of the company’s stock.

Institutional Trading of Unity Software

Several hedge funds and other institutional investors have recently modified their holdings of U. REAP Financial Group LLC acquired a new position in Unity Software in the fourth quarter worth approximately $28,000. Root Financial Partners LLC acquired a new position in shares of Unity Software during the 3rd quarter worth $27,000. V Square Quantitative Management LLC bought a new position in shares of Unity Software during the 4th quarter valued at $30,000. Larson Financial Group LLC lifted its stake in shares of Unity Software by 88.1% in the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock valued at $29,000 after purchasing an additional 341 shares during the last quarter. Finally, International Assets Investment Management LLC acquired a new stake in shares of Unity Software in the 4th quarter valued at $36,000. 73.46% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of analysts recently commented on U shares. Deutsche Bank Aktiengesellschaft assumed coverage on Unity Software in a research note on Wednesday, October 22nd. They set a “hold” rating and a $39.00 price objective on the stock. The Goldman Sachs Group raised their price target on shares of Unity Software from $42.00 to $47.00 and gave the stock a “neutral” rating in a research note on Tuesday, January 13th. Oppenheimer raised shares of Unity Software from a “market perform” rating to an “outperform” rating and set a $38.00 price objective for the company in a research report on Tuesday. Jefferies Financial Group upped their price objective on shares of Unity Software from $49.00 to $55.00 and gave the company a “buy” rating in a research note on Monday, January 5th. Finally, Morgan Stanley raised their target price on shares of Unity Software from $48.00 to $52.00 and gave the stock an “overweight” rating in a research report on Tuesday, January 13th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $44.46.

Trending Headlines about Unity Software

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

• Positive Sentiment: Q4 beat on revenue and profitability; company showed improved cash generation (Q4 revenue ~$503.1M, EPS $0.24, strong free cash flow and adjusted EBITDA). These results support the view of an operational turnaround. BusinessWire: Q4 Results
• Positive Sentiment: Momentum in Vector (AI-powered ad/product platform) and Create was highlighted by management as the growth driver; Vector showed strong sequential growth and management expects material ramp this year — a constructive long-term catalyst if adoption continues. Yahoo: Q4 Earnings Highlights
• Positive Sentiment: Sell-side conviction remains mixed but includes bullish takes: Oppenheimer upgraded to outperform ($38 PT) and Needham reaffirmed buy with a $50 PT — indicating some analysts see substantial upside if the transition succeeds. Yahoo: Oppenheimer Upgrade
• Neutral Sentiment: Full earnings/call detail is available (transcript and replay) — useful for investors who want management color on the IronSource wind‑down, Vector metrics and timing of revenue re-acceleration. Seeking Alpha: Earnings Call Transcript
• Neutral Sentiment: Corporate governance update: Bernard Kim was added to the board — a standard board refresh item investors may view as incremental. FinanzNachrichten: Board Appointment
• Negative Sentiment: Guidance miss: Unity guided Q1 revenue $480M–$490M, below the ~$492M–$494M consensus. The below‑consensus outlook was the primary trigger for heavy selling and concern about near‑term demand. Reuters: Downbeat Forecast
• Negative Sentiment: Management is intentionally shutting down legacy, lower‑margin ad inventory (IronSource) to accelerate migration to Vector — that creates a temporary revenue “air pocket,” amplifying near‑term headline weakness and investor anxiety. MarketWatch: AI Displacement Fears
• Negative Sentiment: Analyst and sentiment moves: some firms cut targets (e.g., UBS lowered PT to $32) and commentators flagged AI exposure and execution risk — contributing to the large volume sell‑off and oversold technicals. Benzinga: Analyst/Target Moves

Unity Software Price Performance

Shares of U opened at $21.43 on Thursday. The business’s 50-day moving average is $41.22 and its 200-day moving average is $39.83. 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 company has a market capitalization of $9.17 billion, a price-to-earnings ratio of -20.41, a P/E/G ratio of 30.46 and a beta of 2.04. Unity Software has a fifty-two week low of $15.33 and a fifty-two week high of $52.15.

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

About Unity Software

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.