Unity Software (NYSE:U) Shares Gap Up Following Analyst Upgrade

Unity Software Inc. (NYSE:U)’s stock price gapped up before the market opened on Friday after Morgan Stanley raised their price target on the stock from $30.00 to $32.00. The stock had previously closed at $17.13, but opened at $20.23. Morgan Stanley currently has an overweight rating on the stock. Unity Software shares last traded at $18.8120, with a volume of 18,674,807 shares.

U has been the topic of a number of other reports. Weiss Ratings restated a “sell (d-)” rating on shares of Unity Software in a report on Wednesday, January 21st. Barclays dropped their target price on shares of Unity Software from $35.00 to $28.00 and set an “equal weight” rating on the stock in a report on Thursday, February 12th. Bank of America lifted their price target on Unity Software from $19.00 to $21.00 and gave the stock a “neutral” rating in a report on Friday. Citigroup reduced their target price on Unity Software from $52.00 to $43.00 and set a “buy” rating for the company in a research note on Thursday, February 12th. Finally, Benchmark reissued a “hold” rating on shares of Unity Software in a report on Monday, February 2nd. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Unity Software has an average rating of “Moderate Buy” and an average target price of $37.41.

Insider Activity at Unity Software

In other news, COO Alexander Blum sold 2,541 shares of the business’s stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $18.76, for a total value of $47,669.16. Following the completion of the transaction, the chief operating officer directly owned 548,425 shares in the company, valued at approximately $10,288,453. The trade was a 0.46% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Mark Barrysmith sold 10,578 shares of the stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total transaction of $191,144.46. Following the completion of the transaction, the chief accounting officer directly owned 383,901 shares of the company’s stock, valued at $6,937,091.07. This trade represents a 2.68% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 41,684 shares of company stock worth $773,350. Company insiders own 3.61% of the company’s stock.

Unity Software News Roundup

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

• Positive Sentiment: Preliminary Q1 beat — Unity said preliminary revenue of $505M–$508M (vs. prior guidance $480M–$490M) and Adjusted EBITDA $130M–$135M (vs. $105M–$110M); management cited Unity V as a driver and flagged a plan to exit non‑strategic ad units to boost growth/profitability. Business Wire: Preliminary Results
• Positive Sentiment: Market reaction & company update — Coverage notes the upbeat preview and strategic shake‑up as the immediate reason for the rally. Investors are treating the combination of better-than-expected Q1 metrics and a streamlined business mix as meaningful de‑risking. Proactive Investors: Shares Jump After Upbeat Preliminary Results
• Positive Sentiment: Analyst support — Multiple firms reiterated/raised ratings and targets (e.g., Morgan Stanley raised its price target to $32 and set an “overweight” rating; Citizens/JMP reaffirmed a $37 Market Outperform). Those actions lend credibility to the rebound thesis and support buying interest. Benzinga: Analyst Actions
• Positive Sentiment: Heavy call buying — Unusually large options activity: ~57,327 call contracts traded (≈15% above typical daily call volume), consistent with directional bullish speculation or hedged positions ahead of the print. (No link)
• Positive Sentiment: China sale speculation — Reports that China asset sale talk has intensified are fueling M&A speculation, which can attract event‑driven buyers and bid up the stock while details remain unresolved. 247wallst: China Sale Talk
• Neutral Sentiment: Guidance/preview coverage — Several outlets are highlighting the company’s updated Q1 outlook and strategic changes; that coverage increases visibility but outcomes depend on the formal earnings release and management commentary. Benzinga: What’s Behind The Jump
• Negative Sentiment: Competitive / adtech skepticism — Comparative analyses argue rival Digital Turbine may have the edge in adtech metrics (ODS/AGP growth) and point to lingering weaknesses in parts of Unity’s ad platform, which could cap upside if execution stalls. Zacks: APPS vs U AdTech Comparison
• Negative Sentiment: Mixed analyst moves — Some firms trimmed price targets (e.g., Wells Fargo lowered its target from $38 to $29 despite keeping an “overweight” call), reflecting ongoing model risk and differing views on longer‑term monetization — a reminder the recovery isn’t unanimous. Benzinga: Analyst Notes

Hedge Funds Weigh In On Unity Software

Hedge funds have recently modified their holdings of the company. Vanguard Group Inc. increased its holdings in Unity Software by 2.9% in the 4th quarter. Vanguard Group Inc. now owns 35,553,296 shares of the company’s stock worth $1,570,389,000 after acquiring an additional 996,685 shares during the last quarter. Slate Path Capital LP lifted its position in Unity Software by 25.4% in the 2nd quarter. Slate Path Capital LP now owns 20,016,952 shares of the company’s stock worth $484,410,000 after buying an additional 4,048,484 shares during the last quarter. Wellington Management Group LLP increased its holdings in shares of Unity Software by 58.7% in the third quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company’s stock worth $729,284,000 after buying an additional 6,734,285 shares during the period. Norges Bank purchased a new stake in shares of Unity Software during the second quarter valued at approximately $151,221,000. Finally, Geode Capital Management LLC increased its stake in shares of Unity Software by 5.9% in the fourth quarter. Geode Capital Management LLC now owns 5,852,047 shares of the company’s stock worth $258,547,000 after buying an additional 328,595 shares during the period. Institutional investors own 73.46% of the company’s stock.

Unity Software Trading Up 13.7%

The firm’s 50 day moving average is $24.34 and its 200 day moving average is $35.81. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.84 and a quick ratio of 1.84. The company has a market capitalization of $8.43 billion, a PE ratio of -20.28, a P/E/G ratio of 9.19 and a beta of 2.14.

Unity Software (NYSE:U) last announced its quarterly earnings results on Wednesday, February 11th. The company reported $0.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.20 by $0.04. The business had revenue of $503.09 million for the quarter, compared to analyst estimates of $490.64 million. Unity Software had a negative net margin of 21.77% and a negative return on equity of 4.76%. The company’s revenue was up 10.1% on a year-over-year basis. During the same quarter last year, the firm earned ($0.30) EPS. As a group, equities analysts predict that Unity Software Inc. will post -1.25 EPS for the current year.

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.