Wall Street Zen Downgrades Unity Software (NYSE:U) to Hold

Unity Software (NYSE:U) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued on Saturday.

A number of other brokerages have also issued reports on U. Bank of America upped their price target on shares of Unity Software from $19.00 to $21.00 and gave the company a “neutral” rating in a research note on Friday. Morgan Stanley raised their target price on Unity Software from $30.00 to $32.00 and gave the stock an “overweight” rating in a research note on Friday. The Goldman Sachs Group reduced their price objective on Unity Software from $47.00 to $27.00 and set a “neutral” rating for the company in a research note on Thursday, February 12th. Wedbush reaffirmed an “outperform” rating and set a $30.00 target price on shares of Unity Software in a report on Friday. Finally, BTIG Research cut their price objective on shares of Unity Software from $41.00 to $39.00 and set a “buy” rating on the stock in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Unity Software currently has a consensus rating of “Moderate Buy” and a consensus target price of $37.41.

Unity Software Stock Performance

Shares of U opened at $19.47 on Friday. The company has a current ratio of 1.84, a quick ratio of 1.84 and a debt-to-equity ratio of 0.52. The firm has a market cap 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 has a 12 month low of $15.33 and a 12 month high of $52.15. The stock has a fifty day moving average price of $24.34 and a 200-day moving average price of $35.81.

Unity Software (NYSE:U) last released its quarterly earnings results on Wednesday, February 11th. The company reported $0.24 EPS for the quarter, beating analysts’ consensus estimates of $0.20 by $0.04. The company had revenue of $503.09 million during the quarter, compared to analysts’ expectations of $490.64 million. Unity Software had a negative return on equity of 4.76% and a negative net margin of 21.77%.The firm’s revenue was up 10.1% compared to the same quarter last year. During the same period last year, the business posted ($0.30) earnings per share. Equities research analysts predict that Unity Software will post -1.25 earnings per share for the current fiscal year.

Insider Activity at Unity Software

In other news, CFO Jarrod Yahes sold 6,205 shares of the firm’s stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $21.03, for a total value of $130,491.15. Following the transaction, the chief financial officer owned 728,381 shares in the company, valued at $15,317,852.43. This trade represents a 0.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Mark Barrysmith sold 10,578 shares of the business’s stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total value of $191,144.46. Following the sale, the chief accounting officer owned 383,901 shares of the company’s stock, valued at $6,937,091.07. The trade was a 2.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 41,684 shares of company stock valued at $773,350. 3.61% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. GAMMA Investing LLC increased its stake in shares of Unity Software by 10.8% in the 3rd quarter. GAMMA Investing LLC now owns 2,967 shares of the company’s stock worth $119,000 after acquiring an additional 288 shares during the last quarter. Newbridge Financial Services Group Inc. raised its position in Unity Software by 12.9% in the third quarter. Newbridge Financial Services Group Inc. now owns 2,696 shares of the company’s stock valued at $108,000 after purchasing an additional 308 shares during the period. Xponance Inc. raised its holdings in Unity Software by 1.8% in the 3rd quarter. Xponance Inc. now owns 18,291 shares of the company’s stock valued at $732,000 after buying an additional 328 shares during the period. Larson Financial Group LLC raised its holdings in 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 buying an additional 341 shares during the period. Finally, Swiss Life Asset Management Ltd lifted its position in Unity Software by 3.1% in the fourth quarter. Swiss Life Asset Management Ltd now owns 14,861 shares of the company’s stock valued at $656,000 after buying an additional 449 shares during the last quarter. 73.46% of the stock is owned by hedge funds and other institutional investors.

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

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.