Bank of America Increases Unity Software (NYSE:U) Price Target to $21.00

Unity Software (NYSE:U) had its price objective lifted by research analysts at Bank of America from $19.00 to $21.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a “neutral” rating on the stock. Bank of America‘s target price would suggest a potential upside of 7.85% from the company’s previous close.

U has been the subject of several other reports. Piper Sandler raised shares of Unity Software from a “neutral” rating to an “overweight” rating and raised their target price for the stock from $43.00 to $59.00 in a research report on Thursday, December 11th. Jefferies Financial Group boosted their price target on shares of Unity Software from $49.00 to $55.00 and gave the company a “buy” rating in a research report on Monday, January 5th. Citigroup decreased their price target on shares of Unity Software from $52.00 to $43.00 and set a “buy” rating for the company in a research note on Thursday, February 12th. Weiss Ratings restated a “sell (d-)” rating on shares of Unity Software in a report on Wednesday, January 21st. Finally, Oppenheimer upgraded Unity Software from a “market perform” rating to an “outperform” rating and set a $38.00 target price on the stock in a report on Tuesday, February 10th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Unity Software presently has a consensus rating of “Moderate Buy” and a consensus target price of $37.41.

Unity Software Price Performance

Shares of U stock opened at $19.47 on Friday. The firm has a market cap of $8.43 billion, a P/E ratio of -20.28, a P/E/G ratio of 10.43 and a beta of 2.14. Unity Software has a fifty-two week low of $15.33 and a fifty-two week high of $52.15. The business’s 50 day moving average price is $24.34 and its 200-day moving average price is $35.74. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.84 and a current ratio of 1.84.

Unity Software (NYSE:U) last announced its 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. Unity Software had a negative return on equity of 4.76% and a negative net margin of 21.77%.The company had revenue of $503.09 million during the quarter, compared to the consensus estimate of $490.64 million. During the same quarter in the prior year, the company earned ($0.30) earnings per share. The firm’s revenue for the quarter was up 10.1% on a year-over-year basis. On average, equities research analysts anticipate that Unity Software will post -1.25 earnings per share for the current year.

Insider Transactions at Unity Software

In related news, CAO Mark Barrysmith sold 10,578 shares of the stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total value of $191,144.46. Following the completion of the transaction, the chief accounting officer directly owned 383,901 shares in the company, valued at $6,937,091.07. This trade represents a 2.68% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Alexander Blum sold 2,541 shares of Unity Software stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $18.76, for a total transaction of $47,669.16. Following the transaction, the chief operating officer directly owned 548,425 shares of the company’s stock, valued at approximately $10,288,453. This trade represents a 0.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 41,684 shares of company stock valued at $773,350 in the last three months. 3.61% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Unity Software

A number of institutional investors and hedge funds have recently made changes to their positions in U. Vanguard Group Inc. lifted its holdings in shares of Unity Software by 2.9% during the fourth quarter. Vanguard Group Inc. now owns 35,553,296 shares of the company’s stock valued at $1,570,389,000 after purchasing an additional 996,685 shares during the last quarter. Slate Path Capital LP grew its stake in shares of 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 position in Unity Software by 58.7% during the 3rd quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company’s stock valued at $729,284,000 after buying an additional 6,734,285 shares in the last quarter. Norges Bank purchased a new position in Unity Software during the second quarter valued at $151,221,000. Finally, Geode Capital Management LLC raised its stake in Unity Software by 5.9% during the fourth quarter. Geode Capital Management LLC now owns 5,852,047 shares of the company’s stock valued at $258,547,000 after buying an additional 328,595 shares during the last quarter. Institutional investors own 73.46% of the company’s stock.

Key Headlines Impacting Unity Software

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

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.