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

Unity Software Inc. (NYSE:U) saw some unusual options trading activity on Friday. Investors purchased 57,327 call options on the stock. This is an increase of 15% compared to the typical daily volume of 49,939 call options.

Insider Buying and Selling at Unity Software

In other Unity Software news, CAO Mark Barrysmith sold 10,578 shares of the company’s stock in a transaction on Wednesday, February 25th. The shares were 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 owned 383,901 shares in the company, valued at approximately $6,937,091.07. This represents a 2.68% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Alexander Blum sold 10,164 shares of the firm’s stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total transaction of $183,663.48. Following the completion of the sale, the chief operating officer owned 550,966 shares of the company’s stock, valued at $9,955,955.62. This trade represents a 1.81% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 41,684 shares of company stock valued at $773,350. 3.61% of the stock is owned by company insiders.

Hedge Funds Weigh In On Unity Software

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Wellington Management Group LLP grew its holdings in Unity Software by 58.7% in the third quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company’s stock valued at $729,284,000 after purchasing an additional 6,734,285 shares during the last quarter. Norges Bank acquired a new position in shares of Unity Software during the 2nd quarter worth $151,221,000. Slate Path Capital LP boosted its position 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 in the last quarter. Massachusetts Financial Services Co. MA purchased a new stake in shares of Unity Software in the 3rd quarter worth about $106,233,000. Finally, Duquesne Family Office LLC acquired a new stake in Unity Software in the 2nd quarter valued at about $42,932,000. 73.46% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of brokerages recently commented on U. Citizens Jmp restated a “market outperform” rating and issued a $37.00 price objective on shares of Unity Software in a research report on Friday. Piper Sandler upgraded Unity Software from a “neutral” rating to an “overweight” rating and boosted their target price for the stock from $43.00 to $59.00 in a research report on Thursday, December 11th. Oppenheimer raised Unity Software from a “market perform” rating to an “outperform” rating and set a $38.00 target price for the company in a research note on Tuesday, February 10th. Weiss Ratings reissued a “sell (d-)” rating on shares of Unity Software in a report on Wednesday, January 21st. Finally, Jefferies Financial Group lifted their price target on Unity Software from $49.00 to $55.00 and gave the company a “buy” rating in a research note on Monday, January 5th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Unity Software presently has an average rating of “Moderate Buy” and a consensus price target of $37.41.

More Unity Software News

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 Stock Up 13.7%

U stock opened at $19.47 on Friday. The company 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 52 week low of $15.33 and a 52 week high of $52.15. The company’s 50-day moving average price is $24.34 and its 200 day moving average price is $35.74. The company has a current ratio of 1.84, a quick ratio of 1.84 and a debt-to-equity ratio of 0.52.

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