Wedbush Reiterates Outperform Rating for Unity Software (NYSE:U)

Unity Software (NYSE:U)‘s stock had its “outperform” rating reaffirmed by equities research analysts at Wedbush in a research note issued to investors on Friday,Benzinga reports. They currently have a $30.00 price target on the stock. Wedbush’s price objective points to a potential upside of 54.07% from the company’s current price.

A number of other research firms have also issued reports on U. Piper Sandler raised Unity Software from a “neutral” rating to an “overweight” rating and raised their target price for the company from $43.00 to $59.00 in a report on Thursday, December 11th. BTIG Research cut their price target on Unity Software from $41.00 to $39.00 and set a “buy” rating for the company in a report on Friday. Needham & Company LLC reissued a “buy” rating and issued a $35.00 price objective on shares of Unity Software in a research report on Friday. Citizens Jmp dropped their target price on shares of Unity Software from $50.00 to $37.00 and set a “market outperform” rating on the stock in a research report on Thursday, February 12th. Finally, Wells Fargo & Company cut their target price on shares of Unity Software from $38.00 to $29.00 and set an “overweight” rating for the company 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 given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $37.41.

Unity Software Stock Performance

Shares of U opened at $19.47 on Friday. The company has a market capitalization of $8.43 billion, a PE ratio of -20.28, a price-to-earnings-growth ratio of 10.43 and a beta of 2.14. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.84 and a quick ratio of 1.84. Unity Software has a one year low of $15.33 and a one year high of $52.15. The company’s fifty day moving average price is $24.34 and its 200 day moving average price is $35.74.

Unity Software (NYSE:U) last released its quarterly 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. The company 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 21.77% and a negative return on equity of 4.76%. The business’s quarterly revenue was up 10.1% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.30) earnings per share. As a group, analysts expect that Unity Software will post -1.25 earnings per share for the current year.

Insiders Place Their Bets

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 stock was sold at an average price of $18.76, for a total transaction of $47,669.16. Following the sale, 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CAO Mark Barrysmith sold 10,578 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 value 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 approximately $6,937,091.07. This trade represents a 2.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 41,684 shares of company stock worth $773,350. 3.61% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Unity Software

Several institutional investors and hedge funds have recently bought and sold shares of U. Jefferies Financial Group Inc. bought a new stake in Unity Software in the second quarter valued at about $205,000. Vanguard Group Inc. lifted its stake in Unity Software by 2.8% during the third quarter. Vanguard Group Inc. now owns 34,556,611 shares of the company’s stock worth $1,383,647,000 after purchasing an additional 930,293 shares during the period. Broad Peak Investment Advisers Pte Ltd boosted its holdings in Unity Software by 43.6% during the third quarter. Broad Peak Investment Advisers Pte Ltd now owns 2,849,437 shares of the company’s stock valued at $114,091,000 after purchasing an additional 865,179 shares in the last quarter. Maytree Asset Management Ltd boosted its holdings in Unity Software by 112.0% during the third quarter. Maytree Asset Management Ltd now owns 217,846 shares of the company’s stock valued at $8,723,000 after purchasing an additional 115,111 shares in the last quarter. Finally, State of Wyoming bought a new stake in shares of Unity Software in the 2nd quarter valued at approximately $721,000. 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

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.