Unity Software (NYSE:U) Sees Large Volume Increase – Should You Buy?

Unity Software Inc. (NYSE:U) saw unusually-high trading volume on Friday . Approximately 31,898,925 shares changed hands during mid-day trading, an increase of 263% from the previous session’s volume of 8,795,304 shares.The stock last traded at $30.1490 and had previously closed at $38.40.

Wall Street Analyst Weigh In

U has been the subject of several research reports. Citigroup boosted their price objective on shares of Unity Software from $50.00 to $52.00 and gave the company a “buy” rating in a research report on Tuesday, November 11th. Wells Fargo & Company boosted their price target on Unity Software from $51.00 to $54.00 and gave the company an “overweight” rating in a report on Thursday, January 8th. Piper Sandler upgraded Unity Software from a “neutral” rating to an “overweight” rating and raised their price objective for the stock from $43.00 to $59.00 in a report on Thursday, December 11th. Deutsche Bank Aktiengesellschaft started coverage on Unity Software in a report on Wednesday, October 22nd. They issued a “hold” rating and a $39.00 target price for the company. Finally, UBS Group raised their price target on Unity Software from $35.00 to $40.00 and gave the company a “neutral” rating in a research note on Monday, October 20th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Unity Software has a consensus rating of “Moderate Buy” and a consensus price target of $45.27.

Unity Software Stock Performance

The company has a quick ratio of 2.78, a current ratio of 2.78 and a debt-to-equity ratio of 0.70. The firm has a 50-day moving average price of $43.99 and a 200 day moving average price of $40.33. The firm has a market capitalization of $12.42 billion, a PE ratio of -27.65, a price-to-earnings-growth ratio of 40.25 and a beta of 2.04.

Unity Software (NYSE:U) last posted its quarterly earnings data on Wednesday, November 5th. The company reported $0.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.17 by $0.03. Unity Software had a negative return on equity of 9.45% and a negative net margin of 24.15%.The firm had revenue of $470.62 million for the quarter, compared to the consensus estimate of $452.87 million. During the same quarter in the previous year, the business earned ($0.31) EPS. The company’s quarterly revenue was up 5.4% compared to the same quarter last year. Research analysts expect that Unity Software Inc. will post -1.25 earnings per share for the current year.

Insiders Place Their Bets

In other Unity Software news, Director Tomer Bar-Zeev sold 250,000 shares of the stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $41.93, for a total transaction of $10,482,500.00. Following the sale, the director directly owned 1,048,146 shares in the company, valued at $43,948,761.78. This represents a 19.26% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Matthew S. Bromberg sold 41,025 shares of the firm’s stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $41.38, for a total transaction of $1,697,614.50. Following the completion of the transaction, the chief executive officer directly owned 1,192,541 shares of the company’s stock, valued at $49,347,346.58. This represents a 3.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 1,647,935 shares of company stock valued at $75,174,498. 3.61% of the stock is owned by company insiders.

Institutional Investors Weigh In On Unity Software

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Wellington Management Group LLP lifted its holdings 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 worth $729,284,000 after buying an additional 6,734,285 shares during the last quarter. Norges Bank acquired a new stake in shares of Unity Software during the 2nd quarter worth about $151,221,000. Slate Path Capital LP lifted its stake in Unity Software by 25.4% during the second quarter. Slate Path Capital LP now owns 20,016,952 shares of the company’s stock worth $484,410,000 after purchasing an additional 4,048,484 shares during the last quarter. Massachusetts Financial Services Co. MA acquired a new position in Unity Software in the third quarter valued at approximately $106,233,000. Finally, Duquesne Family Office LLC purchased a new position in Unity Software in the second quarter valued at approximately $42,932,000. 73.46% of the stock is currently owned by institutional investors and hedge funds.

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.