Needham & Company LLC Reaffirms “Buy” Rating for Unity Software (NYSE:U)

Unity Software (NYSE:U)‘s stock had its “buy” rating reiterated by research analysts at Needham & Company LLC in a research report issued to clients and investors on Wednesday,Benzinga reports. They presently have a $50.00 price objective on the stock. Needham & Company LLC’s target price suggests a potential upside of 155.23% from the stock’s previous close.

A number of other equities analysts also recently commented on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Unity Software in a report on Wednesday, January 21st. Arete Research upgraded shares of Unity Software from a “neutral” rating to a “buy” rating and set a $48.00 price objective for the company in a research note on Monday, December 1st. Wall Street Zen upgraded shares of Unity Software from a “hold” rating to a “buy” rating in a research note on Saturday, December 6th. Wells Fargo & Company lifted their price target on shares of Unity Software from $51.00 to $54.00 and gave the stock an “overweight” rating in a report on Thursday, January 8th. Finally, Jefferies Financial Group increased their price objective on Unity Software from $49.00 to $55.00 and gave the company a “buy” rating in a report on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $39.29.

Unity Software Stock Performance

U stock opened at $19.59 on Wednesday. Unity Software has a 1-year low of $15.33 and a 1-year high of $52.15. The business has a 50-day moving average price of $40.73 and a 200 day moving average price of $39.69. The company has a market capitalization of $8.38 billion, a P/E ratio of -20.41, a PEG ratio of 19.50 and a beta of 2.04. The company has a debt-to-equity ratio of 0.70, a current ratio of 2.78 and a quick ratio of 2.78.

Unity Software (NYSE:U) last posted 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 net margin of 21.77% and a negative return on equity of 4.78%. The business had revenue of $503.09 million for the quarter, compared to the consensus estimate of $490.64 million. During the same quarter last year, the firm posted ($0.30) EPS. The company’s revenue for the quarter was up 10.1% on a year-over-year basis. As a group, equities research analysts forecast that Unity Software will post -1.25 EPS for the current fiscal year.

Insider Buying and Selling

In other Unity Software news, Director Tomer Bar-Zeev sold 250,000 shares of Unity Software stock in a transaction dated Monday, December 1st. The stock was sold at an average price of $41.93, for a total transaction of $10,482,500.00. Following the completion of the sale, the director owned 1,048,146 shares of the company’s stock, valued at approximately $43,948,761.78. The trade was a 19.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, COO Alexander Blum sold 40,693 shares of the stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $41.38, for a total value of $1,683,876.34. Following the completion of the transaction, the chief operating officer directly owned 563,118 shares in the company, valued at $23,301,822.84. This represents a 6.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,338,021 shares of company stock worth $63,138,575 over the last three months. Corporate insiders own 3.61% of the company’s stock.

Institutional Trading of Unity Software

Several institutional investors and hedge funds have recently bought and sold shares of the business. Jefferies Financial Group Inc. acquired a new stake in shares of Unity Software in the second quarter worth $205,000. Forum Financial Management LP purchased a new stake in Unity Software in the second quarter valued at $256,000. Austin Wealth Management LLC acquired a new stake in Unity Software during the 2nd quarter worth about $208,000. PNC Financial Services Group Inc. raised its stake in shares of Unity Software by 148.2% during the 2nd quarter. PNC Financial Services Group Inc. now owns 22,181 shares of the company’s stock valued at $537,000 after buying an additional 13,245 shares during the last quarter. Finally, Broad Peak Investment Advisers Pte Ltd raised its stake in shares of Unity Software by 43.6% during the 3rd quarter. Broad Peak Investment Advisers Pte Ltd now owns 2,849,437 shares of the company’s stock valued at $114,091,000 after buying an additional 865,179 shares during the last quarter. 73.46% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Unity Software

Here are the key news stories impacting Unity Software this week:

• Positive Sentiment: Q4 beat and improving profitability — Unity reported revenue above consensus and positive adjusted EPS with strong free cash flow and adjusted EBITDA margins, signaling the company is now generating cash rather than burning it; management pointed to Vector and Create strength as drivers of near‑term improvement. BusinessWire: Q4 results MarketBeat: Profitability & cash flow analysis
• Positive Sentiment: Product momentum — Unity’s Vector AI platform showed accelerated sequential growth (management highlighted mid‑teen quarterly growth and very strong monthly trends), and Create returned to growth, supporting the case that the revenue mix is shifting toward higher‑margin offerings. MarketBeat: Vector momentum
• Neutral Sentiment: Analysts are re‑forecasting — many firms lowered price targets and adjusted models after the quarter, but several still maintain buy/overweight ratings with material upside vs. the current price, reflecting disagreement on how quickly Vector will replace legacy revenue. Benzinga: analyst updates
• Neutral Sentiment: High-volume capitulation cleared short-term positions — trading volume spiked as investors sold on guidance, which can both exaggerate downside and create a liquidity-driven reset in valuation; this raises short‑term volatility but also a potential entry point for longer-term holders if fundamentals hold. MarketBeat: volume & capitulation
• Negative Sentiment: Weak near‑term guidance — Unity’s Q1 revenue guidance came in below consensus, driven by management’s decision to wind down a lower‑margin legacy advertising product (IronSource) before new Vector revenue fully ramps. That guidance miss sparked the rapid decline as the market focuses on near‑term top‑line risk. Reuters: downbeat forecast
• Negative Sentiment: Negative market reaction and bearish pieces — several outlets and analysts flagged the guidance and AI‑displacement fears as reasons to sell or remain cautious, amplifying downside pressure. Coverage includes bearish takes and articles highlighting the revenue forecast miss. Blockonomi: revenue forecast miss Seeking Alpha: bearish analysis

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.