Unity Software (NYSE:U) Price Target Cut to $38.00 by Analysts at Wells Fargo & Company

Unity Software (NYSE:U) had its price target lowered by Wells Fargo & Company from $54.00 to $38.00 in a report issued on Thursday,Benzinga reports. The brokerage currently has an overweight rating on the stock.

U has been the topic of several other reports. Wedbush upped their target price on shares of Unity Software from $50.00 to $55.00 and gave the company an “outperform” rating in a research report on Tuesday, December 2nd. Jefferies Financial Group lifted their target price on Unity Software from $49.00 to $55.00 and gave the stock a “buy” rating in a report on Monday, January 5th. Macquarie Infrastructure raised Unity Software from a “neutral” rating to an “outperform” rating and boosted their target price for the company from $33.00 to $50.00 in a research report on Friday, November 7th. Oppenheimer raised shares of Unity Software from a “market perform” rating to an “outperform” rating and set a $38.00 price objective for the company in a research note on Tuesday. Finally, Barclays increased their target price on shares of Unity Software from $30.00 to $35.00 and gave the company an “equal weight” rating in a research note on Thursday, November 6th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $39.29.

Unity Software Stock Performance

NYSE:U opened at $19.59 on Thursday. The company has a market cap of $8.38 billion, a price-to-earnings ratio of -20.41, a PEG ratio of 19.50 and a beta of 2.04. Unity Software has a 1 year low of $15.33 and a 1 year high of $52.15. The stock’s 50 day simple moving average is $40.73 and its two-hundred day simple moving average is $39.69. 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 earnings per share for the quarter, beating analysts’ consensus estimates of $0.20 by $0.04. The firm had revenue of $503.09 million during the quarter, compared to analyst estimates of $490.64 million. Unity Software had a negative net margin of 21.77% and a negative return on equity of 4.78%. Unity Software’s revenue for the quarter was up 10.1% compared to the same quarter last year. During the same period last year, the firm posted ($0.30) earnings per share. As a group, equities analysts anticipate that Unity Software will post -1.25 earnings per share for the current fiscal year.

Insider Buying and Selling at Unity Software

In related news, COO Alexander Blum sold 40,693 shares of the stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $41.38, for a total value of $1,683,876.34. Following the transaction, the chief operating officer owned 563,118 shares of the company’s stock, valued at $23,301,822.84. This represents a 6.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Jarrod Yahes sold 34,719 shares of Unity Software stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $41.38, for a total value of $1,436,672.22. Following the sale, the chief financial officer directly owned 573,871 shares of the company’s stock, valued at approximately $23,746,781.98. This trade represents a 5.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 1,338,021 shares of company stock valued at $63,138,575. 3.61% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Unity Software

Several institutional investors have recently made changes to their positions in U. REAP Financial Group LLC purchased a new stake in Unity Software in the fourth quarter worth about $28,000. Root Financial Partners LLC bought a new stake in shares of Unity Software in the 3rd quarter valued at about $27,000. V Square Quantitative Management LLC purchased a new stake in shares of Unity Software in the 4th quarter worth approximately $30,000. Larson Financial Group LLC boosted its stake in shares of Unity Software by 88.1% during the third quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock valued at $29,000 after purchasing an additional 341 shares in the last quarter. Finally, International Assets Investment Management LLC bought a new position in shares of Unity Software during the fourth quarter valued at approximately $36,000. Hedge funds and other institutional investors own 73.46% of the company’s stock.

More Unity Software News

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

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.