Unity Software (NYSE:U) Price Target Lowered to $27.00 at The Goldman Sachs Group

Unity Software (NYSE:U) had its price target cut by The Goldman Sachs Group from $47.00 to $27.00 in a report released on Thursday,Benzinga reports. They currently have a neutral rating on the stock.

U has been the subject of several other research reports. Jefferies Financial Group increased their price target on Unity Software from $49.00 to $55.00 and gave the stock a “buy” rating in a research note on Monday, January 5th. Needham & Company LLC reaffirmed a “buy” rating and issued a $50.00 price target on shares of Unity Software in a report on Wednesday. Benchmark reiterated a “hold” rating on shares of Unity Software in a research report on Monday, February 2nd. Citizens Jmp cut their target price on Unity Software from $50.00 to $37.00 and set a “market outperform” rating for the company in a research note on Thursday. Finally, UBS Group cut their target price on shares of Unity Software from $46.00 to $32.00 and set a “neutral” rating on the stock in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $39.29.

Unity Software Trading Down 8.5%

NYSE U opened at $19.59 on Thursday. 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 has a one year low of $15.33 and a one year high of $52.15. The business has a 50 day simple moving average of $40.73 and a 200 day simple moving average of $39.69. The stock has a market capitalization of $8.38 billion, a P/E ratio of -20.41, a P/E/G ratio of 19.50 and a beta of 2.04.

Unity Software (NYSE:U) last announced its quarterly 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 during the quarter, compared to analyst estimates of $490.64 million. During the same quarter in the previous year, the business posted ($0.30) EPS. Unity Software’s quarterly revenue was up 10.1% on a year-over-year basis. Research analysts expect that Unity Software will post -1.25 earnings per share for the current year.

Insider Buying and Selling

In other Unity Software news, COO Alexander Blum sold 40,693 shares of the company’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 $1,683,876.34. Following the completion of the sale, the chief operating officer directly owned 563,118 shares of the company’s stock, valued at approximately $23,301,822.84. This represents a 6.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David Helgason sold 393,312 shares of the stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $49.64, for a total transaction of $19,524,007.68. Following the completion of the sale, the director directly owned 5,439,173 shares of the company’s stock, valued at $270,000,547.72. This represents a 6.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,338,021 shares of company stock valued at $63,138,575 in the last 90 days. Insiders own 3.61% of the company’s stock.

Institutional Trading of Unity Software

Several hedge funds and other institutional investors have recently bought and sold shares of U. REAP Financial Group LLC purchased a new position in shares of Unity Software during the fourth quarter valued at approximately $28,000. Root Financial Partners LLC purchased a new stake in shares of Unity Software in the 3rd quarter worth approximately $27,000. V Square Quantitative Management LLC bought a new stake in Unity Software during the 4th quarter valued at $30,000. Larson Financial Group LLC lifted its position 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 buying an additional 341 shares during the last quarter. Finally, International Assets Investment Management LLC purchased a new position in Unity Software during the 4th quarter worth $36,000. Hedge funds and other institutional investors own 73.46% of the company’s stock.

Unity Software News Summary

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.